WABCO INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

WABCO INDIA 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.

WABCO INDIA Income Statement Analysis

• Operating income during the year fell 3.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.0% in FY21 as against 13.0% in FY20.
• Depreciation charges increased by 0.3% and finance costs increased by 3.8% YoY, respectively.
• Other income declined by 39.1% YoY.
• Net profit for the year declined by 34.6% YoY.
• Net profit margins during the year declined from 8.2% in FY20 to 5.6% in FY21.

WABCO INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	19,296	18,635	-3.4%
Other income	Rs m	639	389	-39.1%
Total Revenues	Rs m	19,934	19,024	-4.6%
Gross profit	Rs m	2,515	2,058	-18.2%
Depreciation	Rs m	901	904	0.3%
Interest	Rs m	19	20	3.8%
Profit before tax	Rs m	2,233	1,523	-31.8%
Tax	Rs m	645	485	-24.9%
Profit after tax	Rs m	1,588	1,038	-34.6%
Gross profit margin	%	13.0	11.0
Effective tax rate	%	28.9	31.8
Net profit margin	%	8.2	5.6

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WABCO INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 83.8%.
• Current assets rose 21% and stood at Rs 19 billion, while fixed assets fell 4% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 25 billion as against Rs 22 billion during FY20, thereby witnessing a growth of 14%.

WABCO INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	18,945	19,964	5.4
Current Liabilities	Rs m	2,633	4,838	83.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	21,799	24,897	14.2
Current assets	Rs m	15,626	18,980	21.5
Fixed Assets	Rs m	6,174	5,917	-4.2
Total Assets	Rs m	21,799	24,897	14.2

WABCO INDIA Cash Flow Statement Analysis

• WABCO INDIA'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 -238 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -186 million, an improvement of 61% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 960 million from the Rs 114 million net cash flows seen during FY20.

WABCO INDIA 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	2,243	1,384	-38.3%
Cash Flow from Investing Activities	Rs m	-1,653	-238	-
Cash Flow from Financing Activities	Rs m	-476	-186	-
Net Cash Flow	Rs m	114	960	741.3%

Current Valuations for WABCO INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.7, an decline from the EPS of Rs 83.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,588.0, stands at 120.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 6.7 times.
• The company's price to cash flow (P/CF) ratio stood at 60.5 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	1,017.2	982.3
TTM Earnings per share	Rs	83.7	54.7
Diluted earnings per share	Rs	83.7	54.7
Price to Cash Flow	x	46.7	60.5
TTM P/E ratio	x	73.3	120.4
Price / Book Value ratio	x	6.1	5.9
Market Cap	Rs m	115,814	117,534
Dividends per share (Unadj.)	Rs	10.0	11.0

Ratio Analysis for WABCO INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.9x during FY21, from 5.9x 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 77.4x during FY21, from 117.4x 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 5.2% during FY21, from 8.4% 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 7.7% during FY21, from 11.9% 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 4.2% during FY21, from 7.4% 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	5.9	3.9
Debtors’ Days	Days	688	1,147
Interest coverage	x	117.4	77.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	4.2
Return on equity	%	8.4	5.2
Return on capital employed	%	11.9	7.7

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 up from Rs 6,135.1 to Rs 6,588.0, registering a gain of Rs 452.9 or around 7.4%.

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

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

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