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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of WOCKHARDT?

WOCKHARDT currently trades at Rs 230.2 per share. You can check out the latest share price performance of WOCKHARDT here...

What was the revenue of WOCKHARDT in FY21? How does it compare to earlier years?

The revenues of WOCKHARDT stood at Rs 29,155 m in FY21, which was down -13.9% compared to Rs 33,852 m reported in FY20.

WOCKHARDT's revenue has fallen from Rs 41,154 m in FY17 to Rs 29,155 m in FY21.

Over the past 5 years, the revenue of WOCKHARDT has grown at a CAGR of -8.3%.

What was the net profit of WOCKHARDT in FY21? How does it compare to earlier years?

The net profit of WOCKHARDT stood at Rs 6,886 m in FY21, which was down -1,687.0% compared to Rs -434 m reported in FY20.

This compares to a net loss of Rs -2,167 m in FY19 and a net loss of Rs -6,669 m in FY18.

Over the past 5 years, WOCKHARDT net profit has grown at a CAGR of NaN%.

What does the cash flow statement of WOCKHARDT reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of WOCKHARDT reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -2,873 m as compared to Rs 6,490 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 14,701 m as compared to Rs -1,555 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -11,708 m as compared to Rs -6,796 m in FY20.

Here's the cash flow statement of WOCKHARDT for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations-2,6956841,8336,490-2,873
From Investments-6,8666,302946-1,55514,701
From Financial Activity12,545-7,695-7,765-6,796-11,708
Net Cashflow3,007-664-4,999-1,780129

What does the Key Ratio analysis of WOCKHARDT reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of WOCKHARDT reveals:

  • Operating profit margins witnessed a fall and down at 45.5% in FY21 as against 7.3% in FY20.
  • Net profit margins grew from 1.3% in FY20 to 24.9% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.5 in FY20.

Here's the ratio/financial analysis of WOCKHARDT for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)0.7-9.12.67.345.5
Net Profit Margin (%)-5.6-16.9-5.2-1.324.9
Debt to Equity Ratio (x)1.00.80.70.50.2

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