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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

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
* 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 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 -
* 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 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
* 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 1.0x 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
* 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 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)

Annual Report FAQs

What is the current share price of WHEELS INDIA?

WHEELS INDIA currently trades at Rs 659.0 per share. You can check out the latest share price performance of WHEELS INDIA here...

What was the revenue of WHEELS INDIA in FY22? How does it compare to earlier years?

The revenues of WHEELS INDIA stood at Rs 39,789 m in FY22, which was up 64.7% compared to Rs 24,157 m reported in FY21.

WHEELS INDIA's revenue has grown from Rs 25,230 m in FY18 to Rs 39,789 m in FY22.

Over the past 5 years, the revenue of WHEELS INDIA has grown at a CAGR of 12.1%.

What was the net profit of WHEELS INDIA in FY22? How does it compare to earlier years?

The net profit of WHEELS INDIA stood at Rs 710 m in FY22, which was up 33,690.5% compared to Rs 2 m reported in FY21.

This compares to a net profit of Rs 473 m in FY20 and a net profit of Rs 743 m in FY19.

Over the past 5 years, WHEELS INDIA net profit has grown at a CAGR of -0.8%.

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 decreased in FY22 and stood at Rs 276 m as compared to Rs 1,482 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -1,204 m as compared to Rs -1,176 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 838 m as compared to Rs -311 m in FY21.

Here's the cash flow statement of WHEELS INDIA for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations1,3111,8351,8381,482276
From Investments-1,351-2,303-2,421-1,176-1,204
From Financial Activity93378699-311838
Net Cashflow53-90116-5-90

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 down at 6.4% in FY22 as against 5.9% in FY21.
  • Net profit margins grew from 0.0% in FY21 to 1.8% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.3 as compared to 0.5 in FY21.

Here's the ratio/financial analysis of WHEELS INDIA for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)8.47.16.45.96.4
Net Profit Margin (%)2.92.21.80.01.8
Debt to Equity Ratio (x)0.20.30.40.50.3

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