WENDT (INDIA) 2017-18 Annual Report Analysis

Sat, 31 Mar

WENDT (INDIA) has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

WENDT (INDIA) Income Statement Analysis

• Operating income during the year rose 7.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.5% in FY18 as against 18.9% in FY17.
• Depreciation charges increased by 4.3% and finance costs increased by 21.8% YoY, respectively.
• Other income grew by 47.1% YoY.
• Net profit for the year grew by 8.9% YoY.
• Net profit margins during the year grew from 8.9% in FY17 to 9.1% in FY18.

WENDT (INDIA) Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	1,348	1,444	7.1%
Other income	Rs m	18	26	47.1%
Total Revenues	Rs m	1,366	1,471	7.6%
Gross profit	Rs m	255	267	4.8%
Depreciation	Rs m	100	104	4.3%
Interest	Rs m	7	9	21.8%
Profit before tax	Rs m	166	180	8.9%
Tax	Rs m	45	49	8.8%
Profit after tax	Rs m	121	131	8.9%
Gross profit margin	%	18.9	18.5
Effective tax rate	%	27.3	27.3
Net profit margin	%	8.9	9.1

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WENDT (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 343 million as compared to Rs 251 million in FY17, thereby witnessing an increase of 36.6%.
• Current assets rose 24% and stood at Rs 976 million, while fixed assets fell 6% and stood at Rs 623 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 2 billion as against Rs 1 billion during FY17, thereby witnessing a growth of 10%.

WENDT (INDIA) Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,123	1,216	8.3
Current Liabilities	Rs m	251	343	36.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,450	1,599	10.3
Current assets	Rs m	784	976	24.5
Fixed Assets	Rs m	666	623	-6.4
Total Assets	Rs m	1,450	1,599	10.3

WENDT (INDIA) Cash Flow Statement Analysis

• WENDT (INDIA)'s cash flow from operating activities (CFO) during FY18 stood at Rs 235 million, an improvement of 27.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -150 million, an improvement of 19.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -61 million, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 42 million from the Rs -4 million net cash flows seen during FY17.

WENDT (INDIA) Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	184	235	27.9%
Cash Flow from Investing Activities	Rs m	-126	-150	-
Cash Flow from Financing Activities	Rs m	-61	-61	-
Net Cash Flow	Rs m	-4	42	-

Current Valuations for WENDT (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 65.6, an improvement from the EPS of Rs 60.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,433.7, stands at 31.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 26.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	674.2	722.1
TTM Earnings per share	Rs	60.3	65.6
Diluted earnings per share	Rs	60.3	65.6
Price to Cash Flow	x	17.2	26.3
TTM P/E ratio	x	28.1	31.9
Price / Book Value ratio	x	3.4	5.1
Market Cap	Rs m	3,846	6,200
Dividends per share (Unadj.)	Rs	25.0	25.0

Ratio Analysis for WENDT (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY18, from 3.1x during FY17. 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 21.0x during FY18, from 23.4x during FY17. 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 10.8% during FY18, from 10.7% during FY18. 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 15.6% during FY18, from 15.4% during FY17. 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 8.8% during FY18, from 8.8% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	3.1	2.8
Debtors’ Days	Days	831	925
Interest coverage	x	23.4	21.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.8	8.8
Return on equity	%	10.7	10.8
Return on capital employed	%	15.4	15.6

To see how WENDT (INDIA) has performed over the last 5 years, please visit here.

WENDT (INDIA) Share Price Performance

Over the last one year, WENDT (INDIA) share price has moved up from Rs 1,900.0 to Rs 2,433.7, registering a gain of Rs 533.7 or around 28.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Read: Latest Annual Report Analysis of WENDT (INDIA)