WPIL. 2023-24 Annual Report Analysis

Mon, 22 Jul

WPIL. 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.

WPIL. Income Statement Analysis

• Operating income during the year rose 3.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.2% in FY24 as against 16.4% in FY23.
• Depreciation charges increased by 8.1% and finance costs increased by 29.9% YoY, respectively.
• Other income declined by 7.1% YoY.
• Net profit for the year grew by 8.5% YoY.
• Net profit margins during the year grew from 11.1% in FY23 to 11.6% in FY24.

WPIL. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,055	16,644	3.7%
Other income	Rs m	306	284	-7.1%
Total Revenues	Rs m	16,360	16,928	3.5%
Gross profit	Rs m	2,635	3,034	15.1%
Depreciation	Rs m	279	301	8.1%
Interest	Rs m	237	308	29.9%
Profit before tax	Rs m	2,425	2,708	11.7%
Tax	Rs m	646	778	20.5%
Profit after tax	Rs m	1,779	1,930	8.5%
Gross profit margin	%	16.4	18.2
Effective tax rate	%	26.6	28.7
Net profit margin	%	11.1	11.6

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WPIL. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 10 billion as compared to Rs 11 billion in FY23, thereby witnessing an decrease of -11.7%.
• Long-term debt down at Rs 265 million as compared to Rs 911 million during FY23, a fall of 70.8%.
• Current assets rose 21% and stood at Rs 19 billion, while fixed assets rose 16% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 26 billion as against Rs 22 billion during FY23, thereby witnessing a growth of 19%.

WPIL. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,098	12,459	53.8
Current Liabilities	Rs m	11,435	10,102	-11.7
Long-term Debt	Rs m	911	265	-70.8
Total Liabilities	Rs m	22,018	26,280	19.4
Current assets	Rs m	15,940	19,256	20.8
Fixed Assets	Rs m	6,078	7,023	15.6
Total Assets	Rs m	22,018	26,280	19.4

WPIL. Cash Flow Statement Analysis

• WPIL.'s cash flow from operating activities (CFO) during FY24 stood at Rs -895 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -882 million, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs -242 million net cash flows seen during FY23.

WPIL. 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	1,872	-895	-
Cash Flow from Investing Activities	Rs m	-946	5,288	-
Cash Flow from Financing Activities	Rs m	-1,020	-882	-
Net Cash Flow	Rs m	-242	3,389	-

Current Valuations for WPIL.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 197.6, an improvement from the EPS of Rs 182.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 454.0, stands at 22.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 1.5 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	1,643.3	1,703.6
TTM Earnings per share	Rs	182.1	197.6
Diluted earnings per share	Rs	18.2	19.8
Price to Cash Flow	x	11.4	1.5
TTM P/E ratio	x	10.8	22.9
Price / Book Value ratio	x	2.0	0.3
Market Cap	Rs m	16,580	3,434
Dividends per share (Unadj.)	Rs	20.0	40.0

Ratio Analysis for WPIL.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.4x 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 9.8x during FY24, from 11.2x 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 15.5% during FY24, from 22.0% 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 declined and down at 23.7% during FY24, from 29.6% 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 8.5% during FY24, from 9.2% 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	1.4	1.9
Debtors’ Days	Days	1,244	1,604
Interest coverage	x	11.2	9.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.2	8.5
Return on equity	%	22.0	15.5
Return on capital employed	%	29.6	23.7

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

WPIL. Share Price Performance

Over the last one year, WPIL. share price has moved up from Rs 285.2 to Rs 454.0, registering a gain of Rs 168.8 or around 59.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,381.0 (up 1.1%). Over the last one year it has moved up from 42,401.9 to 72,381.0, a gain of 29,979 points (up 70.7%).

Overall, the S&P BSE SENSEX is up 20.5% over the year.

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