WOCKHARDT 2021-22 Annual Report Analysis

Mon, 22 Aug

WOCKHARDT 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.

WOCKHARDT Income Statement Analysis

• Operating income during the year rose 19.3% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.6% in FY22 as against 7.6% in FY21.
• Depreciation charges increased by 0.4% and finance costs increased by 20.1% YoY, respectively.
• Other income declined by 84.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 11.0% in FY21 to 8.6% in FY22.

WOCKHARDT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	27,080	32,300	19.3%
Other income	Rs m	1,320	200	-84.8%
Total Revenues	Rs m	28,400	32,500	14.4%
Gross profit	Rs m	-2,050	1,150	NA
Depreciation	Rs m	2,460	2,470	0.4%
Interest	Rs m	2,490	2,990	20.1%
Profit before tax	Rs m	-5,680	-4,110	NA
Tax	Rs m	-2,710	-1,320	NA
Profit after tax	Rs m	-2,970	-2,790	NA
Gross profit margin	%	-7.6	3.6
Effective tax rate	%	47.7	32.1
Net profit margin	%	-11.0	-8.6

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WOCKHARDT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 32 billion as compared to Rs 31 billion in FY21, thereby witnessing an increase of 2.8%.
• Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY21, a fall of 29.4%.
• Current assets rose 7% and stood at Rs 26 billion, while fixed assets rose 3% and stood at Rs 51 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 77 billion as against Rs 74 billion during FY21, thereby witnessing a growth of 4%.

WOCKHARDT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	33,480	38,310	14.4
Current Liabilities	Rs m	31,210	32,070	2.8
Long-term Debt	Rs m	5,030	3,550	-29.4
Total Liabilities	Rs m	73,760	76,700	4.0
Current assets	Rs m	24,250	25,890	6.8
Fixed Assets	Rs m	49,510	50,810	2.6
Total Assets	Rs m	73,760	76,700	4.0

WOCKHARDT Cash Flow Statement Analysis

• WOCKHARDT's cash flow from operating activities (CFO) during FY22 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -710 million, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 billion from the Rs 130 million net cash flows seen during FY21.

WOCKHARDT 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	-2,870	4,130	-
Cash Flow from Investing Activities	Rs m	14,700	-2,010	-
Cash Flow from Financing Activities	Rs m	-11,710	-710	-
Net Cash Flow	Rs m	130	1,380	961.5%

Current Valuations for WOCKHARDT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -19.4, an improvement from the EPS of Rs -26.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 261.1, stands at -10.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -238.0 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	244.4	224.3
TTM Earnings per share	Rs	-26.8	-19.4
Diluted earnings per share	Rs	-20.6	-19.4
Price to Cash Flow	x	-117.0	-238.0
TTM P/E ratio	x	-20.1	-10.8
Price / Book Value ratio	x	1.2	2.0
Market Cap	Rs m	41,188	76,168
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 FY22, from 0.8x 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 improved and stood at -0.4x during FY22, from -1.3x 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 -7.3% during FY22, from -8.9% 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 -2.7% during FY22, from -8.3% 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 0.3% during FY22, from -0.7% 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	0.8	0.8
Debtors’ Days	Days	12	10
Interest coverage	x	-1.3	-0.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	-0.7	0.3
Return on equity	%	-8.9	-7.3
Return on capital employed	%	-8.3	-2.7

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 down from Rs 454.2 to Rs 261.1, registering a loss of Rs 193.1 or around 42.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,715.1 (down 1.2%). Over the last one year it has moved down from 25,678.4 to 22,715.1, a loss of 2,963 points (down 11.5%).

Overall, the S&P BSE SENSEX is up 5.9% 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