WHEELS INDIA 2023-24 Annual Report Analysis

Thu, 27 Jun

WHEELS INDIA 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.

WHEELS INDIA Income Statement Analysis

• Operating income during the year rose 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.5% in FY24 as against 4.9% in FY23.
• Depreciation charges increased by 14.2% and finance costs increased by 15.1% YoY, respectively.
• Other income declined by 61.1% YoY.
• Net profit for the year grew by 14.5% YoY.
• Net profit margins during the year grew from 1.1% in FY23 to 1.2% in FY24.

WHEELS INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	46,403	49,773	7.3%
Other income	Rs m	211	82	-61.1%
Total Revenues	Rs m	46,613	49,855	7.0%
Gross profit	Rs m	2,256	2,741	21.5%
Depreciation	Rs m	744	849	14.2%
Interest	Rs m	1,064	1,225	15.1%
Profit before tax	Rs m	659	749	13.7%
Tax	Rs m	144	160	10.5%
Profit after tax	Rs m	514	589	14.5%
Gross profit margin	%	4.9	5.5
Effective tax rate	%	21.9	21.3
Net profit margin	%	1.1	1.2

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WHEELS INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 19 billion as compared to Rs 20 billion in FY23, thereby witnessing an decrease of -4.0%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY23, a growth of 39.3%.
• Current assets fell 2% and stood at Rs 18 billion, while fixed assets rose 7% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 31 billion as against Rs 30 billion during FY23, thereby witnessing a growth of 2%.

WHEELS INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,550	8,398	11.2
Current Liabilities	Rs m	19,782	18,982	-4.0
Long-term Debt	Rs m	2,064	2,876	39.3
Total Liabilities	Rs m	30,476	31,041	1.9
Current assets	Rs m	18,179	17,877	-1.7
Fixed Assets	Rs m	12,297	13,164	7.1
Total Assets	Rs m	30,476	31,041	1.9

WHEELS INDIA Cash Flow Statement Analysis

• WHEELS INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 336 million from the Rs 30 million net cash flows seen during FY23.

WHEELS INDIA 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	3,702	3,294	-11.0%
Cash Flow from Investing Activities	Rs m	-1,515	-1,497	-
Cash Flow from Financing Activities	Rs m	-2,157	-1,460	-
Net Cash Flow	Rs m	30	336	1,038.6%

Current Valuations for WHEELS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.1, an improvement from the EPS of Rs 21.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 817.3, stands at 39.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 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	1,928.6	2,037.4
TTM Earnings per share	Rs	21.4	24.1
Diluted earnings per share	Rs	21.0	24.1
Price to Cash Flow	x	8.8	11.1
TTM P/E ratio	x	23.5	39.3
Price / Book Value ratio	x	1.9	1.9
Market Cap	Rs m	14,341	15,998
Dividends per share (Unadj.)	Rs	7.0	7.4

Ratio Analysis for WHEELS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY24, from 0.9x 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 1.6x during FY24, from 1.6x 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 7.0% during FY24, from 6.8% 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 declined and down at 17.5% during FY24, from 17.9% 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 5.8% during FY24, from 5.2% 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	0.9	0.9
Debtors’ Days	Days	6	5
Interest coverage	x	1.6	1.6
Debt to equity ratio	x	0.3	0.3
Return on assets	%	5.2	5.8
Return on equity	%	6.8	7.0
Return on capital employed	%	17.9	17.5

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

WHEELS INDIA Share Price Performance

Over the last one year, WHEELS INDIA share price has moved down from Rs 751.4 to Rs 0.0, registering a loss of Rs 751.4 or around 100.0%.

Overall, the NIFTY 50 is down 0.0% over the year.

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