WARDWIZARD INNOVATIONS 2021-22 Annual Report Analysis

Mon, 22 Aug

WARDWIZARD INNOVATIONS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

WARDWIZARD INNOVATIONS Income Statement Analysis

• Operating income during the year rose 369.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 353.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.5% in FY22 as against 7.8% in FY21.
• Depreciation charges increased by 268.6% and finance costs increased by 460.0% YoY, respectively.
• Other income grew by 1188.9% YoY.
• Net profit for the year grew by 352.8% YoY.
• Net profit margins during the year declined from 4.8% in FY21 to 4.6% in FY22.

WARDWIZARD INNOVATIONS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	393	1,846	369.4%
Other income	Rs m	0	6	1,188.9%
Total Revenues	Rs m	394	1,851	370.3%
Gross profit	Rs m	31	139	353.4%
Depreciation	Rs m	6	23	268.6%
Interest	Rs m	0	0	460.0%
Profit before tax	Rs m	25	121	389.8%
Tax	Rs m	6	37	503.8%
Profit after tax	Rs m	19	85	352.8%
Gross profit margin	%	7.8	7.5
Effective tax rate	%	24.5	30.2
Net profit margin	%	4.8	4.6

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WARDWIZARD INNOVATIONS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 105 million in FY21, thereby witnessing an increase of 1055.4%.
• Current assets rose 593% and stood at Rs 1 billion, while fixed assets rose 152% and stood at Rs 486 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 387 million during FY21, thereby witnessing a growth of 373%.

WARDWIZARD INNOVATIONS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	267	622	132.8
Current Liabilities	Rs m	105	1,208	1,055.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	387	1,830	373.2
Current assets	Rs m	194	1,344	592.8
Fixed Assets	Rs m	193	486	152.0
Total Assets	Rs m	387	1,830	373.2

WARDWIZARD INNOVATIONS Cash Flow Statement Analysis

• WARDWIZARD INNOVATIONS's cash flow from operating activities (CFO) during FY22 stood at Rs 108 million, an improvement of 26,348.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -230 million, an improvement of 97.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 270 million, an improvement of 116% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 148 million from the Rs 9 million net cash flows seen during FY21.

WARDWIZARD INNOVATIONS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	0	108	26,348.8%
Cash Flow from Investing Activities	Rs m	-117	-230	-
Cash Flow from Financing Activities	Rs m	125	270	115.6%
Net Cash Flow	Rs m	9	148	1,563.7%

Current Valuations for WARDWIZARD INNOVATIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an improvement from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 64.4, stands at 171.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 27.1 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 194.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	1.8	7.0
TTM Earnings per share	Rs	0.1	0.3
Diluted earnings per share	Rs	0.1	0.3
Price to Cash Flow	x	821.2	194.1
TTM P/E ratio	x	1,099.5	171.7
Price / Book Value ratio	x	390.0	33.7
Market Cap	Rs m	104,280	20,984
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for WARDWIZARD INNOVATIONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY22, from 1.9x during FY21. 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 434.6x during FY22, from 496.8x during FY21. 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 improved and stood at 13.6% during FY22, from 7.0% during FY22. 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 improved and stood at 19.6% during FY22, from 9.3% during FY21. 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 4.6% during FY22, from 4.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.9	1.1
Debtors’ Days	Days	269	116
Interest coverage	x	496.8	434.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.9	4.6
Return on equity	%	7.0	13.6
Return on capital employed	%	9.3	19.6

To see how WARDWIZARD INNOVATIONS has performed over the last 5 years, please visit here.

WARDWIZARD INNOVATIONS Share Price Performance

Over the last one year, WARDWIZARD INNOVATIONS share price has moved down from Rs 64.4 to Rs 64.4, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 29,330.1 (down 1.4%). Over the last one year it has moved up from 22,177.8 to 29,330.1, a gain of 7,152 points (up 32.2%).

Overall, the S&P BSE SENSEX is up 5.9% over the year.

(To know more, check out historical annual results for WARDWIZARD INNOVATIONS and quarterly results for WARDWIZARD INNOVATIONS)

Read: Latest Annual Report Analysis of WARDWIZARD INNOVATIONS