WENDT (INDIA) 2022-23 Annual Report Analysis

Sat, 1 Jul

WENDT (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.

WENDT (INDIA) Income Statement Analysis

• Operating income during the year rose 17.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.9% in FY23 as against 23.5% in FY22.
• Depreciation charges decreased by 5.8% and finance costs decreased by 24.5% YoY, respectively.
• Other income grew by 25.0% YoY.
• Net profit for the year grew by 48.1% YoY.
• Net profit margins during the year grew from 15.1% in FY22 to 19.1% in FY23.

WENDT (INDIA) Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,788	2,102	17.6%
Other income	Rs m	41	51	25.0%
Total Revenues	Rs m	1,829	2,154	17.7%
Gross profit	Rs m	420	565	34.3%
Depreciation	Rs m	86	81	-5.8%
Interest	Rs m	6	5	-24.5%
Profit before tax	Rs m	369	530	43.7%
Tax	Rs m	98	129	31.4%
Profit after tax	Rs m	271	401	48.1%
Gross profit margin	%	23.5	26.9
Effective tax rate	%	26.7	24.4
Net profit margin	%	15.1	19.1

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WENDT (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 382 million as compared to Rs 405 million in FY22, thereby witnessing an decrease of -5.7%.
• Current assets rose 17% and stood at Rs 2 billion, while fixed assets rose 1% and stood at Rs 604 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 12%.

WENDT (INDIA) Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,620	1,887	16.5
Current Liabilities	Rs m	405	382	-5.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,039	2,286	12.1
Current assets	Rs m	1,441	1,682	16.8
Fixed Assets	Rs m	598	604	1.0
Total Assets	Rs m	2,039	2,286	12.1

WENDT (INDIA) Cash Flow Statement Analysis

• WENDT (INDIA)'s cash flow from operating activities (CFO) during FY23 stood at Rs 330 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -179 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -160 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -3 million from the Rs -9 million net cash flows seen during FY22.

WENDT (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	369	330	-10.5%
Cash Flow from Investing Activities	Rs m	-298	-179	-
Cash Flow from Financing Activities	Rs m	-80	-160	-
Net Cash Flow	Rs m	-9	-3	-

Current Valuations for WENDT (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 200.4, an improvement from the EPS of Rs 135.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10,327.8, stands at 51.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 9.8 times.
• The company's price to cash flow (P/CF) ratio stood at 29.4 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	894.1	1,051.2
TTM Earnings per share	Rs	135.3	200.4
Diluted earnings per share	Rs	135.3	200.4
Price to Cash Flow	x	28.0	29.4
TTM P/E ratio	x	36.9	51.5
Price / Book Value ratio	x	5.7	7.5
Market Cap	Rs m	9,309	14,183
Dividends per share (Unadj.)	Rs	65.0	80.0

Ratio Analysis for WENDT (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.4x during FY23, from 3.6x 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 improved and stood at 112.1x during FY23, from 59.4x 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 improved and stood at 21.2% during FY23, from 16.7% 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 improved and stood at 28.3% during FY23, from 23.2% 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 improved and stood at 17.7% during FY23, from 13.6% 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	3.6	4.4
Debtors’ Days	Days	702	700
Interest coverage	x	59.4	112.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.6	17.7
Return on equity	%	16.7	21.2
Return on capital employed	%	23.2	28.3

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 8,332.3 to Rs 10,327.8, registering a gain of Rs 1,995.5 or around 23.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,725.8 (up 1.7%). Over the last one year it has moved up from 26,027.1 to 40,725.8, a gain of 14,699 points (up 56.5%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

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