WABCO INDIA 2018-19 Annual Report Analysis

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WABCO INDIA 2018-19 Annual Report Analysis
Thu, 25 Jul

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 10.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY19 as against 15.3% in FY18.
  • Depreciation charges increased by 15.7% and finance costs decreased by 100.0% YoY, respectively.
  • Other income grew by 42.2% YoY.
  • Net profit for the year grew by 3.4% YoY.
  • Net profit margins during the year declined from 10.4% in FY18 to 9.6% in FY19.

WABCO INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 25,733 28,541 10.9%
Other income Rs m 510 725 42.2%
Total Revenues Rs m 26,243 29,266 11.5%
Gross profit Rs m 3,942 4,099 4.0%
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 % 15.3 14.4
Effective tax rate % 28.5 31.3
Net profit margin % 10.4 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -15.3%.
  • Current assets rose 5% and stood at Rs 18 billion, while fixed assets rose 12% and stood at Rs 5 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 15,259 17,800 16.7
 
Current Liabilities Rs m 6,127 5,192 -15.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 21,689 23,343 7.6
 
Current assets Rs m 16,760 17,624 5.2
Fixed Assets Rs m 4,113 4,593 11.7
Total Assets Rs m 21,689 23,343 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



WABCO INDIA Cash Flow Statement Analysis

  • WABCO INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs -3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 619 million 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 -3,406 -
Cash Flow from Investing Activities Rs m -2,052 619 -
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: Company Reports, Regulatory Filings, 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 6,100.0, stands at 41.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.6 times, while the price to sales ratio stands at 4.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.7 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 1,356.5 1,504.5
TTM Earnings per share Rs 143.8 148.7
Diluted earnings per share Rs 143.8 148.7
Price to Cash Flow x 34.6 32.7
TTM P/E ratio x 41.0 41.0
Price / Book Value ratio x 8.5 7.6
Market Cap Rs m 115,717 115,717
Dividends per share (Unadj.) Rs 8.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 17.9% 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 25.1% 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 92 81
Interest coverage x 236.7 0.0
Debt to equity ratio x 0.0 0.0
Return on assets % 12.7 12.1
Return on equity % 17.9 15.9
Return on capital employed % 25.1 23.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 6,854.9 to Rs 6,100.0, registering a loss of Rs 754.9 or around 11.0%.

Overall, the S&P BSE SENSEX is up 3.1% over the year.

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

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