WESTLIFE DEVELOP. 2020-21 Annual Report Analysis

Wed, 31 Mar

WESTLIFE DEVELOP. has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

WESTLIFE DEVELOP. Income Statement Analysis

• Operating income during the year fell 36.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 74.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.2% in FY21 as against 12.8% in FY20.
• Depreciation charges increased by 0.9% and finance costs increased by 4.6% YoY, respectively.
• Other income grew by 240.8% YoY.
• Net profit for the year grew by 1253.1% YoY.
• Net profit margins during the year declined from 0.5% in FY20 to 10.1% in FY21.

WESTLIFE DEVELOP. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	15,478	9,860	-36.3%
Other income	Rs m	130	443	240.8%
Total Revenues	Rs m	15,608	10,303	-34.0%
Gross profit	Rs m	1,974	511	-74.1%
Depreciation	Rs m	1,384	1,396	0.9%
Interest	Rs m	808	845	4.6%
Profit before tax	Rs m	-88	-1,287	1,367.2%
Tax	Rs m	-14	-293	1,955.5%
Profit after tax	Rs m	-73	-994	1,253.1%
Gross profit margin	%	12.8	5.2
Effective tax rate	%	16.3	22.8
Net profit margin	%	-0.5	-10.1

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WESTLIFE DEVELOP. Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 21.2%.
• Current assets rose 28% and stood at Rs 2 billion, while fixed assets fell 7% and stood at Rs 15 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 18 billion during FY20, thereby witnessing a fall of 4%.

WESTLIFE DEVELOP. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,709	4,768	-16.5
Current Liabilities	Rs m	4,038	4,896	21.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,520	16,834	-3.9
Current assets	Rs m	1,677	2,149	28.1
Fixed Assets	Rs m	15,843	14,685	-7.3
Total Assets	Rs m	17,520	16,834	-3.9

WESTLIFE DEVELOP. Cash Flow Statement Analysis

• WESTLIFE DEVELOP.'s cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -742 million, an improvement of 9.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -453 million, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 97 million from the Rs -67 million net cash flows seen during FY20.

WESTLIFE DEVELOP. Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,996	1,292	-35.3%
Cash Flow from Investing Activities	Rs m	-676	-742	-
Cash Flow from Financing Activities	Rs m	-1,387	-453	-
Net Cash Flow	Rs m	-67	97	-

Current Valuations for WESTLIFE DEVELOP.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.4, an decline from the EPS of Rs -0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 459.2, stands at -72.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.0 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 156.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	99.4	63.3
TTM Earnings per share	Rs	-0.5	-6.4
Diluted earnings per share	Rs	-0.5	-6.4
Price to Cash Flow	x	38.1	156.2
TTM P/E ratio	x	-679.4	-72.0
Price / Book Value ratio	x	10.3	13.2
Market Cap	Rs m	58,928	62,808
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WESTLIFE DEVELOP.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.4x during FY21, from 0.4x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at -0.5x during FY21, from 0.9x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -20.9% during FY21, from -1.3% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at -9.3% during FY21, from 12.6% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at -0.9% during FY21, from 4.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.4	0.4
Debtors’ Days	Days	1	3
Interest coverage	x	0.9	-0.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.2	-0.9
Return on equity	%	-1.3	-20.9
Return on capital employed	%	12.6	-9.3

To see how WESTLIFE DEVELOP. has performed over the last 5 years, please visit here.

WESTLIFE DEVELOP. Share Price Performance

Over the last one year, WESTLIFE DEVELOP. share price has moved up from Rs 320.2 to Rs 459.2, registering a gain of Rs 139.0 or around 43.4%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for WESTLIFE DEVELOP. and quarterly results for WESTLIFE DEVELOP.)

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