WELSPUN INVESTMENTS 2022-23 Annual Report Analysis

Fri, 31 Mar

WELSPUN INVESTMENTS 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.

WELSPUN INVESTMENTS Income Statement Analysis

• Operating income during the year rose 81.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 88.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 95.6% in FY23 as against 92.0% in FY22.
• Depreciation charges increased by 0.0% increased by 0.0% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year grew by 122.1% YoY.
• Net profit margins during the year grew from 58.4% in FY22 to 71.6% in FY23.

WELSPUN INVESTMENTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	42	77	81.3%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	42	77	81.3%
Gross profit	Rs m	39	73	88.5%
Depreciation	Rs m	0	0	0.0%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	39	73	88.5%
Tax	Rs m	14	18	29.9%
Profit after tax	Rs m	25	55	122.1%
Gross profit margin	%	92.0	95.6
Effective tax rate	%	36.4	25.1
Net profit margin	%	58.4	71.6

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WELSPUN INVESTMENTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 0 million as compared to Rs 0 million in FY22, thereby witnessing an increase of 20.0%.
• Current assets fell 75% and stood at Rs 15 million, while fixed assets rose 39% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 34%.

WELSPUN INVESTMENTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,445	1,914	32.4
Current Liabilities	Rs m	0	0	20.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,452	1,952	34.4
Current assets	Rs m	58	15	-74.9
Fixed Assets	Rs m	1,394	1,937	38.9
Total Assets	Rs m	1,452	1,952	34.4

WELSPUN INVESTMENTS Cash Flow Statement Analysis

• WELSPUN INVESTMENTS's cash flow from operating activities (CFO) during FY23 stood at Rs -22 million, an improvement of 66.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 24 million, an improvement of 74.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs 1 million net cash flows seen during FY22.

WELSPUN INVESTMENTS 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	-13	-22	-
Cash Flow from Investing Activities	Rs m	14	24	74.6%
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	1	2	250.8%

Current Valuations for WELSPUN INVESTMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.0, an improvement from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 266.5, stands at 17.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 12.7 times.
• The company's price to cash flow (P/CF) ratio stood at 20.9 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	11.6	21.0
TTM Earnings per share	Rs	6.8	15.0
Diluted earnings per share	Rs	6.8	15.0
Price to Cash Flow	x	39.4	20.9
TTM P/E ratio	x	39.4	17.8
Price / Book Value ratio	x	1.0	0.6
Market Cap	Rs m	1,503	1,148
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WELSPUN INVESTMENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 80.8x during FY23, from 386.5x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 2.9% during FY23, from 1.7% 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 3.8% during FY23, from 2.7% 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 2.8% during FY23, from 1.7% 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	386.5	80.8
Debtors’ Days	Days	0	0
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.7	2.8
Return on equity	%	1.7	2.9
Return on capital employed	%	2.7	3.8

To see how WELSPUN INVESTMENTS has performed over the last 5 years, please visit here.

WELSPUN INVESTMENTS Share Price Performance

Over the last one year, WELSPUN INVESTMENTS share price has moved up from Rs 266.2 to Rs 266.5, registering a gain of Rs 0.3 or around 0.1%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for WELSPUN INVESTMENTS and quarterly results for WELSPUN INVESTMENTS)