WOCKHARDT 2020-21 Annual Report Analysis

Wed, 31 Mar

WOCKHARDT has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

WOCKHARDT Income Statement Analysis

• Operating income during the year fell 16.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 417.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 45.5% in FY21 as against 7.3% in FY20.
• Depreciation charges increased by 9.8% and finance costs decreased by 9.7% YoY, respectively.
• Other income grew by 155.4% YoY.
• Net profit for the year declined by 1687.0% YoY.
• Net profit margins during the year grew from 1.3% in FY20 to 24.9% in FY21.

WOCKHARDT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	33,252	27,620	-16.9%
Other income	Rs m	601	1,534	155.4%
Total Revenues	Rs m	33,852	29,155	-13.9%
Gross profit	Rs m	2,431	12,575	417.2%
Depreciation	Rs m	2,241	2,460	9.8%
Interest	Rs m	2,757	2,491	-9.7%
Profit before tax	Rs m	-1,967	9,159	-565.7%
Tax	Rs m	-1,533	2,273	-248.2%
Profit after tax	Rs m	-434	6,886	-1,687.0%
Gross profit margin	%	7.3	45.5
Effective tax rate	%	77.9	24.8
Net profit margin	%	-1.3	24.9

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WOCKHARDT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 31 billion as compared to Rs 35 billion in FY20, thereby witnessing an decrease of -10.8%.
• Long-term debt down at Rs 5 billion as compared to Rs 12 billion during FY20, a fall of 59.5%.
• Current assets fell 0% and stood at Rs 24 billion, while fixed assets fell 7% and stood at Rs 50 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 74 billion as against Rs 77 billion during FY20, thereby witnessing a fall of 5%.

WOCKHARDT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	26,417	33,492	26.8
Current Liabilities	Rs m	34,972	31,182	-10.8
Long-term Debt	Rs m	12,409	5,029	-59.5
Total Liabilities	Rs m	77,495	73,752	-4.8
Current assets	Rs m	24,298	24,244	-0.2
Fixed Assets	Rs m	53,197	49,508	-6.9
Total Assets	Rs m	77,495	73,752	-4.8

WOCKHARDT Cash Flow Statement Analysis

• WOCKHARDT's cash flow from operating activities (CFO) during FY21 stood at Rs -3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 15 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -12 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 129 million from the Rs -2 billion net cash flows seen during FY20.

WOCKHARDT Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	6,490	-2,873	-
Cash Flow from Investing Activities	Rs m	-1,555	14,701	-
Cash Flow from Financing Activities	Rs m	-6,796	-11,708	-
Net Cash Flow	Rs m	-1,780	129	-

Current Valuations for WOCKHARDT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 62.2, an improvement from the EPS of Rs -3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 414.4, stands at -20.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 4.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	300.3	249.3
TTM Earnings per share	Rs	-3.9	62.2
Diluted earnings per share	Rs	-3.0	47.8
Price to Cash Flow	x	13.8	4.4
TTM P/E ratio	x	-39.4	-20.1
Price / Book Value ratio	x	1.3	1.2
Market Cap	Rs m	34,201	41,188
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WOCKHARDT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY21, from 0.7x during FY20. 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 4.7x during FY21, from 0.3x during FY20. 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 20.6% during FY21, from -1.6% during FY21. 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 30.2% during FY21, from 2.0% during FY20. 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 12.7% during FY21, from 3.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.7	0.8
Debtors’ Days	Days	14	12
Interest coverage	x	0.3	4.7
Debt to equity ratio	x	0.5	0.2
Return on assets	%	3.0	12.7
Return on equity	%	-1.6	20.6
Return on capital employed	%	2.0	30.2

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

WOCKHARDT Share Price Performance

Over the last one year, WOCKHARDT share price has moved up from Rs 172.8 to Rs 414.4, registering a gain of Rs 241.6 or around 139.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of WOCKHARDT