WELSPUN INDIA 2022-23 Annual Report Analysis

Mon, 6 Nov

WELSPUN INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

WELSPUN INDIA Income Statement Analysis

• Operating income during the year fell 13.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY23 as against 14.6% in FY22.
• Depreciation charges increased by 5.2% and finance costs decreased by 1.0% YoY, respectively.
• Other income grew by 84.3% YoY.
• Net profit for the year declined by 66.6% YoY.
• Net profit margins during the year declined from 6.5% in FY22 to 2.5% in FY23.

WELSPUN INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	93,115	80,938	-13.1%
Other income	Rs m	658	1,213	84.3%
Total Revenues	Rs m	93,773	82,151	-12.4%
Gross profit	Rs m	13,589	7,526	-44.6%
Depreciation	Rs m	4,205	4,421	5.2%
Interest	Rs m	1,313	1,299	-1.0%
Profit before tax	Rs m	8,730	3,019	-65.4%
Tax	Rs m	2,663	994	-62.7%
Profit after tax	Rs m	6,067	2,025	-66.6%
Gross profit margin	%	14.6	9.3
Effective tax rate	%	30.5	32.9
Net profit margin	%	6.5	2.5

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

WELSPUN INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 27 billion as compared to Rs 35 billion in FY22, thereby witnessing an decrease of -24.7%.
• Long-term debt down at Rs 10 billion as compared to Rs 11 billion during FY22, a fall of 7.8%.
• Current assets fell 9% and stood at Rs 44 billion, while fixed assets fell 8% and stood at Rs 41 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 85 billion as against Rs 93 billion during FY22, thereby witnessing a fall of 8%.

WELSPUN INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	39,691	40,834	2.9
Current Liabilities	Rs m	35,412	26,670	-24.7
Long-term Debt	Rs m	10,536	9,720	-7.8
Total Liabilities	Rs m	93,118	85,274	-8.4
Current assets	Rs m	48,499	44,181	-8.9
Fixed Assets	Rs m	44,619	41,093	-7.9
Total Assets	Rs m	93,118	85,274	-8.4

WELSPUN INDIA Cash Flow Statement Analysis

• WELSPUN INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 28.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -11 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -857 million from the Rs -676 million net cash flows seen during FY22.

WELSPUN INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	5,867	7,560	28.9%
Cash Flow from Investing Activities	Rs m	-6,002	2,428	-
Cash Flow from Financing Activities	Rs m	-547	-10,860	-
Net Cash Flow	Rs m	-676	-857	-

Current Valuations for WELSPUN INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.0, an decline from the EPS of Rs 6.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 148.0, stands at 26.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	94.2	81.9
TTM Earnings per share	Rs	6.1	2.0
Diluted earnings per share	Rs	6.2	2.1
Price to Cash Flow	x	8.6	12.4
TTM P/E ratio	x	14.6	26.8
Price / Book Value ratio	x	3.1	2.0
Market Cap	Rs m	121,679	79,638
Dividends per share (Unadj.)	Rs	0.2	0.1

Ratio Analysis for WELSPUN INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.4x during FY22. 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 3.3x during FY23, from 7.7x during FY22. 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 5.0% during FY23, from 15.3% during FY23. 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 8.5% during FY23, from 20.0% during FY22. 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 3.9% during FY23, from 7.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.7
Debtors’ Days	Days	4	4
Interest coverage	x	7.7	3.3
Debt to equity ratio	x	0.3	0.2
Return on assets	%	7.9	3.9
Return on equity	%	15.3	5.0
Return on capital employed	%	20.0	8.5

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 78.6 to Rs 148.0, registering a gain of Rs 69.5 or around 88.4%.

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)