WPIL. 2021-22 Annual Report Analysis

Thu, 4 Aug

WPIL. 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.

WPIL. Income Statement Analysis

• Operating income during the year rose 18.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.4% in FY22 as against 14.8% in FY21.
• Depreciation charges increased by 0.8% and finance costs decreased by 11.8% YoY, respectively.
• Other income declined by 32.8% YoY.
• Net profit for the year grew by 53.3% YoY.
• Net profit margins during the year grew from 7.6% in FY21 to 9.9% in FY22.

WPIL. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,948	11,813	18.7%
Other income	Rs m	191	129	-32.8%
Total Revenues	Rs m	10,139	11,941	17.8%
Gross profit	Rs m	1,469	2,060	40.2%
Depreciation	Rs m	370	373	0.8%
Interest	Rs m	225	199	-11.8%
Profit before tax	Rs m	1,066	1,617	51.7%
Tax	Rs m	305	450	47.7%
Profit after tax	Rs m	761	1,167	53.3%
Gross profit margin	%	14.8	17.4
Effective tax rate	%	28.6	27.9
Net profit margin	%	7.6	9.9

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WPIL. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 30.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY21, a fall of 17.7%.
• Current assets rose 29% and stood at Rs 12 billion, while fixed assets rose 3% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 18 billion as against Rs 15 billion during FY21, thereby witnessing a growth of 20%.

WPIL. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,425	6,345	17.0
Current Liabilities	Rs m	7,102	9,265	30.5
Long-term Debt	Rs m	1,483	1,220	-17.7
Total Liabilities	Rs m	15,077	18,059	19.8
Current assets	Rs m	9,663	12,495	29.3
Fixed Assets	Rs m	5,414	5,564	2.8
Total Assets	Rs m	15,077	18,059	19.8

WPIL. Cash Flow Statement Analysis

• WPIL.'s cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -511 million, an improvement of 43.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -354 million, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 301 million from the Rs 489 million net cash flows seen during FY21.

WPIL. 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	2,297	1,146	-50.1%
Cash Flow from Investing Activities	Rs m	-357	-511	-
Cash Flow from Financing Activities	Rs m	-1,427	-354	-
Net Cash Flow	Rs m	489	301	-38.4%

Current Valuations for WPIL.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 119.4, an improvement from the EPS of Rs 77.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,169.0, stands at 9.8 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 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 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	1,018.3	1,209.1
TTM Earnings per share	Rs	77.9	119.4
Diluted earnings per share	Rs	77.9	119.4
Price to Cash Flow	x	5.1	5.3
TTM P/E ratio	x	7.6	9.8
Price / Book Value ratio	x	0.9	1.3
Market Cap	Rs m	4,776	8,163
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for WPIL.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.4x 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 9.1x during FY22, from 5.7x 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 18.4% during FY22, from 14.0% 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 24.0% during FY22, from 18.7% 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 7.6% during FY22, from 6.5% 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	1.4	1.3
Debtors’ Days	Days	1,196	1,319
Interest coverage	x	5.7	9.1
Debt to equity ratio	x	0.3	0.2
Return on assets	%	6.5	7.6
Return on equity	%	14.0	18.4
Return on capital employed	%	18.7	24.0

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

WPIL. Share Price Performance

Over the last one year, WPIL. share price has moved up from Rs 996.8 to Rs 1,169.0, registering a gain of Rs 172.3 or around 17.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 29,732.3 (down 0.3%). Over the last one year it has moved up from 23,849.9 to 29,732.3, a gain of 5,882 points (up 24.7%).

Overall, the S&P BSE SENSEX is up 10.1% over the year.

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

Read: Latest Annual Report Analysis of WPIL.