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WHEELS INDIA 2018-19 Annual Report Analysis
Sun, 31 Mar

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 36.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.1% in FY19 as against 8.4% 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 1.3% 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 25,150 34,413 36.8%
Other income Rs m 80 57 -29.2%
Total Revenues Rs m 25,230 34,470 36.6%
Gross profit Rs m 2,111 2,453 16.2%
Depreciation Rs m 705 787 11.6%
Interest Rs m 449 659 46.9%
Profit before tax Rs m 1,038 1,064 2.5%
Tax Rs m 305 321 5.4%
Profit after tax Rs m 734 743 1.3%
Gross profit margin % 8.4 7.1
Effective tax rate % 29.3 30.2
Net profit margin % 2.9 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

WHEELS INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 12 billion as compared to Rs 9 billion in FY18, thereby witnessing an increase of 35.4%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY18, a growth of 49.9%.
  • Current assets rose 27% and stood at Rs 13 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 21 billion as against Rs 17 billion during FY18, thereby witnessing a growth of 26%.

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 8,665 11,732 35.4
Long-term Debt Rs m 1,337 2,005 49.9
Total Liabilities Rs m 16,715 21,123 26.4
 
Current assets Rs m 9,988 12,685 27.0
Fixed Assets Rs m 6,728 8,438 25.4
Total Assets Rs m 16,715 21,123 26.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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: Accord Fintech, Equitymaster



Current Valuations for WHEELS INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.9, an decline from the EPS of Rs 61.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 905.0, stands at 28.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.0 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 2,090.6 1,430.3
TTM Earnings per share Rs 61.0 30.9
Diluted earnings per share Rs 30.5 30.9
Price to Cash Flow x 37.8 27.0
TTM P/E ratio x 75.8 28.8
Price / Book Value ratio x 3.7 6.4
Market Cap Rs m 21,863 41,298
Dividends per share (Unadj.) Rs 15.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 3.3x 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 11.6% during FY19, from 12.5% 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 20.5% during FY19, from 20.6% 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 6.6% during FY19, from 7.1% 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 7 6
Interest coverage x 3.3 2.6
Debt to equity ratio x 0.2 0.3
Return on assets % 7.1 6.6
Return on equity % 12.5 11.6
Return on capital employed % 20.6 20.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 2,260.1 to Rs 905.0, registering a loss of Rs 1,355.1 or around 60.0%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of WHEELS INDIA?

WHEELS INDIA currently trades at Rs 597.4 per share. You can check out the latest share price performance of WHEELS INDIA here...

What was the revenue of WHEELS INDIA in FY19? How does it compare to earlier years?

The revenues of WHEELS INDIA stood at Rs 34,470 m in FY19, which was up 36.6% compared to Rs 25,230 m reported in FY18.

WHEELS INDIA's revenue has grown from Rs 18,302 m in FY16 to Rs 34,470 m in FY19.

Over the past 4 years, the revenue of WHEELS INDIA has grown at a CAGR of 23.5%.

What was the net profit of WHEELS INDIA in FY19? How does it compare to earlier years?

The net profit of WHEELS INDIA stood at Rs 743 m in FY19, which was up 1.3% compared to Rs 734 m reported in FY18.

This compares to a net profit of Rs 584 m in FY17 and a net profit of Rs 400 m in FY16.

Over the past 4 years, WHEELS INDIA net profit has grown at a CAGR of 22.9%.

What does the cash flow statement of WHEELS INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of WHEELS INDIA reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 1,835 m as compared to Rs 1,311 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -2,303 m as compared to Rs -1,351 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 378 m as compared to Rs 93 m in FY18.

Here's the cash flow statement of WHEELS INDIA for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations1,4831,5521,3111,835
From Investments-686-752-1,351-2,303
From Financial Activity-817-75193378
Net Cashflow-204953-90

What does the Key Ratio analysis of WHEELS INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of WHEELS INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 7.1% in FY19 as against 8.4% in FY18.
  • Net profit margins declined from 2.9% in FY18 to 2.2% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.3 as compared to 0.2 in FY18.

Here's the ratio/financial analysis of WHEELS INDIA for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)9.49.38.47.1
Net Profit Margin (%)2.22.92.92.2
Debt to Equity Ratio (x)0.50.30.20.3

Read: Latest Annual Report Analysis of WHEELS INDIA

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