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WELSPUN CORP 2018-19 Annual Report Analysis
Sun, 31 Mar

WELSPUN CORP has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

WELSPUN CORP Income Statement Analysis

  • Operating income during the year rose 39.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 35.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.4% in FY19 as against 7.3% in FY18.
  • Depreciation charges increased by 0.6% and finance costs increased by 4.2% YoY, respectively.
  • Other income grew by 4.5% YoY.
  • Net profit for the year declined by 72.0% YoY.
  • Net profit margins during the year declined from 3.2% in FY18 to 0.6% in FY19.

WELSPUN CORP Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 75,587 105,237 39.2%
Other income Rs m 1,288 1,346 4.5%
Total Revenues Rs m 76,875 106,583 38.6%
Gross profit Rs m 5,496 3,535 -35.7%
Depreciation Rs m 2,582 2,597 0.6%
Interest Rs m 1,702 1,774 4.2%
Profit before tax Rs m 2,501 510 -79.6%
Tax Rs m 112 -159 -241.9%
Profit after tax Rs m 2,389 669 -72.0%
Gross profit margin % 7.3 3.4
Effective tax rate % 4.5 -31.1
Net profit margin % 3.2 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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WELSPUN CORP Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 40 billion as compared to Rs 29 billion in FY18, thereby witnessing an increase of 40.7%.
  • Long-term debt down at Rs 11 billion as compared to Rs 13 billion during FY18, a fall of 15.3%.
  • Current assets rose 48% and stood at Rs 63 billion, while fixed assets fell 43% and stood at Rs 20 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 83 billion as against Rs 78 billion during FY18, thereby witnessing a growth of 7%.

WELSPUN CORP Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 28,540 27,934 -2.1
 
Current Liabilities Rs m 28,652 40,303 40.7
Long-term Debt Rs m 12,717 10,778 -15.3
Total Liabilities Rs m 77,901 83,037 6.6
 
Current assets Rs m 42,196 62,601 48.4
Fixed Assets Rs m 35,705 20,436 -42.8
Total Assets Rs m 77,901 83,037 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



WELSPUN CORP Cash Flow Statement Analysis

  • WELSPUN CORP's cash flow from operating activities (CFO) during FY19 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -3 billion, an improvement of 56% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 334 million from the Rs 4 billion net cash flows seen during FY18.

WELSPUN CORP Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 9,814 6,233 -36.5%
Cash Flow from Investing Activities Rs m 1,823 -2,822 -
Cash Flow from Financing Activities Rs m -7,609 -3,353 -
Net Cash Flow Rs m 4,047 334 -91.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for WELSPUN CORP

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an decline from the EPS of Rs 9.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 135.7, stands at 60.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 285.0 396.8
TTM Earnings per share Rs 9.0 2.5
Diluted earnings per share Rs 9.2 2.6
Price to Cash Flow x 7.1 11.2
TTM P/E ratio x 14.7 60.6
Price / Book Value ratio x 1.3 1.3
Market Cap Rs m 36,866 36,628
Dividends per share (Unadj.) Rs 0.5 0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for WELSPUN CORP

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY19, from 1.5x during FY18. 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 deteriorated and stood at 1.3x during FY19, from 2.5x during FY18. 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 declined and down at 2.4% during FY19, from 8.4% during FY19. 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 declined and down at 5.9% during FY19, from 10.2% during FY18. 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 declined and down at 2.9% during FY19, from 5.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.5 1.6
Debtors’ Days Days 63 41
Interest coverage x 2.5 1.3
Debt to equity ratio x 0.4 0.4
Return on assets % 5.3 2.9
Return on equity % 8.4 2.4
Return on capital employed % 10.2 5.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

WELSPUN CORP Share Price Performance

Over the last one year, WELSPUN CORP share price has moved up from Rs 134.6 to Rs 135.7, registering a gain of Rs 1.1 or around 0.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for WELSPUN CORP and quarterly results for WELSPUN CORP)

Annual Report FAQs

What is the current share price of WELSPUN CORP?

WELSPUN CORP currently trades at Rs 517.9 per share. You can check out the latest share price performance of WELSPUN CORP here...

What was the revenue of WELSPUN CORP in FY19? How does it compare to earlier years?

The revenues of WELSPUN CORP stood at Rs 106,583 m in FY19, which was up 38.6% compared to Rs 76,875 m reported in FY18.

WELSPUN CORP's revenue has grown from Rs 72,042 m in FY16 to Rs 106,583 m in FY19.

Over the past 4 years, the revenue of WELSPUN CORP has grown at a CAGR of 13.9%.

What was the net profit of WELSPUN CORP in FY19? How does it compare to earlier years?

The net profit of WELSPUN CORP stood at Rs 669 m in FY19, which was down -72.0% compared to Rs 2,389 m reported in FY18.

This compares to a net profit of Rs 894 m in FY17 and a net profit of Rs 1,840 m in FY16.

Over the past 4 years, WELSPUN CORP net profit has grown at a CAGR of -28.6%.

What does the cash flow statement of WELSPUN CORP 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 WELSPUN CORP reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 6,233 m as compared to Rs 9,814 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -2,822 m as compared to Rs 1,823 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -3,353 m as compared to Rs -7,609 m in FY18.

Here's the cash flow statement of WELSPUN CORP for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations3,5434,0259,8146,233
From Investments-3,3086,1901,823-2,822
From Financial Activity-987-9,787-7,609-3,353
Net Cashflow-7084194,047334

What does the Key Ratio analysis of WELSPUN CORP 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 WELSPUN CORP reveals:

  • Operating profit margins witnessed a fall and stood at 3.4% in FY19 as against 7.3% in FY18.
  • Net profit margins declined from 3.2% in FY18 to 0.6% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.4 as compared to 0.4 in FY18.

Here's the ratio/financial analysis of WELSPUN CORP for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)11.08.97.33.4
Net Profit Margin (%)2.61.63.20.6
Debt to Equity Ratio (x)0.70.50.40.4

Read: Latest Annual Report Analysis of WELSPUN CORP

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