WHEELS INDIA 2018-19 Annual Report Analysis

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

WHEELS 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.

WHEELS INDIA Income Statement Analysis

  • Operating income during the year rose 34.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 23.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.1% in FY19 as against 7.8% in FY18.
  • Depreciation charges increased by 11.6% and finance costs increased by 46.9% YoY, respectively.
  • Other income declined by 29.2% YoY.
  • Net profit for the year grew by 0.9% YoY.
  • Net profit margins during the year declined from 2.9% in FY18 to 2.2% in FY19.

WHEELS INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 25,626 34,413 34.3%
Other income Rs m 80 57 -29.2%
Total Revenues Rs m 25,706 34,470 34.1%
Gross profit Rs m 1,986 2,453 23.5%
Depreciation Rs m 705 787 11.6%
Interest Rs m 449 659 46.9%
Profit before tax Rs m 913 1,064 16.5%
Tax Rs m 305 321 5.4%
Profit after tax Rs m 755 762 0.9%
Gross profit margin % 7.8 7.1
Effective tax rate % 33.4 30.2
Net profit margin % 2.9 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



WHEELS INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 11 billion as compared to Rs 9 billion in FY18, thereby witnessing an increase of 25.4%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY18, a growth of 39.8%.
  • Current assets rose 18% and stood at Rs 12 billion, while fixed assets rose 25% and stood at Rs 8 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 20 billion as against Rs 17 billion during FY18, thereby witnessing a growth of 21%.

WHEELS INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 5,866 6,403 9.2
 
Current Liabilities Rs m 8,578 10,757 25.4
Long-term Debt Rs m 1,585 2,216 39.8
Total Liabilities Rs m 16,629 20,148 21.2
 
Current assets Rs m 9,901 11,711 18.3
Fixed Assets Rs m 6,220 7,758 24.7
Total Assets Rs m 16,629 20,148 21.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



WHEELS INDIA Cash Flow Statement Analysis

  • WHEELS INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion, an improvement of 40.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion, an improvement of 70.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 378 million, an improvement of 305% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -90 million from the Rs 53 million net cash flows seen during FY18.

WHEELS 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 1,311 1,835 40.0%
Cash Flow from Investing Activities Rs m -1,351 -2,303 -
Cash Flow from Financing Activities Rs m 93 378 305.5%
Net Cash Flow Rs m 53 -90 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for WHEELS INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.7, an decline from the EPS of Rs 62.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 722.5, stands at 11.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.7 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 2,130.2 1,430.3
TTM Earnings per share Rs 62.8 31.7
Diluted earnings per share Rs 62.7 63.3
Price to Cash Flow x 6.0 5.7
TTM P/E ratio x 11.5 11.5
Price / Book Value ratio x 3.8 6.5
Market Cap Rs m 8,692 8,693
Dividends per share (Unadj.) Rs 15.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for WHEELS INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY19, from 1.2x during FY18. 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 2.6x during FY19, from 3.0x during FY18. 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 11.9% during FY19, from 12.9% 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 20.2% during FY19, from 20.2% 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 7.1% during FY19, from 7.2% 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 1.2 1.1
Debtors’ Days Days 69 62
Interest coverage x 3.0 2.6
Debt to equity ratio x 0.3 0.3
Return on assets % 7.2 7.1
Return on equity % 12.9 11.9
Return on capital employed % 20.2 20.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

WHEELS INDIA Share Price Performance

Over the last one year, WHEELS INDIA share price has moved down from Rs 1,142.8 to Rs 722.5, registering a loss of Rs 420.3 or around 36.8%.

Overall, the S&P BSE SENSEX is up 2.9% over the year.

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

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Related Views on News

WHEELS INDIA Announces Quarterly Results (3QFY20); Net Profit Down 39.8% (Quarterly Result Update)

Feb 19, 2020 | Updated on Feb 19, 2020

For the quarter ended December 2019, WHEELS INDIA has posted a net profit of Rs 92 m (down 39.8% YoY). Sales on the other hand came in at Rs 6 bn (down 25.8% YoY). Read on for a complete analysis of WHEELS INDIA's quarterly results.

WHEELS INDIA Announces Quarterly Results (2QFY20); Net Profit Up 26.5% (Quarterly Result Update)

Nov 7, 2019 | Updated on Nov 7, 2019

For the quarter ended September 2019, WHEELS INDIA has posted a net profit of Rs 287 m (up 26.5% YoY). Sales on the other hand came in at Rs 6 bn (down 25.5% YoY). Read on for a complete analysis of WHEELS INDIA's quarterly results.

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