WIM PLAST 2021-22 Annual Report Analysis

Tue, 26 Jul

WIM PLAST 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.

WIM PLAST Income Statement Analysis

• Operating income during the year rose 18.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.4% in FY22 as against 19.9% in FY21.
• Depreciation charges decreased by 9.4% and finance costs increased by 19.6% YoY, respectively.
• Other income grew by 50.6% YoY.
• Net profit for the year grew by 8.6% YoY.
• Net profit margins during the year declined from 11.9% in FY21 to 10.9% in FY22.

WIM PLAST Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,682	3,188	18.8%
Other income	Rs m	73	110	50.6%
Total Revenues	Rs m	2,755	3,297	19.7%
Gross profit	Rs m	533	523	-1.9%
Depreciation	Rs m	180	163	-9.4%
Interest	Rs m	2	2	19.6%
Profit before tax	Rs m	424	468	10.2%
Tax	Rs m	105	120	15.2%
Profit after tax	Rs m	320	347	8.6%
Gross profit margin	%	19.9	16.4
Effective tax rate	%	24.6	25.7
Net profit margin	%	11.9	10.9

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WIM PLAST Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 257 million as compared to Rs 336 million in FY21, thereby witnessing an decrease of -23.6%.
• Current assets rose 12% and stood at Rs 3 billion, while fixed assets fell 8% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 4 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 5%.

WIM PLAST Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,826	4,118	7.6
Current Liabilities	Rs m	336	257	-23.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,255	4,465	4.9
Current assets	Rs m	2,693	3,023	12.2
Fixed Assets	Rs m	1,562	1,442	-7.6
Total Assets	Rs m	4,255	4,465	4.9

WIM PLAST Cash Flow Statement Analysis

• WIM PLAST's cash flow from operating activities (CFO) during FY22 stood at Rs 256 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -208 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -63 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -15 million from the Rs 18 million net cash flows seen during FY21.

WIM PLAST 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	400	256	-36.0%
Cash Flow from Investing Activities	Rs m	-379	-208	-
Cash Flow from Financing Activities	Rs m	-3	-63	-
Net Cash Flow	Rs m	18	-15	-

Current Valuations for WIM PLAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.9, an improvement from the EPS of Rs 26.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 382.7, stands at 13.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.0 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	223.5	265.6
TTM Earnings per share	Rs	26.7	28.9
Diluted earnings per share	Rs	26.6	28.9
Price to Cash Flow	x	10.4	13.0
TTM P/E ratio	x	16.3	13.2
Price / Book Value ratio	x	1.2	1.6
Market Cap	Rs m	4,660	6,651
Dividends per share (Unadj.)	Rs	5.0	8.0

Ratio Analysis for WIM PLAST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 11.8x during FY22, from 8.0x 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 deteriorated and stood at 219.5x during FY22, from 238.1x 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 8.4% during FY22, from 8.4% 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 improved and stood at 11.4% during FY22, from 11.1% 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 improved and stood at 7.8% during FY22, from 7.6% 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	8.0	11.8
Debtors’ Days	Days	915	824
Interest coverage	x	238.1	219.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	7.8
Return on equity	%	8.4	8.4
Return on capital employed	%	11.1	11.4

To see how WIM PLAST has performed over the last 5 years, please visit here.

WIM PLAST Share Price Performance

Over the last one year, WIM PLAST share price has moved down from Rs 576.9 to Rs 382.7, registering a loss of Rs 194.2 or around 33.7%.

Overall, the S&P BSE SENSEX is up 5.1% over the year.

(To know more, check out historical annual results for WIM PLAST and quarterly results for WIM PLAST)