WELSPUN INDIA 2021-22 Annual Report Analysis

Tue, 23 Aug

WELSPUN INDIA 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.

WELSPUN INDIA Income Statement Analysis

• Operating income during the year rose 26.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.6% in FY22 as against 18.4% in FY21.
• Depreciation charges decreased by 7.3% and finance costs decreased by 33.5% YoY, respectively.
• Other income declined by 2.9% YoY.
• Net profit for the year grew by 10.1% YoY.
• Net profit margins during the year declined from 7.5% in FY21 to 6.5% in FY22.

WELSPUN INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	73,402	93,115	26.9%
Other income	Rs m	678	658	-2.9%
Total Revenues	Rs m	74,080	93,773	26.6%
Gross profit	Rs m	13,520	13,587	0.5%
Depreciation	Rs m	4,536	4,205	-7.3%
Interest	Rs m	1,975	1,312	-33.5%
Profit before tax	Rs m	7,686	8,728	13.6%
Tax	Rs m	2,179	2,663	22.2%
Profit after tax	Rs m	5,507	6,066	10.1%
Gross profit margin	%	18.4	14.6
Effective tax rate	%	28.3	30.5
Net profit margin	%	7.5	6.5

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WELSPUN INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 35 billion as compared to Rs 33 billion in FY21, thereby witnessing an increase of 7.1%.
• Long-term debt stood at Rs 11 billion as compared to Rs 10 billion during FY21, a growth of 8.6%.
• Current assets rose 10% and stood at Rs 48 billion, while fixed assets rose 7% and stood at Rs 45 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 93 billion as against Rs 86 billion during FY21, thereby witnessing a growth of 9%.

WELSPUN INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	36,447	39,691	8.9
Current Liabilities	Rs m	33,064	35,413	7.1
Long-term Debt	Rs m	9,705	10,536	8.6
Total Liabilities	Rs m	85,658	93,118	8.7
Current assets	Rs m	43,972	48,499	10.3
Fixed Assets	Rs m	41,685	44,619	7.0
Total Assets	Rs m	85,658	93,118	8.7

WELSPUN INDIA Cash Flow Statement Analysis

• WELSPUN INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 billion, an improvement of 510.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -547 million, an improvement of 93% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -676 million from the Rs 943 million net cash flows seen during FY21.

WELSPUN INDIA 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	9,536	5,867	-38.5%
Cash Flow from Investing Activities	Rs m	-983	-6,002	-
Cash Flow from Financing Activities	Rs m	-7,621	-547	-
Net Cash Flow	Rs m	943	-676	-

Current Valuations for WELSPUN INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.5, stands at 19.2 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 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.8 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	73.1	94.2
TTM Earnings per share	Rs	5.5	6.1
Diluted earnings per share	Rs	5.6	6.1
Price to Cash Flow	x	8.0	11.8
TTM P/E ratio	x	14.6	19.2
Price / Book Value ratio	x	1.5	3.1
Market Cap	Rs m	54,155	121,679
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for WELSPUN INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 1.3x 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 7.7x during FY22, from 4.9x 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 15.3% during FY22, from 15.1% 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 20.0% during FY22, from 20.9% 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 7.9% during FY22, from 8.7% 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	1.3	1.4
Debtors’ Days	Days	59	39
Interest coverage	x	4.9	7.7
Debt to equity ratio	x	0.3	0.3
Return on assets	%	8.7	7.9
Return on equity	%	15.1	15.3
Return on capital employed	%	20.9	20.0

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 down from Rs 126.2 to Rs 78.5, registering a loss of Rs 47.7 or around 37.8%.

Overall, the S&P BSE SENSEX is up 6.7% 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