WPIL. 2022-23 Annual Report Analysis

Fri, 21 Jul

WPIL. 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.

WPIL. Income Statement Analysis

• Operating income during the year rose 51.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 54.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.0% in FY23 as against 17.6% in FY22.
• Depreciation charges decreased by 4.0% and finance costs increased by 24.1% YoY, respectively.
• Other income grew by 171.1% YoY.
• Net profit for the year grew by 86.4% YoY.
• Net profit margins during the year grew from 10.0% in FY22 to 12.3% in FY23.

WPIL. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,813	17,848	51.1%
Other income	Rs m	129	348	171.1%
Total Revenues	Rs m	11,941	18,196	52.4%
Gross profit	Rs m	2,073	3,206	54.6%
Depreciation	Rs m	373	358	-4.0%
Interest	Rs m	199	247	24.1%
Profit before tax	Rs m	1,631	2,950	80.9%
Tax	Rs m	450	750	66.4%
Profit after tax	Rs m	1,180	2,200	86.4%
Gross profit margin	%	17.6	18.0
Effective tax rate	%	27.6	25.4
Net profit margin	%	10.0	12.3

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WPIL. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 21.2%.
• Long-term debt down at Rs 911 million as compared to Rs 1 billion during FY22, a fall of 25.4%.
• Current assets rose 26% and stood at Rs 16 billion, while fixed assets rose 9% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 18 billion during FY22, thereby witnessing a growth of 21%.

WPIL. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,345	8,098	27.6
Current Liabilities	Rs m	9,265	11,230	21.2
Long-term Debt	Rs m	1,220	911	-25.4
Total Liabilities	Rs m	18,059	21,814	20.8
Current assets	Rs m	12,495	15,735	25.9
Fixed Assets	Rs m	5,564	6,078	9.2
Total Assets	Rs m	18,059	21,814	20.8

WPIL. Cash Flow Statement Analysis

• WPIL.'s cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 63.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -946 million, an improvement of 85.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -242 million from the Rs 301 million net cash flows seen during FY22.

WPIL. 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	1,146	1,872	63.4%
Cash Flow from Investing Activities	Rs m	-511	-946	-
Cash Flow from Financing Activities	Rs m	-354	-1,020	-
Net Cash Flow	Rs m	301	-242	-

Current Valuations for WPIL.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 225.2, an improvement from the EPS of Rs 120.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,852.3, stands at 12.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 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	1,209.1	1,826.8
TTM Earnings per share	Rs	120.8	225.2
Diluted earnings per share	Rs	120.8	225.3
Price to Cash Flow	x	5.3	6.5
TTM P/E ratio	x	7.0	12.8
Price / Book Value ratio	x	1.3	2.0
Market Cap	Rs m	8,163	16,580
Dividends per share (Unadj.)	Rs	10.0	20.0

Ratio Analysis for WPIL.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.3x 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 13.0x during FY23, from 9.2x 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 27.2% during FY23, from 18.6% 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 35.5% during FY23, from 24.2% 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 11.2% during FY23, from 7.6% 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	1.3	1.4
Debtors’ Days	Days	1,319	1,061
Interest coverage	x	9.2	13.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.6	11.2
Return on equity	%	18.6	27.2
Return on capital employed	%	24.2	35.5

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 1,049.3 to Rs 2,852.3, registering a gain of Rs 1,803.0 or around 171.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 42,401.9 (up 1.7%). Over the last one year it has moved up from 29,013.8 to 42,401.9, a gain of 13,388 points (up 46.1%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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