WALCHANDNAGAR 2023-24 Annual Report Analysis

Mon, 22 Jul

WALCHANDNAGAR 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.

WALCHANDNAGAR Income Statement Analysis

• Operating income during the year fell 6.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.1% in FY24 as against 22.1% in FY23.
• Depreciation charges decreased by 20.8% and finance costs decreased by 10.3% YoY, respectively.
• Other income grew by 16.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 6.1% in FY23 to 13.8% in FY24.

WALCHANDNAGAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,221	3,024	-6.1%
Other income	Rs m	223	260	16.7%
Total Revenues	Rs m	3,444	3,283	-4.7%
Gross profit	Rs m	713	-34	NA
Depreciation	Rs m	187	148	-20.8%
Interest	Rs m	553	496	-10.3%
Profit before tax	Rs m	196	-418	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	196	-418	NA
Gross profit margin	%	22.1	-1.1
Effective tax rate	%	0.0	0.0
Net profit margin	%	6.1	-13.8

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WALCHANDNAGAR Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -0.2%.
• Current assets rose 12% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 6%.

WALCHANDNAGAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,604	3,137	20.5
Current Liabilities	Rs m	4,375	4,368	-0.2
Long-term Debt	Rs m	499	0	-100.0
Total Liabilities	Rs m	8,281	8,755	5.7
Current assets	Rs m	4,890	5,479	12.1
Fixed Assets	Rs m	3,324	3,206	-3.6
Total Assets	Rs m	8,281	8,755	5.7

WALCHANDNAGAR Cash Flow Statement Analysis

• WALCHANDNAGAR's cash flow from operating activities (CFO) during FY24 stood at Rs 108 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 39 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 393 million, an improvement of 146% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 540 million from the Rs -12 million net cash flows seen during FY23.

WALCHANDNAGAR 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	761	108	-85.9%
Cash Flow from Investing Activities	Rs m	81	39	-51.4%
Cash Flow from Financing Activities	Rs m	-854	393	-
Net Cash Flow	Rs m	-12	540	-

Current Valuations for WALCHANDNAGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.5, an decline from the EPS of Rs 4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 331.7, stands at -44.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at -33.0 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	70.1	54.6
TTM Earnings per share	Rs	4.3	-7.5
Diluted earnings per share	Rs	3.5	-7.5
Price to Cash Flow	x	7.7	-33.0
TTM P/E ratio	x	15.0	-44.0
Price / Book Value ratio	x	1.1	2.8
Market Cap	Rs m	2,886	8,928
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WALCHANDNAGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 0.2x during FY24, from 1.4x 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 declined and down at -13.3% during FY24, from 7.5% 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 2.5% during FY24, from 24.1% 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 declined and down at 0.9% during FY24, from 9.0% 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	1.3
Debtors’ Days	Days	2,101	1,848
Interest coverage	x	1.4	0.2
Debt to equity ratio	x	0.2	0.0
Return on assets	%	9.0	0.9
Return on equity	%	7.5	-13.3
Return on capital employed	%	24.1	2.5

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

WALCHANDNAGAR Share Price Performance

Over the last one year, WALCHANDNAGAR share price has moved up from Rs 0.0 to Rs 331.7, registering a gain of Rs 331.7 or around 0.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,342.6 (up 1.0%). Over the last one year it has moved up from 42,401.9 to 72,342.6, a gain of 29,941 points (up 70.6%).

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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