WALCHAND PEOPLE 2022-23 Annual Report Analysis

Mon, 3 Jul

WALCHAND PEOPLE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

WALCHAND PEOPLE Income Statement Analysis

• Operating income during the year rose 13.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 49.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.7% in FY23 as against 8.2% in FY22.
• Depreciation charges increased by 100.6% and finance costs increased by 363.2% YoY, respectively.
• Other income grew by 151.4% YoY.
• Net profit for the year grew by 89.4% YoY.
• Net profit margins during the year grew from 10.4% in FY22 to 17.3% in FY23.

WALCHAND PEOPLE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	178	202	13.4%
Other income	Rs m	16	41	151.4%
Total Revenues	Rs m	194	243	24.9%
Gross profit	Rs m	15	7	-49.3%
Depreciation	Rs m	3	7	100.6%
Interest	Rs m	0	1	363.2%
Profit before tax	Rs m	27	40	48.8%
Tax	Rs m	9	5	-37.2%
Profit after tax	Rs m	18	35	89.4%
Gross profit margin	%	8.2	3.7
Effective tax rate	%	32.1	13.5
Net profit margin	%	10.4	17.3

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WALCHAND PEOPLE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 48 million as compared to Rs 38 million in FY22, thereby witnessing an increase of 27.5%.
• Long-term debt down at Rs 4 million as compared to Rs 5 million during FY22, a fall of 19.2%.
• Current assets rose 15% and stood at Rs 160 million, while fixed assets rose 7% and stood at Rs 125 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 285 million as against Rs 255 million during FY22, thereby witnessing a growth of 12%.

WALCHAND PEOPLE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	195	227	16.4
Current Liabilities	Rs m	38	48	27.5
Long-term Debt	Rs m	5	4	-19.2
Total Liabilities	Rs m	255	285	11.7
Current assets	Rs m	139	160	15.3
Fixed Assets	Rs m	116	125	7.4
Total Assets	Rs m	255	285	11.7

WALCHAND PEOPLE Cash Flow Statement Analysis

• WALCHAND PEOPLE 's cash flow from operating activities (CFO) during FY23 stood at Rs 3 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -5 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs 3 million net cash flows seen during FY22.

WALCHAND PEOPLE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	36	3	-90.4%
Cash Flow from Investing Activities	Rs m	-39	1	-
Cash Flow from Financing Activities	Rs m	6	-5	-
Net Cash Flow	Rs m	3	-1	-

Current Valuations for WALCHAND PEOPLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.1, an improvement from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 125.8, stands at 10.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	61.4	69.7
TTM Earnings per share	Rs	6.4	12.1
Diluted earnings per share	Rs	6.4	12.0
Price to Cash Flow	x	17.7	10.1
TTM P/E ratio	x	21.0	10.4
Price / Book Value ratio	x	1.8	1.9
Market Cap	Rs m	360	425
Dividends per share (Unadj.)	Rs	1.3	1.0

Ratio Analysis for WALCHAND PEOPLE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY23, from 3.7x during FY22. 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 46.9x during FY23, from 144.0x during FY22. 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 15.4% during FY23, from 9.5% during FY23. 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 17.9% during FY23, from 13.7% during FY22. 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 12.6% during FY23, from 7.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.7	3.3
Debtors’ Days	Days	503	693
Interest coverage	x	144.0	46.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.3	12.6
Return on equity	%	9.5	15.4
Return on capital employed	%	13.7	17.9

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

WALCHAND PEOPLE Share Price Performance

Over the last one year, WALCHAND PEOPLE share price has moved up from Rs 120.0 to Rs 125.8, registering a gain of Rs 5.9 or around 4.9%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

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