WELSPUN INDIA 2017-18 Annual Report Analysis

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WELSPUN INDIA 2017-18 Annual Report Analysis
Mon, 13 Aug

WELSPUN INDIA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

WELSPUN INDIA Income Statement Analysis

  • Operating income during the year fell 8.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 29.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.6% in FY18 as against 23.8% in FY17.
  • Depreciation charges and finance costs decreased by 0.2% YoY and 11.1% YoY, respectively.
  • Other income grew by 0.8% YoY.
  • Net profit for the year grew by 9.9% YoY.
  • Net profit margins during the year grew from 5.4% in FY17 to 6.5% in FY18.

WELSPUN INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 66,405 60,506 -8.9%
Other income Rs m 806 812 0.8%
Total Revenues Rs m 67,211 61,318 -8.8%
Gross profit Rs m 15,834 11,234 -29.1%
Depreciation Rs m 5,054 5,042 -0.2%
Interest Rs m 1,583 1,408 -11.1%
Profit before tax Rs m 10,003 5,597 -44.0%
Tax Rs m 1,731 1,615 -6.7%
Profit after tax Rs m 3,624 3,982 9.9%
Gross profit margin % 23.8 18.6
Effective tax rate % 17.3 28.9
Net profit margin % 5.4 6.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



WELSPUN INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 25 billion as compared to Rs 24 billion in FY17, thereby witnessing an increase of 1.7%.
  • Long-term debt down at Rs 17 billion as compared to Rs 20 billion during FY17, a fall of 15.5%.
  • Current assets rose 2% and stood at Rs 35 billion, while fixed assets fell 5% and stood at Rs 35 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 72 billion as against Rs 73 billion during FY17, thereby witnessing a fall of 1%.

WELSPUN INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 24,976 27,061 8.3
 
Current Liabilities Rs m 24,275 24,686 1.7
Long-term Debt Rs m 20,160 17,029 -15.5
Total Liabilities Rs m 73,283 72,249 -1.4
 
Current assets Rs m 34,292 35,108 2.4
Fixed Assets Rs m 37,454 35,427 -5.4
Total Assets Rs m 73,283 72,249 -1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



WELSPUN INDIA Cash Flow Statement Analysis

  • WELSPUN INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -47 million from the Rs 178 million net cash flows seen during FY17.

WELSPUN INDIA Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 8,322 5,450 -34.5%
Cash Flow from Investing Activities Rs m -7,124 -3,015 -
Cash Flow from Financing Activities Rs m -990 -2,500 -
Net Cash Flow Rs m 178 -47 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for WELSPUN INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.6, an improvement from the EPS of Rs 36.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 64.7, stands at 11.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 660.9 602.2
TTM Earnings per share Rs 36.1 39.6
Diluted earnings per share Rs 3.6 4.0
Price to Cash Flow x 0.7 7.2
TTM P/E ratio x 1.2 11.9
Price / Book Value ratio x 0.3 0.3
Market Cap Rs m 6,500 64,959
Dividends per share (Unadj.) Rs 0.7 0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for WELSPUN INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.4x during FY17. 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 5.0x during FY18, from 7.3x during FY17. 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 14.7% during FY18, from 14.5% during FY18. 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 15.9% during FY18, from 15.4% during FY17. 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 7.5% during FY18, from 7.1% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.4 1.4
Debtors’ Days Days 53 56
Interest coverage x 7.3 5.0
Debt to equity ratio x 0.8 0.6
Return on assets % 7.1 7.5
Return on equity % 14.5 14.7
Return on capital employed % 15.4 15.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

WELSPUN INDIA Share Price Performance

Over the last one year, WELSPUN INDIA share price has moved up from Rs 69.0 to Rs 64.7, registering a loss of Rs 4.3 or around 6.2%.

Overall, the S&P BSE SENSEX is up 19.4% over the year.

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

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