WHEELS INDIA 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

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)

Equitymaster requests your view! Post a comment on "WHEELS INDIA 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

WHEELS INDIA Announces Quarterly Results (4QFY18); Net Profit Up 5.8% (Quarterly Result Update)

Jul 19, 2018 | Updated on Jul 19, 2018

For the quarter ended March 2018, WHEELS INDIA has posted a net profit of Rs 195 m (up 5.8% YoY). Sales on the other hand came in at Rs 7 bn (up 25.7% YoY). Read on for a complete analysis of WHEELS INDIA's quarterly results.

Sandhar Technologies IPO: Worth Betting on This Automotive Component Manufacturer? (IPO)

Mar 17, 2018

Should you subscribe to the IPO of Sandhar Technologies Ltd?

More Views on News

Most Popular

My 3 Best Small-cap Stocks to Get Rich in this Market Rebound(Profit Hunter)

Oct 14, 2019

This is once in a decade opportunity to make a killing from smallcap rebound.

Finally, Is the Share Price of Yes Bank Ready for a Rebound?(The 5 Minute Wrapup)

Oct 7, 2019

Here's what every individual investor must know about Yes Bank...

The One Stock I Like in this Market(The 5 Minute Wrapup)

Oct 10, 2019

There are rare periods in markets when you get good quality stocks at attractive valuations. Is this one such period?

Rebound Riches Could be Yours With These Stocks(Profit Hunter)

Oct 4, 2019

The secret to multibagger is not big businesses, but great managements... Here's how to find them to make the most of once in a decade rebound opportunity.

5 Smart Money Stocks to Profit from the Market Rebound(The 5 Minute Wrapup)

Oct 11, 2019

Now is the time to put money in these 5 stocks to take advantage of the recovery in the economy and the markets.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK WHEELS INDIA

  • Track your investment in WHEELS INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

WHEELS INDIA 5-YR ANALYSIS

COMPARE WHEELS INDIA WITH

MARKET STATS