WARDWIZARD INNOVATIONS 2022-23 Annual Report Analysis

Mon, 19 Feb

WARDWIZARD INNOVATIONS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

WARDWIZARD INNOVATIONS Income Statement Analysis

• Operating income during the year rose 29.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.9% in FY23 as against 7.5% in FY22.
• Depreciation charges increased by 112.1% and finance costs increased by 3575.0% YoY, respectively.
• Other income declined by 38.6% YoY.
• Net profit for the year grew by 4.4% YoY.
• Net profit margins during the year declined from 4.6% in FY22 to 3.7% in FY23.

WARDWIZARD INNOVATIONS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,846	2,389	29.5%
Other income	Rs m	6	4	-38.6%
Total Revenues	Rs m	1,851	2,393	29.2%
Gross profit	Rs m	139	189	35.6%
Depreciation	Rs m	23	49	112.1%
Interest	Rs m	0	10	3,575.0%
Profit before tax	Rs m	121	133	9.2%
Tax	Rs m	37	44	20.3%
Profit after tax	Rs m	85	89	4.4%
Gross profit margin	%	7.5	7.9
Effective tax rate	%	30.2	33.2
Net profit margin	%	4.6	3.7

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WARDWIZARD INNOVATIONS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 6.7%.
• Long-term debt stood at Rs 120 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 10% and stood at Rs 1 billion, while fixed assets rose 70% and stood at Rs 825 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 26%.

WARDWIZARD INNOVATIONS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	622	882	41.7
Current Liabilities	Rs m	1,208	1,289	6.7
Long-term Debt	Rs m	0	120	0.0
Total Liabilities	Rs m	1,830	2,308	26.1
Current assets	Rs m	1,344	1,483	10.3
Fixed Assets	Rs m	486	825	69.8
Total Assets	Rs m	1,830	2,308	26.1

WARDWIZARD INNOVATIONS Cash Flow Statement Analysis

• WARDWIZARD INNOVATIONS's cash flow from operating activities (CFO) during FY23 stood at Rs -183 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -214 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 339 million, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -58 million from the Rs 148 million net cash flows seen during FY22.

WARDWIZARD INNOVATIONS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	108	-183	-
Cash Flow from Investing Activities	Rs m	-230	-214	-
Cash Flow from Financing Activities	Rs m	270	339	25.5%
Net Cash Flow	Rs m	148	-58	-

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 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 51.8, stands at 152.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.3 times, while the price to sales ratio stands at 5.7 times.
• The company's price to cash flow (P/CF) ratio stood at 122.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	7.0	9.1
TTM Earnings per share	Rs	0.3	0.3
Diluted earnings per share	Rs	0.3	0.3
Price to Cash Flow	x	185.9	122.3
TTM P/E ratio	x	237.1	152.6
Price / Book Value ratio	x	33.7	19.1
Market Cap	Rs m	20,984	16,876
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for WARDWIZARD INNOVATIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.1x during FY22. 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 13.9x during FY23, from 434.6x during FY22. 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 10.0% during FY23, from 13.6% during FY23. 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 14.3% during FY23, from 19.6% during FY22. 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 4.3% during FY23, from 4.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	116	247
Interest coverage	x	434.6	13.9
Debt to equity ratio	x	0.0	0.1
Return on assets	%	4.6	4.3
Return on equity	%	13.6	10.0
Return on capital employed	%	19.6	14.3

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 77.1 to Rs 51.8, registering a loss of Rs 25.3 or around 32.8%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 28,246.9 (up 1.0%). Over the last one year it has moved up from 24,050.0 to 28,246.9, a gain of 4,197 points (up 17.5%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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