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WABCO INDIA 2018-19 Annual Report Analysis
Sun, 31 Mar

WABCO INDIA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

WABCO INDIA Income Statement Analysis

  • Operating income during the year rose 12.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 2.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY19 as against 15.7% in FY18.
  • Depreciation charges increased by 15.7% and finance costs decreased by 100.0% YoY, respectively.
  • Other income grew by 55.8% YoY.
  • Net profit for the year grew by 3.4% YoY.
  • Net profit margins during the year declined from 10.8% in FY18 to 9.9% in FY19.

WABCO INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 25,328 28,541 12.7%
Other income Rs m 465 725 55.8%
Total Revenues Rs m 25,793 29,266 13.5%
Gross profit Rs m 3,986 4,099 2.8%
Depreciation Rs m 617 714 15.7%
Interest Rs m 16 0 -100.0%
Profit before tax Rs m 3,818 4,109 7.6%
Tax Rs m 1,090 1,287 18.2%
Profit after tax Rs m 2,728 2,822 3.4%
Gross profit margin % 15.7 14.4
Effective tax rate % 28.5 31.3
Net profit margin % 10.8 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

WABCO INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 5 billion as compared to Rs 6 billion in FY18, thereby witnessing an decrease of -15.1%.
  • Current assets rose 5% and stood at Rs 18 billion, while fixed assets rose 16% and stood at Rs 6 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 23 billion as against Rs 22 billion during FY18, thereby witnessing a growth of 8%.

WABCO INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 15,181 17,800 17.3
 
Current Liabilities Rs m 6,127 5,204 -15.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 21,689 23,355 7.7
 
Current assets Rs m 16,760 17,636 5.2
Fixed Assets Rs m 4,930 5,720 16.0
Total Assets Rs m 21,689 23,355 7.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



WABCO INDIA Cash Flow Statement Analysis

  • WABCO INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -4 billion, an improvement of 108.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -183 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -3 billion from the Rs 880 million net cash flows seen during FY18.

WABCO INDIA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 3,108 1,500 -51.7%
Cash Flow from Investing Activities Rs m -2,052 -4,287 -
Cash Flow from Financing Activities Rs m -176 -183 -
Net Cash Flow Rs m 880 -2,970 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for WABCO INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 148.7, an improvement from the EPS of Rs 143.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 6,664.9, stands at 44.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 37.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 1,335.2 1,504.6
TTM Earnings per share Rs 143.8 148.7
Diluted earnings per share Rs 143.8 148.8
Price to Cash Flow x 44.8 37.9
TTM P/E ratio x 54.9 44.8
Price / Book Value ratio x 8.6 7.5
Market Cap Rs m 129,885 133,895
Dividends per share (Unadj.) Rs 8.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for WABCO INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.4x during FY19, from 2.7x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 15.9% during FY19, from 18.0% during FY19. 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 23.1% during FY19, from 25.3% during FY18. 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 12.1% during FY19, from 12.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.7 3.4
Debtors’ Days Days 934 811
Interest coverage x 237.1 0.0
Debt to equity ratio x 0.0 0.0
Return on assets % 12.7 12.1
Return on equity % 18.0 15.9
Return on capital employed % 25.3 23.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how WABCO INDIA has performed over the last 5 years, please visit here.

WABCO INDIA Share Price Performance

Over the last one year, WABCO INDIA share price has moved down from Rs 7,897.6 to Rs 6,664.9, registering a loss of Rs 1,232.8 or around 15.6%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for WABCO INDIA and quarterly results for WABCO INDIA)

Annual Report FAQs

What is the current share price of WABCO INDIA?

WABCO INDIA currently trades at Rs 15,138.3 per share. You can check out the latest share price performance of WABCO INDIA here...

What was the revenue of WABCO INDIA in FY19? How does it compare to earlier years?

The revenues of WABCO INDIA stood at Rs 29,266 m in FY19, which was up 13.5% compared to Rs 25,793 m reported in FY18.

WABCO INDIA's revenue has grown from Rs 17,055 m in FY16 to Rs 29,266 m in FY19.

Over the past 4 years, the revenue of WABCO INDIA has grown at a CAGR of 19.7%.

What was the net profit of WABCO INDIA in FY19? How does it compare to earlier years?

The net profit of WABCO INDIA stood at Rs 2,822 m in FY19, which was up 3.4% compared to Rs 2,728 m reported in FY18.

This compares to a net profit of Rs 2,135 m in FY17 and a net profit of Rs 2,034 m in FY16.

Over the past 4 years, WABCO INDIA net profit has grown at a CAGR of 11.5%.

What does the cash flow statement of WABCO INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of WABCO INDIA reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 1,500 m as compared to Rs 3,108 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -4,287 m as compared to Rs -2,052 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -183 m as compared to Rs -176 m in FY18.

Here's the cash flow statement of WABCO INDIA for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations2,4221,7963,1081,500
From Investments-2,405-1,199-2,052-4,287
From Financial Activity-116-142-176-183
Net Cashflow-100455880-2,970

What does the Key Ratio analysis of WABCO INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of WABCO INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 14.4% in FY19 as against 15.7% in FY18.
  • Net profit margins declined from 10.8% in FY18 to 9.9% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of WABCO INDIA for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)17.217.415.714.4
Net Profit Margin (%)12.211.410.89.9
Debt to Equity Ratio (x)0.00.00.00.0

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