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WELSPUN CORP 2020-21 Annual Report Analysis
Wed, 31 Mar

WELSPUN CORP has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

WELSPUN CORP Income Statement Analysis

  • Operating income during the year fell 35.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 31.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.3% in FY21 as against 10.5% in FY20.
  • Depreciation charges decreased by 8.0% and finance costs decreased by 53.0% YoY, respectively.
  • Other income grew by 103.1% YoY.
  • Net profit for the year grew by 10.6% YoY.
  • Net profit margins during the year grew from 4.3% in FY20 to 7.3% in FY21.

WELSPUN CORP Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 105,031 67,472 -35.8%
Other income Rs m 1,159 2,354 103.1%
Total Revenues Rs m 106,190 69,826 -34.2%
Gross profit Rs m 11,051 7,601 -31.2%
Depreciation Rs m 2,333 2,146 -8.0%
Interest Rs m 1,440 676 -53.0%
Profit before tax Rs m 8,437 7,133 -15.5%
Tax Rs m 3,957 2,176 -45.0%
Profit after tax Rs m 4,480 4,957 10.6%
Gross profit margin % 10.5 11.3
Effective tax rate % 46.9 30.5
Net profit margin % 4.3 7.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

WELSPUN CORP Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 21 billion as compared to Rs 40 billion in FY20, thereby witnessing an decrease of -46.9%.
  • Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY20, a fall of 14.5%.
  • Current assets fell 29% and stood at Rs 42 billion, while fixed assets rose 9% and stood at Rs 24 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 67 billion as against Rs 82 billion during FY20, thereby witnessing a fall of 19%.

WELSPUN CORP Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 32,062 37,822 18.0
 
Current Liabilities Rs m 39,843 21,154 -46.9
Long-term Debt Rs m 5,108 4,365 -14.5
Total Liabilities Rs m 82,160 66,643 -18.9
 
Current assets Rs m 60,091 42,480 -29.3
Fixed Assets Rs m 22,070 24,164 9.5
Total Assets Rs m 82,160 66,643 -18.9
* 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 FY21 stood at Rs 7 billion, an improvement of 10.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -8 billion, an improvement of 943.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 77% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -3 billion from the Rs -1 billion net cash flows seen during FY20.

WELSPUN CORP Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 6,481 7,127 10.0%
Cash Flow from Investing Activities Rs m -774 -8,077 -
Cash Flow from Financing Activities Rs m -7,431 -1,740 -
Net Cash Flow Rs m -1,439 -2,715 -
* 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 19.0, an improvement from the EPS of Rs 17.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 139.2, stands at 7.2 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 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 402.6 258.6
TTM Earnings per share Rs 17.2 19.0
Diluted earnings per share Rs 17.2 19.0
Price to Cash Flow x 2.4 3.7
TTM P/E ratio x 3.3 7.2
Price / Book Value ratio x 1.2 0.7
Market Cap Rs m 38,330 26,154
Dividends per share (Unadj.) Rs 10.5 5.0
* 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 2.0x during FY21, from 1.5x during FY20. 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 11.5x during FY21, from 6.9x during FY20. 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 13.1% during FY21, from 14.0% during FY21. 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 18.5% during FY21, from 26.6% during FY20. 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 8.5% during FY21, from 7.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.5 2.0
Debtors’ Days Days 43 35
Interest coverage x 6.9 11.5
Debt to equity ratio x 0.2 0.1
Return on assets % 7.2 8.5
Return on equity % 14.0 13.1
Return on capital employed % 26.6 18.5
* 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 62.4 to Rs 139.2, registering a gain of Rs 76.8 or around 123.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% 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 516.0 per share. You can check out the latest share price performance of WELSPUN CORP here...

What was the revenue of WELSPUN CORP in FY21? How does it compare to earlier years?

The revenues of WELSPUN CORP stood at Rs 69,826 m in FY21, which was down -34.2% compared to Rs 106,190 m reported in FY20.

WELSPUN CORP's revenue has grown from Rs 59,866 m in FY17 to Rs 69,826 m in FY21.

Over the past 5 years, the revenue of WELSPUN CORP has grown at a CAGR of 3.9%.

What was the net profit of WELSPUN CORP in FY21? How does it compare to earlier years?

The net profit of WELSPUN CORP stood at Rs 4,957 m in FY21, which was up 10.6% compared to Rs 4,480 m reported in FY20.

This compares to a net profit of Rs 669 m in FY19 and a net profit of Rs 2,389 m in FY18.

Over the past 5 years, WELSPUN CORP net profit has grown at a CAGR of 53.4%.

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 increased in FY21 and stood at Rs 7,127 m as compared to Rs 6,481 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -8,077 m as compared to Rs -774 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -1,740 m as compared to Rs -7,431 m in FY20.

Here's the cash flow statement of WELSPUN CORP for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations4,0259,8146,2336,4817,127
From Investments6,1901,823-2,822-774-8,077
From Financial Activity-9,787-7,609-3,353-7,431-1,740
Net Cashflow4194,047334-1,439-2,715

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 down at 11.3% in FY21 as against 10.5% in FY20.
  • Net profit margins grew from 4.3% in FY20 to 7.3% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.2 in FY20.

Here's the ratio/financial analysis of WELSPUN CORP for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)8.97.33.410.511.3
Net Profit Margin (%)1.63.20.64.37.3
Debt to Equity Ratio (x)0.50.40.40.20.1

Read: Latest Annual Report Analysis of WELSPUN CORP

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