WHEELS INDIA 2022-23 Annual Report Analysis

Fri, 30 Jun

WHEELS INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

WHEELS INDIA Income Statement Analysis

• Operating income during the year rose 17.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.8% in FY23 as against 6.5% in FY22.
• Depreciation charges decreased by 28.5% and finance costs increased by 43.9% YoY, respectively.
• Other income grew by 67.3% YoY.
• Net profit for the year declined by 27.0% YoY.
• Net profit margins during the year declined from 1.9% in FY22 to 1.2% in FY23.

WHEELS INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	39,665	46,512	17.3%
Other income	Rs m	124	208	67.3%
Total Revenues	Rs m	39,789	46,719	17.4%
Gross profit	Rs m	2,578	2,235	-13.3%
Depreciation	Rs m	1,010	721	-28.5%
Interest	Rs m	715	1,029	43.9%
Profit before tax	Rs m	978	692	-29.2%
Tax	Rs m	236	151	-36.1%
Profit after tax	Rs m	742	542	-27.0%
Gross profit margin	%	6.5	4.8
Effective tax rate	%	24.2	21.8
Net profit margin	%	1.9	1.2

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WHEELS INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 20 billion as compared to Rs 19 billion in FY22, thereby witnessing an increase of 3.2%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY22, a fall of 19.4%.
• Current assets fell 2% and stood at Rs 18 billion, while fixed assets rose 7% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 30 billion as against Rs 30 billion during FY22, thereby witnessing a growth of 1%.

WHEELS INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,337	7,642	4.2
Current Liabilities	Rs m	19,041	19,648	3.2
Long-term Debt	Rs m	2,520	2,033	-19.4
Total Liabilities	Rs m	29,740	30,096	1.2
Current assets	Rs m	18,807	18,354	-2.4
Fixed Assets	Rs m	10,933	11,741	7.4
Total Assets	Rs m	29,740	30,096	1.2

WHEELS INDIA Cash Flow Statement Analysis

• WHEELS INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 1,249.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 22.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 143 million from the Rs -90 million net cash flows seen during FY22.

WHEELS INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	276	3,727	1,249.7%
Cash Flow from Investing Activities	Rs m	-1,204	-1,476	-
Cash Flow from Financing Activities	Rs m	838	-2,108	-
Net Cash Flow	Rs m	-90	143	-

Current Valuations for WHEELS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.5, an decline from the EPS of Rs 30.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 827.2, stands at 40.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	1,648.6	1,933.1
TTM Earnings per share	Rs	30.8	22.5
Diluted earnings per share	Rs	30.8	22.5
Price to Cash Flow	x	7.0	11.4
TTM P/E ratio	x	17.3	40.5
Price / Book Value ratio	x	2.4	1.9
Market Cap	Rs m	17,459	14,341
Dividends per share (Unadj.)	Rs	8.3	7.0

Ratio Analysis for WHEELS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.0x during FY22. 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 1.7x during FY23, from 2.4x during FY22. 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 7.1% during FY23, from 10.1% during FY23. 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 17.8% during FY23, from 17.2% during FY22. 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 5.2% during FY23, from 4.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	0.9
Debtors’ Days	Days	8	7
Interest coverage	x	2.4	1.7
Debt to equity ratio	x	0.3	0.3
Return on assets	%	4.9	5.2
Return on equity	%	10.1	7.1
Return on capital employed	%	17.2	17.8

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 up from Rs 634.7 to Rs 827.2, registering a gain of Rs 192.6 or around 30.3%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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