WEBSOL ENERGY 2021-22 Annual Report Analysis

Fri, 7 Oct

WEBSOL ENERGY 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.

WEBSOL ENERGY Income Statement Analysis

• Operating income during the year rose 38.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 69.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY22 as against 58.2% in FY21.
• Depreciation charges decreased by 0.1% and finance costs decreased by 66.3% YoY, respectively.
• Other income grew by 6.4% YoY.
• Net profit for the year declined by 80.4% YoY.
• Net profit margins during the year declined from 32.2% in FY21 to 4.5% in FY22.

WEBSOL ENERGY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,536	2,132	38.8%
Other income	Rs m	43	46	6.4%
Total Revenues	Rs m	1,579	2,178	37.9%
Gross profit	Rs m	894	277	-69.1%
Depreciation	Rs m	154	153	-0.1%
Interest	Rs m	91	31	-66.3%
Profit before tax	Rs m	693	138	-80.0%
Tax	Rs m	199	42	-79.0%
Profit after tax	Rs m	494	97	-80.4%
Gross profit margin	%	58.2	13.0
Effective tax rate	%	28.7	30.1
Net profit margin	%	32.2	4.5

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WEBSOL ENERGY Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 630 million as compared to Rs 722 million in FY21, thereby witnessing an decrease of -12.7%.
• Long-term debt down at Rs 45 million as compared to Rs 127 million during FY21, a fall of 64.9%.
• Current assets rose 38% and stood at Rs 575 million, while fixed assets fell 6% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 1%.

WEBSOL ENERGY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,739	1,901	9.3
Current Liabilities	Rs m	722	630	-12.7
Long-term Debt	Rs m	127	45	-64.9
Total Liabilities	Rs m	2,843	2,860	0.6
Current assets	Rs m	415	575	38.5
Fixed Assets	Rs m	2,428	2,285	-5.9
Total Assets	Rs m	2,843	2,860	0.6

WEBSOL ENERGY Cash Flow Statement Analysis

• WEBSOL ENERGY's cash flow from operating activities (CFO) during FY22 stood at Rs -30 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -10 million, an improvement of 253.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 61 million, an improvement of 117% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 21 million from the Rs 11 million net cash flows seen during FY21.

WEBSOL ENERGY 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	362	-30	-
Cash Flow from Investing Activities	Rs m	-3	-10	-
Cash Flow from Financing Activities	Rs m	-348	61	-
Net Cash Flow	Rs m	11	21	86.1%

Current Valuations for WEBSOL ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 15.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 102.0, stands at -352.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	49.3	60.7
TTM Earnings per share	Rs	15.9	2.8
Diluted earnings per share	Rs	13.5	2.6
Price to Cash Flow	x	2.4	14.9
TTM P/E ratio	x	3.1	-352.6
Price / Book Value ratio	x	0.6	2.0
Market Cap	Rs m	979	3,730
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WEBSOL ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY22, from 0.6x 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 deteriorated and stood at 5.5x during FY22, from 8.6x 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 declined and down at 5.1% during FY22, from 28.4% 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 declined and down at 8.7% during FY22, from 42.0% 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 declined and down at 4.5% during FY22, from 20.6% 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	0.6	0.9
Debtors’ Days	Days	472	464
Interest coverage	x	8.6	5.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	20.6	4.5
Return on equity	%	28.4	5.1
Return on capital employed	%	42.0	8.7

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

WEBSOL ENERGY Share Price Performance

Over the last one year, WEBSOL ENERGY share price has moved up from Rs 67.3 to Rs 102.0, registering a gain of Rs 34.8 or around 51.7%.

Overall, the S&P BSE SENSEX is down 2.1% over the year.

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

Read: Latest Annual Report Analysis of WEBSOL ENERGY