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WALCHANDNAGAR 2022-23 Annual Report Analysis

Thu, 24 Aug

WALCHANDNAGAR 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.

WALCHANDNAGAR Income Statement Analysis

• Operating income during the year rose 7.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 211.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.1% in FY23 as against 7.6% in FY22.
• Depreciation charges decreased by 16.0% and finance costs decreased by 22.6% YoY, respectively.
• Other income declined by 31.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 12.7% in FY22 to 6.1% in FY23.

WALCHANDNAGAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,992	3,221	7.7%
Other income	Rs m	327	223	-31.9%
Total Revenues	Rs m	3,319	3,444	3.8%
Gross profit	Rs m	229	713	211.5%
Depreciation	Rs m	222	187	-16.0%
Interest	Rs m	714	553	-22.6%
Profit before tax	Rs m	-381	196	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-381	196	NA
Gross profit margin	%	7.6	22.1
Effective tax rate	%	0.0	0.0
Net profit margin	%	-12.7	6.1

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WALCHANDNAGAR Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -3.1%.
• Long-term debt down at Rs 499 million as compared to Rs 2 billion during FY22, a fall of 70.6%.
• Current assets fell 7% and stood at Rs 5 billion, while fixed assets fell 19% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 11%.

WALCHANDNAGAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,770	2,604	47.1
Current Liabilities	Rs m	4,516	4,375	-3.1
Long-term Debt	Rs m	1,700	499	-70.6
Total Liabilities	Rs m	9,336	8,281	-11.3
Current assets	Rs m	5,256	4,890	-7.0
Fixed Assets	Rs m	4,080	3,325	-18.5
Total Assets	Rs m	9,336	8,281	-11.3

WALCHANDNAGAR Cash Flow Statement Analysis

• WALCHANDNAGAR's cash flow from operating activities (CFO) during FY23 stood at Rs 761 million, an improvement of 168.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 81 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -854 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -12 million from the Rs 0 million net cash flows seen during FY22.

WALCHANDNAGAR 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	284	761	168.4%
Cash Flow from Investing Activities	Rs m	255	81	-68.3%
Cash Flow from Financing Activities	Rs m	-539	-854	-
Net Cash Flow	Rs m	0	-12	-

Current Valuations for WALCHANDNAGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an improvement from the EPS of Rs -10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 99.9, stands at 18.8 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 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.5 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	78.6	70.1
TTM Earnings per share	Rs	-10.0	4.3
Diluted earnings per share	Rs	-8.3	4.3
Price to Cash Flow	x	-14.6	7.5
TTM P/E ratio	x	-6.1	18.8
Price / Book Value ratio	x	1.4	1.1
Market Cap	Rs m	2,499	2,886
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WALCHANDNAGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.2x 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 improved and stood at 1.4x during FY23, from 0.5x 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 improved and stood at 7.5% during FY23, from -21.5% 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 24.1% during FY23, from 9.6% 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 9.0% during FY23, from 3.6% 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	1.2	1.1
Debtors’ Days	Days	2,687	2,101
Interest coverage	x	0.5	1.4
Debt to equity ratio	x	1.0	0.2
Return on assets	%	3.6	9.0
Return on equity	%	-21.5	7.5
Return on capital employed	%	9.6	24.1

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

WALCHANDNAGAR Share Price Performance

Over the last one year, WALCHANDNAGAR share price has moved up from Rs 50.8 to Rs 99.9, registering a gain of Rs 49.2 or around 96.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 44,565.4 (down 0.3%). Over the last one year it has moved up from 31,587.7 to 44,565.4, a gain of 12,978 points (up 41.1%).

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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