WELSPUN INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

WELSPUN INDIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

WELSPUN INDIA Income Statement Analysis

• Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.4% in FY21 as against 18.7% in FY20.
• Depreciation charges decreased by 5.7% and finance costs increased by 11.1% YoY, respectively.
• Other income declined by 28.7% YoY.
• Net profit for the year grew by 5.0% YoY.
• Net profit margins during the year declined from 7.8% in FY20 to 7.5% in FY21.

WELSPUN INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	67,411	73,402	8.9%
Other income	Rs m	951	678	-28.7%
Total Revenues	Rs m	68,362	74,080	8.4%
Gross profit	Rs m	12,581	13,520	7.5%
Depreciation	Rs m	4,811	4,536	-5.7%
Interest	Rs m	1,777	1,975	11.1%
Profit before tax	Rs m	6,944	7,686	10.7%
Tax	Rs m	1,700	2,179	28.2%
Profit after tax	Rs m	5,244	5,507	5.0%
Gross profit margin	%	18.7	18.4
Effective tax rate	%	24.5	28.3
Net profit margin	%	7.8	7.5

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WELSPUN INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 33 billion as compared to Rs 33 billion in FY20, thereby witnessing an decrease of -1.2%.
• Long-term debt down at Rs 10 billion as compared to Rs 14 billion during FY20, a fall of 31.0%.
• Current assets rose 11% and stood at Rs 44 billion, while fixed assets fell 1% and stood at Rs 42 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 86 billion as against Rs 82 billion during FY20, thereby witnessing a growth of 5%.

WELSPUN INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	29,721	36,447	22.6
Current Liabilities	Rs m	33,467	33,064	-1.2
Long-term Debt	Rs m	14,070	9,705	-31.0
Total Liabilities	Rs m	81,941	85,658	4.5
Current assets	Rs m	39,685	43,972	10.8
Fixed Assets	Rs m	42,256	41,685	-1.4
Total Assets	Rs m	81,941	85,658	4.5

WELSPUN INDIA Cash Flow Statement Analysis

• WELSPUN INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 10 billion, an improvement of 22.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -983 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 943 million from the Rs 507 million net cash flows seen during FY20.

WELSPUN INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	7,772	9,536	22.7%
Cash Flow from Investing Activities	Rs m	-4,593	-983	-
Cash Flow from Financing Activities	Rs m	-2,689	-7,621	-
Net Cash Flow	Rs m	507	943	85.9%

Current Valuations for WELSPUN INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.5, an improvement from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 81.1, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	67.1	73.1
TTM Earnings per share	Rs	5.2	5.5
Diluted earnings per share	Rs	5.3	5.6
Price to Cash Flow	x	2.1	5.4
TTM P/E ratio	x	4.1	14.6
Price / Book Value ratio	x	1.4	1.5
Market Cap	Rs m	40,440	54,155
Dividends per share (Unadj.)	Rs	1.0	0.2

Ratio Analysis for WELSPUN INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.2x during FY20. 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 4.9x during FY21, from 4.9x during FY20. 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 15.1% during FY21, from 17.6% during FY21. 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 20.9% during FY21, from 19.9% during FY20. 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 8.7% during FY21, from 8.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.2	1.3
Debtors’ Days	Days	59	59
Interest coverage	x	4.9	4.9
Debt to equity ratio	x	0.5	0.3
Return on assets	%	8.6	8.7
Return on equity	%	17.6	15.1
Return on capital employed	%	19.9	20.9

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 21.8 to Rs 81.1, registering a gain of Rs 59.3 or around 272.0%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of WELSPUN LIVING