WARDWIZARD INNOVATIONS 2023-24 Annual Report Analysis

Tue, 29 Oct

WARDWIZARD INNOVATIONS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

WARDWIZARD INNOVATIONS Income Statement Analysis

• Operating income during the year rose 34.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.8% in FY24 as against 7.8% in FY23.
• Depreciation charges increased by 34.8% and finance costs increased by 548.3% YoY, respectively.
• Other income declined by 41.9% YoY.
• Net profit for the year grew by 51.8% YoY.
• Net profit margins during the year grew from 3.7% in FY23 to 4.2% in FY24.

WARDWIZARD INNOVATIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,389	3,214	34.5%
Other income	Rs m	4	2	-41.9%
Total Revenues	Rs m	2,393	3,216	34.4%
Gross profit	Rs m	187	316	69.5%
Depreciation	Rs m	49	67	34.8%
Interest	Rs m	8	53	548.3%
Profit before tax	Rs m	133	199	50.2%
Tax	Rs m	44	65	47.0%
Profit after tax	Rs m	89	134	51.8%
Gross profit margin	%	7.8	9.8
Effective tax rate	%	33.2	32.5
Net profit margin	%	3.7	4.2

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

WARDWIZARD INNOVATIONS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 35.3%.
• Long-term debt down at Rs 104 million as compared to Rs 120 million during FY23, a fall of 13.5%.
• Current assets rose 44% and stood at Rs 2 billion, while fixed assets fell 11% and stood at Rs 736 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 24%.

WARDWIZARD INNOVATIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	882	1,013	14.8
Current Liabilities	Rs m	1,289	1,744	35.3
Long-term Debt	Rs m	120	104	-13.5
Total Liabilities	Rs m	2,308	2,872	24.5
Current assets	Rs m	1,483	2,136	44.1
Fixed Assets	Rs m	825	736	-10.8
Total Assets	Rs m	2,308	2,872	24.5

WARDWIZARD INNOVATIONS Cash Flow Statement Analysis

• WARDWIZARD INNOVATIONS's cash flow from operating activities (CFO) during FY24 stood at Rs -628 million, an improvement of 242.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -75 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 642 million, an improvement of 89% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -61 million from the Rs -58 million net cash flows seen during FY23.

WARDWIZARD INNOVATIONS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-183	-628	-
Cash Flow from Investing Activities	Rs m	-214	-75	-
Cash Flow from Financing Activities	Rs m	339	642	89.4%
Net Cash Flow	Rs m	-58	-61	-

Current Valuations for WARDWIZARD INNOVATIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an improvement from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 43.3, stands at 79.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 77.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	9.2	12.3
TTM Earnings per share	Rs	0.3	0.5
Diluted earnings per share	Rs	0.3	0.5
Price to Cash Flow	x	97.8	77.6
TTM P/E ratio	x	152.6	79.5
Price / Book Value ratio	x	19.0	15.4
Market Cap	Rs m	16,789	15,604
Dividends per share (Unadj.)	Rs	0.1	0.2

Ratio Analysis for WARDWIZARD INNOVATIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.1x during FY23. 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 4.8x during FY24, from 17.4x during FY23. 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 13.3% during FY24, from 10.0% during FY24. 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 22.5% during FY24, from 14.0% during FY23. 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 6.5% during FY24, from 4.2% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	247	755
Interest coverage	x	17.4	4.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.2	6.5
Return on equity	%	10.0	13.3
Return on capital employed	%	14.0	22.5

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

WARDWIZARD INNOVATIONS Share Price Performance

Over the last one year, WARDWIZARD INNOVATIONS share price has moved up from Rs 43.0 to Rs 43.3, registering a gain of Rs 0.3 or around 0.7%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 54,564.7 (up 0.0%). Over the last one year it has moved up from 36,718.0 to 54,564.7, a gain of 17,847 points (up 48.6%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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