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WATERBASE 2021-22 Annual Report Analysis
Fri, 29 Jul

WATERBASE 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.

WATERBASE Income Statement Analysis

  • Operating income during the year rose 41.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 95.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.2% in FY22 as against 6.7% in FY21.
  • Depreciation charges increased by 16.1% and finance costs decreased by 43.4% YoY, respectively.
  • Other income grew by 228.8% YoY.
  • Net profit for the year declined by 98.7% YoY.
  • Net profit margins during the year declined from 2.8% in FY21 to 0.0% in FY22.

WATERBASE Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 2,115 2,987 41.2%
Other income Rs m 27 90 228.8%
Total Revenues Rs m 2,142 3,077 43.6%
Gross profit Rs m 141 7 -95.3%
Depreciation Rs m 73 85 16.1%
Interest Rs m 15 8 -43.4%
Profit before tax Rs m 81 3 -95.8%
Tax Rs m 22 3 -87.9%
Profit after tax Rs m 59 1 -98.7%
Gross profit margin % 6.7 0.2
Effective tax rate % 26.8 77.8
Net profit margin % 2.8 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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WATERBASE Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 380 million as compared to Rs 499 million in FY21, thereby witnessing an decrease of -23.8%.
  • Current assets fell 12% and stood at Rs 1 billion, while fixed assets rose 4% and stood at Rs 1 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a fall of 5%.

WATERBASE Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 1,900 1,860 -2.1
 
Current Liabilities Rs m 499 380 -23.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 3,098 2,943 -5.0
 
Current assets Rs m 1,696 1,487 -12.3
Fixed Assets Rs m 1,403 1,457 3.9
Total Assets Rs m 3,098 2,943 -5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



WATERBASE Cash Flow Statement Analysis

  • WATERBASE's cash flow from operating activities (CFO) during FY22 stood at Rs 23 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs 276 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -53 million, an improvement of 47% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 246 million from the Rs -111 million net cash flows seen during FY21.

WATERBASE 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 519 23 -95.5%
Cash Flow from Investing Activities Rs m -529 276 -
Cash Flow from Financing Activities Rs m -101 -53 -
Net Cash Flow Rs m -111 246 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for WATERBASE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 1.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 81.5, stands at -48.7 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 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 55.1 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 51.1 72.1
TTM Earnings per share Rs 1.4 0.0
Diluted earnings per share Rs 1.4 0.0
Price to Cash Flow x 31.5 55.1
TTM P/E ratio x 70.3 -48.7
Price / Book Value ratio x 2.5 2.5
Market Cap Rs m 4,800 4,708
Dividends per share (Unadj.) Rs 1.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for WATERBASE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.9x during FY22, from 3.4x 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 deteriorated and stood at 1.4x during FY22, from 6.5x 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 declined and down at 0.0% during FY22, from 3.1% 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 declined and down at 0.6% during FY22, from 5.0% 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 declined and down at 0.3% during FY22, from 2.4% 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 3.4 3.9
Debtors’ Days Days 821 475
Interest coverage x 6.5 1.4
Debt to equity ratio x 0.0 0.0
Return on assets % 2.4 0.3
Return on equity % 3.1 0.0
Return on capital employed % 5.0 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

WATERBASE Share Price Performance

Over the last one year, WATERBASE share price has moved down from Rs 124.3 to Rs 81.5, registering a loss of Rs 42.8 or around 34.4%.

Overall, the S&P BSE SENSEX is up 9.1% over the year.

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

Annual Report FAQs

What is the current share price of WATERBASE?

WATERBASE currently trades at Rs 74.2 per share. You can check out the latest share price performance of WATERBASE here...

What was the revenue of WATERBASE in FY22? How does it compare to earlier years?

The revenues of WATERBASE stood at Rs 3,077 m in FY22, which was up 43.6% compared to Rs 2,142 m reported in FY21.

WATERBASE's revenue has fallen from Rs 3,443 m in FY18 to Rs 3,077 m in FY22.

Over the past 5 years, the revenue of WATERBASE has grown at a CAGR of -2.8%.

What was the net profit of WATERBASE in FY22? How does it compare to earlier years?

The net profit of WATERBASE stood at Rs 1 m in FY22, which was down -98.7% compared to Rs 59 m reported in FY21.

This compares to a net profit of Rs 185 m in FY20 and a net profit of Rs 308 m in FY19.

Over the past 5 years, WATERBASE net profit has grown at a CAGR of -77.6%.

What does the cash flow statement of WATERBASE 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 WATERBASE reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 23 m as compared to Rs 519 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs 276 m as compared to Rs -529 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -53 m as compared to Rs -101 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations54619843851923
From Investments-55-82-37-529276
From Financial Activity-94-132-198-101-53
Net Cashflow397-16203-111246

What does the Key Ratio analysis of WATERBASE 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 WATERBASE reveals:

  • Operating profit margins witnessed a fall and stood at 0.2% in FY22 as against 6.7% in FY21.
  • Net profit margins declined from 2.8% in FY21 to 0.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)16.814.110.06.70.2
Net Profit Margin (%)8.78.45.72.80.0
Debt to Equity Ratio (x)0.10.00.00.00.0

Read: Latest Annual Report Analysis of WATERBASE

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