WIRES & FABRIKS 2022-23 Annual Report Analysis

Fri, 30 Jun

WIRES & FABRIKS 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.

WIRES & FABRIKS Income Statement Analysis

• Operating income during the year rose 13.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 59.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in FY23 as against 12.1% in FY22.
• Depreciation charges increased by 41.0% and finance costs increased by 86.7% YoY, respectively.
• Other income grew by 9.4% YoY.
• Net profit for the year grew by 43.9% YoY.
• Net profit margins during the year grew from 1.0% in FY22 to 1.2% in FY23.

WIRES & FABRIKS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	957	1,083	13.1%
Other income	Rs m	6	7	9.4%
Total Revenues	Rs m	964	1,090	13.1%
Gross profit	Rs m	116	186	59.7%
Depreciation	Rs m	88	124	41.0%
Interest	Rs m	30	56	86.7%
Profit before tax	Rs m	5	13	174.0%
Tax	Rs m	-5	-1	NA
Profit after tax	Rs m	9	13	43.9%
Gross profit margin	%	12.1	17.1
Effective tax rate	%	-103.5	-6.9
Net profit margin	%	1.0	1.2

Emerging Opportunity: Bluechip Bull Run

WIRES & FABRIKS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 402 million as compared to Rs 407 million in FY22, thereby witnessing an decrease of -1.2%.
• Long-term debt down at Rs 563 million as compared to Rs 650 million during FY22, a fall of 13.3%.
• Current assets fell 9% and stood at Rs 597 million, while fixed assets fell 2% and stood at Rs 891 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 5%.

WIRES & FABRIKS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	462	474	2.6
Current Liabilities	Rs m	407	402	-1.2
Long-term Debt	Rs m	650	563	-13.3
Total Liabilities	Rs m	1,571	1,488	-5.3
Current assets	Rs m	659	597	-9.3
Fixed Assets	Rs m	912	891	-2.3
Total Assets	Rs m	1,571	1,488	-5.3

WIRES & FABRIKS Cash Flow Statement Analysis

• WIRES & FABRIKS's cash flow from operating activities (CFO) during FY23 stood at Rs 223 million, an improvement of 792.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -105 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -198 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -79 million from the Rs 80 million net cash flows seen during FY22.

WIRES & FABRIKS 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	25	223	792.6%
Cash Flow from Investing Activities	Rs m	-487	-105	-
Cash Flow from Financing Activities	Rs m	542	-198	-
Net Cash Flow	Rs m	80	-79	-

Current Valuations for WIRES & FABRIKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.4, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 175.1, stands at 39.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 2.8 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	312.9	353.9
TTM Earnings per share	Rs	3.0	4.4
Diluted earnings per share	Rs	3.0	4.4
Price to Cash Flow	x	2.9	2.8
TTM P/E ratio	x	30.7	39.9
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	254	385
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for WIRES & FABRIKS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.6x 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 1.2x during FY23, from 1.2x 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 2.8% during FY23, from 2.0% 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 6.6% during FY23, from 3.1% 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 4.7% during FY23, from 2.5% 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	1.6	1.5
Debtors’ Days	Days	901	724
Interest coverage	x	1.2	1.2
Debt to equity ratio	x	1.4	1.2
Return on assets	%	2.5	4.7
Return on equity	%	2.0	2.8
Return on capital employed	%	3.1	6.6

To see how WIRES & FABRIKS has performed over the last 5 years, please visit here.

WIRES & FABRIKS Share Price Performance

Over the last one year, WIRES & FABRIKS share price has moved up from Rs 91.0 to Rs 175.1, registering a gain of Rs 84.1 or around 92.4%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

(To know more, check out historical annual results for WIRES & FABRIKS and quarterly results for WIRES & FABRIKS)