WELSPUN SPECIALTY 2023-24 Annual Report Analysis

Mon, 7 Oct

WELSPUN SPECIALTY 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.

WELSPUN SPECIALTY Income Statement Analysis

• Operating income during the year rose 66.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 233.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.0% in FY24 as against 4.0% in FY23.
• Depreciation charges increased by 3.8% and finance costs increased by 9.7% YoY, respectively.
• Other income grew by 45.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 3.3% in FY23 to 9.0% in FY24.

WELSPUN SPECIALTY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,178	6,967	66.7%
Other income	Rs m	148	215	45.7%
Total Revenues	Rs m	4,326	7,182	66.0%
Gross profit	Rs m	167	558	233.9%
Depreciation	Rs m	149	155	3.8%
Interest	Rs m	303	333	9.7%
Profit before tax	Rs m	-137	286	NA
Tax	Rs m	0	-339	0.0
Profit after tax	Rs m	-137	625	NA
Gross profit margin	%	4.0	8.0
Effective tax rate	%	0.0	-118.4
Net profit margin	%	-3.3	9.0

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WELSPUN SPECIALTY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 60.0%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 44.0%.
• Current assets rose 30% and stood at Rs 3 billion, while fixed assets fell 2% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 16%.

WELSPUN SPECIALTY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	294	931	216.9
Current Liabilities	Rs m	2,274	3,637	60.0
Long-term Debt	Rs m	2,186	1,223	-44.0
Total Liabilities	Rs m	4,768	5,533	16.1
Current assets	Rs m	2,666	3,468	30.1
Fixed Assets	Rs m	2,102	2,065	-1.7
Total Assets	Rs m	4,768	5,533	16.1

WELSPUN SPECIALTY Cash Flow Statement Analysis

• WELSPUN SPECIALTY's cash flow from operating activities (CFO) during FY24 stood at Rs 75 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -124 million, an improvement of 146.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 47 million, an improvement of 109% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 million from the Rs -47 million net cash flows seen during FY23.

WELSPUN SPECIALTY 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	501	75	-85.1%
Cash Flow from Investing Activities	Rs m	-50	-124	-
Cash Flow from Financing Activities	Rs m	-498	47	-
Net Cash Flow	Rs m	-47	-3	-

Current Valuations for WELSPUN SPECIALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, 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 48.6, stands at 48.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 27.7 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 21.5 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	7.9	13.1
TTM Earnings per share	Rs	-0.3	1.2
Diluted earnings per share	Rs	-0.3	1.2
Price to Cash Flow	x	813.3	21.5
TTM P/E ratio	x	-69.3	48.4
Price / Book Value ratio	x	30.7	18.0
Market Cap	Rs m	9,006	16,738
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WELSPUN SPECIALTY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.2x 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 improved and stood at 1.9x during FY24, from 0.5x 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 67.1% during FY24, from -46.8% 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 28.7% during FY24, from 6.7% 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 17.3% during FY24, from 3.5% 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	1.2	1.0
Debtors’ Days	Days	361	254
Interest coverage	x	0.5	1.9
Debt to equity ratio	x	7.4	1.3
Return on assets	%	3.5	17.3
Return on equity	%	-46.8	67.1
Return on capital employed	%	6.7	28.7

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

WELSPUN SPECIALTY Share Price Performance

Over the last one year, WELSPUN SPECIALTY share price has moved up from Rs 37.0 to Rs 48.6, registering a gain of Rs 11.6 or around 31.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,365.9 (down 2.7%). Over the last one year it has moved up from 22,654.8 to 33,365.9, a gain of 10,711 points (up 47.3%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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