WALCHAND PEOPLE 2021-22 Annual Report Analysis

Wed, 22 Jun

WALCHAND PEOPLE 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.

WALCHAND PEOPLE Income Statement Analysis

• Operating income during the year rose 101.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 183.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.2% in FY22 as against 19.8% in FY21.
• Depreciation charges decreased by 35.6% and finance costs decreased by 20.8% YoY, respectively.
• Other income declined by 23.1% YoY.
• Net profit for the year declined by 1218.8% YoY.
• Net profit margins during the year grew from 1.9% in FY21 to 10.4% in FY22.

WALCHAND PEOPLE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	88	178	101.9%
Other income	Rs m	21	16	-23.1%
Total Revenues	Rs m	109	194	77.8%
Gross profit	Rs m	-17	15	-183.3%
Depreciation	Rs m	5	3	-35.6%
Interest	Rs m	0	0	-20.8%
Profit before tax	Rs m	-2	27	-1,515.1%
Tax	Rs m	0	9	-3,325.9%
Profit after tax	Rs m	-2	18	-1,218.8%
Gross profit margin	%	-19.8	8.2
Effective tax rate	%	14.1	32.1
Net profit margin	%	-1.9	10.4

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WALCHAND PEOPLE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 38 million as compared to Rs 25 million in FY21, thereby witnessing an increase of 51.3%.
• Long-term debt stood at Rs 5 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets fell 5% and stood at Rs 139 million, while fixed assets rose 79% and stood at Rs 116 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 255 million as against Rs 211 million during FY21, thereby witnessing a growth of 21%.

WALCHAND PEOPLE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	175	195	11.1
Current Liabilities	Rs m	25	38	51.3
Long-term Debt	Rs m	0	5	0.0
Total Liabilities	Rs m	211	255	20.8
Current assets	Rs m	146	139	-5.0
Fixed Assets	Rs m	65	116	79.4
Total Assets	Rs m	211	255	20.8

WALCHAND PEOPLE Cash Flow Statement Analysis

• WALCHAND PEOPLE 's cash flow from operating activities (CFO) during FY22 stood at Rs 36 million, an improvement of 277.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -39 million, an improvement of 244.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 6 million, an improvement of 3,569% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 million from the Rs -2 million net cash flows seen during FY21.

WALCHAND PEOPLE 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	10	36	277.0%
Cash Flow from Investing Activities	Rs m	-11	-39	-
Cash Flow from Financing Activities	Rs m	0	6	-
Net Cash Flow	Rs m	-2	3	-

Current Valuations for WALCHAND PEOPLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.4, an improvement from the EPS of Rs -0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 120.3, stands at 18.9 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 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 16.4 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	30.4	61.4
TTM Earnings per share	Rs	-0.6	6.4
Diluted earnings per share	Rs	-0.6	6.4
Price to Cash Flow	x	46.7	16.4
TTM P/E ratio	x	-105.8	18.9
Price / Book Value ratio	x	0.9	1.8
Market Cap	Rs m	150	360
Dividends per share (Unadj.)	Rs	0.0	1.3

Ratio Analysis for WALCHAND PEOPLE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.7x during FY22, from 5.9x 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 144.0x during FY22, from -7.0x 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 9.5% during FY22, from -0.9% 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 13.7% during FY22, from -1.0% 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 7.3% during FY22, from -0.7% 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	5.9	3.7
Debtors’ Days	Days	983	503
Interest coverage	x	-7.0	144.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.7	7.3
Return on equity	%	-0.9	9.5
Return on capital employed	%	-1.0	13.7

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

WALCHAND PEOPLE Share Price Performance

Over the last one year, WALCHAND PEOPLE share price has moved up from Rs 82.5 to Rs 120.3, registering a gain of Rs 37.8 or around 45.8%.

Overall, the S&P BSE SENSEX is down 1.4% over the year.

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

Read: Latest Annual Report Analysis of WALCHAND PEOPLE