WABCO INDIA 2021-22 Annual Report Analysis

Fri, 8 Jul

WABCO INDIA 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.

WABCO INDIA Income Statement Analysis

• Operating income during the year rose 36.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.9% in FY22 as against 11.0% in FY21.
• Depreciation charges increased by 2.2% and finance costs decreased by 4.5% YoY, respectively.
• Other income declined by 3.5% YoY.
• Net profit for the year grew by 36.9% YoY.
• Net profit margins during the year grew from 5.6% in FY21 to 5.6% in FY22.

WABCO INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	18,635	25,434	36.5%
Other income	Rs m	389	375	-3.5%
Total Revenues	Rs m	19,024	25,809	35.7%
Gross profit	Rs m	2,058	2,525	22.7%
Depreciation	Rs m	904	924	2.2%
Interest	Rs m	20	19	-4.5%
Profit before tax	Rs m	1,523	1,957	28.6%
Tax	Rs m	485	537	10.7%
Profit after tax	Rs m	1,038	1,421	36.9%
Gross profit margin	%	11.0	9.9
Effective tax rate	%	31.8	27.4
Net profit margin	%	5.6	5.6

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WABCO INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 3.0%.
• Current assets rose 3% and stood at Rs 20 billion, while fixed assets rose 12% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 26 billion as against Rs 25 billion during FY21, thereby witnessing a growth of 5%.

WABCO INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	19,964	21,141	5.9
Current Liabilities	Rs m	4,838	4,985	3.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	24,897	26,182	5.2
Current assets	Rs m	18,980	19,557	3.0
Fixed Assets	Rs m	5,917	6,625	12.0
Total Assets	Rs m	24,897	26,182	5.2

WABCO INDIA Cash Flow Statement Analysis

• WABCO INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 645.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -285 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -675 million from the Rs 960 million net cash flows seen during FY21.

WABCO INDIA 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	1,384	1,383	-0.1%
Cash Flow from Investing Activities	Rs m	-238	-1,773	-
Cash Flow from Financing Activities	Rs m	-186	-285	-
Net Cash Flow	Rs m	960	-675	-

Current Valuations for WABCO INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.9, an improvement from the EPS of Rs 54.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,775.0, stands at 103.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 59.6 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	982.3	1,340.7
TTM Earnings per share	Rs	54.7	74.9
Diluted earnings per share	Rs	54.7	74.9
Price to Cash Flow	x	64.3	59.6
TTM P/E ratio	x	120.4	103.8
Price / Book Value ratio	x	5.9	6.6
Market Cap	Rs m	117,534	139,781
Dividends per share (Unadj.)	Rs	11.0	12.0

Ratio Analysis for WABCO INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY22, from 3.9x 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 improved and stood at 103.9x during FY22, from 77.4x 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 6.7% during FY22, from 5.2% 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 9.3% during FY22, from 7.7% 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 improved and stood at 5.5% during FY22, from 4.2% 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	3.9	3.9
Debtors’ Days	Days	1,147	956
Interest coverage	x	77.4	103.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.2	5.5
Return on equity	%	5.2	6.7
Return on capital employed	%	7.7	9.3

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 7,161.7 to Rs 7,775.0, registering a gain of Rs 613.4 or around 8.6%.

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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