WELSPUN INDIA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.
No. of Mths Year Ending | 12 Mar-18* | 12 Mar-19* | % Change | |
---|---|---|---|---|
Net Sales | Rs m | 60,494 | 65,266 | 7.9% |
Other income | Rs m | 812 | 818 | 0.7% |
Total Revenues | Rs m | 61,306 | 66,084 | 7.8% |
Gross profit | Rs m | 11,234 | 8,002 | -28.8% |
Depreciation | Rs m | 5,042 | 4,358 | -13.6% |
Interest | Rs m | 1,408 | 1,593 | 13.2% |
Profit before tax | Rs m | 5,597 | 2,869 | -48.7% |
Tax | Rs m | 1,615 | 608 | -62.4% |
Profit after tax | Rs m | 3,982 | 2,262 | -43.2% |
Gross profit margin | % | 18.6 | 12.3 | |
Effective tax rate | % | 28.9 | 21.2 | |
Net profit margin | % | 6.6 | 3.5 |
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No. of Mths Year Ending | 12 Mar-18* | 12 Mar-19* | % Change | |
---|---|---|---|---|
Networth | Rs m | 26,057 | 27,793 | 6.7 |
Current Liabilities | Rs m | 24,686 | 28,935 | 17.2 |
Long-term Debt | Rs m | 17,028 | 15,537 | -8.8 |
Total Liabilities | Rs m | 71,870 | 76,824 | 6.9 |
Current assets | Rs m | 35,108 | 36,306 | 3.4 |
Fixed Assets | Rs m | 36,762 | 40,518 | 10.2 |
Total Assets | Rs m | 71,870 | 76,824 | 6.9 |
Particulars | No. of months | 12 | 12 | % Change |
---|---|---|---|---|
Year Ending | Mar-18 | Mar-19 | ||
Cash Flow from Operating Activities | Rs m | 5,450 | 8,069 | 48.0% |
Cash Flow from Investing Activities | Rs m | -3,015 | -5,398 | - |
Cash Flow from Financing Activities | Rs m | -2,500 | -2,319 | - |
Net Cash Flow | Rs m | -47 | 352 | - |
No. of Mths Year Ending | 12 Mar-18* | 12 Mar-19* | |
---|---|---|---|
Sales per share (Unadj.) | Rs | 60.2 | 65.0 |
TTM Earnings per share | Rs | 4.0 | 2.3 |
Diluted earnings per share | Rs | 4.0 | 2.3 |
Price to Cash Flow | x | 6.3 | 9.4 |
TTM P/E ratio | x | 8.8 | 26.1 |
Price / Book Value ratio | x | 3.0 | 2.2 |
Market Cap | Rs m | 78,946 | 62,519 |
Dividends per share (Unadj.) | Rs | 0.7 | 0.3 |
Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.4x during FY18. 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 2.8x during FY19, from 5.0x during FY18. 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.
Return on Equity (ROE): The ROE for the company declined and down at 8.1% during FY19, from 15.3% during FY19. 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 10.3% during FY19, from 16.3% during FY18. 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 5.0% during FY19, from 7.5% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.
No. of Mths Year Ending | 12 Mar-18* | 12 Mar-19* | |
---|---|---|---|
Current ratio | x | 1.4 | 1.3 |
Debtors’ Days | Days | 56 | 60 |
Interest coverage | x | 5.0 | 2.8 |
Debt to equity ratio | x | 0.7 | 0.6 |
Return on assets | % | 7.5 | 5.0 |
Return on equity | % | 15.3 | 8.1 |
Return on capital employed | % | 16.3 | 10.3 |
To see how WELSPUN INDIA has performed over the last 5 years, please visit here.
Over the last one year, WELSPUN INDIA share price has moved up from Rs 58.0 to Rs 59.7, registering a gain of Rs 1.7 or around 2.9%.
Overall, the S&P BSE SENSEX is up 16.3% over the year.
(To know more, check out historical annual results for WELSPUN INDIA and quarterly results for WELSPUN INDIA)
WELSPUN INDIA currently trades at Rs 137.7 per share. You can check out the latest share price performance of WELSPUN INDIA here...
The revenues of WELSPUN INDIA stood at Rs 66,084 m in FY19, which was up 7.8% compared to Rs 61,306 m reported in FY18.
WELSPUN INDIA's revenue has grown from Rs 53,518 m in FY15 to Rs 66,084 m in FY19.
Over the past 5 years, the revenue of WELSPUN INDIA has grown at a CAGR of 5.4%.
The net profit of WELSPUN INDIA stood at Rs 2,262 m in FY19, which was down -43.2% compared to Rs 3,982 m reported in FY18.
This compares to a net profit of Rs 3,624 m in FY17 and a net profit of Rs 7,491 m in FY16.
Over the past 5 years, WELSPUN INDIA net profit has grown at a CAGR of -19.7%.
The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.
This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.
The cash flow statement of WELSPUN INDIA reveals:
Here's the cash flow statement of WELSPUN INDIA for the past 5 years.
(Rs m) | FY15 | FY16 | FY17 | FY18 | FY19 |
---|---|---|---|---|---|
From Operations | 9,391 | 13,280 | 8,322 | 5,450 | 8,069 |
From Investments | -6,071 | -8,011 | -7,124 | -3,015 | -5,398 |
From Financial Activity | -3,249 | -6,198 | -990 | -2,500 | -2,319 |
Net Cashflow | 79 | -929 | 178 | -47 | 352 |
Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.
The ratio/financial analysis of WELSPUN INDIA reveals:
Here's the ratio/financial analysis of WELSPUN INDIA for the past 5 years.
FY15 | FY16 | FY17 | FY18 | FY19 | |
---|---|---|---|---|---|
Operating Profit Margin (%) | 24.2 | 26.9 | 16.9 | 18.6 | 12.3 |
Net Profit Margin (%) | 10.4 | 12.7 | 5.5 | 6.6 | 3.5 |
Debt to Equity Ratio (x) | 1.1 | 0.9 | 0.8 | 0.7 | 0.6 |
Read: Latest Annual Report Analysis of WELSPUN LIVING
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1 Responses to "WELSPUN INDIA 2018-19 Annual Report Analysis"
Ajay Sanghi
Apr 1, 2020I am a long term investor in the Company and was attracted by its export volumes and apparent forward-looking management. But the performance of the Company has been disappointing. They are regularly mired in debt. The points of concern are :
1. Despite the accumulation of substantial debt, they continue to proceed with investments. These must be iun-necessary. Because the top line is virtually stagnant, despite the depreciating rupee.
2. It is not clear where these investments are headed. Are they going to Group Companies ?
3. There may be a SEBI type examination of the books soon,!if the Arms length compliances have not been maintained. This could be disastrous for share prices.
4. The Group website is not easy to navigate. They are discouraging access to their Balance Sheet. I might need to source the same from MCA by payment of 100/-.