WHEELS INDIA 2021-22 Annual Report Analysis

Wed, 22 Jun

WHEELS 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.

WHEELS INDIA Income Statement Analysis

• Operating income during the year rose 64.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 78.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.4% in FY22 as against 5.9% in FY21.
• Depreciation charges increased by 17.9% and finance costs increased by 21.4% YoY, respectively.
• Other income grew by 425.8% YoY.
• Net profit for the year grew by 33690.5% YoY.
• Net profit margins during the year grew from 0.0% in FY21 to 1.8% in FY22.

WHEELS INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	24,134	39,665	64.4%
Other income	Rs m	24	124	425.8%
Total Revenues	Rs m	24,157	39,789	64.7%
Gross profit	Rs m	1,430	2,546	78.1%
Depreciation	Rs m	856	1,010	17.9%
Interest	Rs m	589	715	21.4%
Profit before tax	Rs m	9	946	10,527.0%
Tax	Rs m	7	236	3,373.5%
Profit after tax	Rs m	2	710	33,690.5%
Gross profit margin	%	5.9	6.4
Effective tax rate	%	76.4	25.0
Net profit margin	%	0.0	1.8

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WHEELS INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 19 billion as compared to Rs 14 billion in FY21, thereby witnessing an increase of 36.7%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY21, a fall of 24.7%.
• Current assets rose 32% and stood at Rs 19 billion, while fixed assets rose 4% and stood at Rs 11 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 30 billion as against Rs 25 billion during FY21, thereby witnessing a growth of 20%.

WHEELS INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,607	7,337	11.0
Current Liabilities	Rs m	13,931	19,041	36.7
Long-term Debt	Rs m	3,345	2,520	-24.7
Total Liabilities	Rs m	24,763	29,740	20.1
Current assets	Rs m	14,291	18,807	31.6
Fixed Assets	Rs m	10,472	10,933	4.4
Total Assets	Rs m	24,763	29,740	20.1

WHEELS INDIA Cash Flow Statement Analysis

• WHEELS INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 276 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 2.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 838 million, an improvement of 370% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -90 million from the Rs -5 million net cash flows seen during FY21.

WHEELS 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	1,482	276	-81.4%
Cash Flow from Investing Activities	Rs m	-1,176	-1,204	-
Cash Flow from Financing Activities	Rs m	-311	838	-
Net Cash Flow	Rs m	-5	-90	-

Current Valuations for WHEELS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.5, an improvement from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 551.1, stands at 18.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 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	1,003.1	1,648.6
TTM Earnings per share	Rs	0.1	29.5
Diluted earnings per share	Rs	0.1	29.5
Price to Cash Flow	x	12.7	10.2
TTM P/E ratio	x	5,197.4	18.7
Price / Book Value ratio	x	1.7	2.4
Market Cap	Rs m	10,905	17,459
Dividends per share (Unadj.)	Rs	1.0	8.3

Ratio Analysis for WHEELS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.0x 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 2.3x during FY22, from 1.0x 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 9.7% during FY22, from 0.0% 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 16.8% during FY22, from 6.0% 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 4.8% during FY22, from 2.4% 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	1.0	1.0
Debtors’ Days	Days	11	8
Interest coverage	x	1.0	2.3
Debt to equity ratio	x	0.5	0.3
Return on assets	%	2.4	4.8
Return on equity	%	0.0	9.7
Return on capital employed	%	6.0	16.8

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 587.4 to Rs 551.1, registering a loss of Rs 36.3 or around 6.2%.

Overall, the S&P BSE SENSEX is down 1.0% over the year.

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

Read: Latest Annual Report Analysis of WHEELS INDIA