WELSPUN CORP 2023-24 Annual Report Analysis

Wed, 11 Sep

WELSPUN CORP 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 CORP Income Statement Analysis

• Operating income during the year rose 77.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 247.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY24 as against 5.4% in FY23.
• Depreciation charges increased by 14.8% and finance costs increased by 25.2% YoY, respectively.
• Other income declined by 30.2% YoY.
• Net profit for the year grew by 470.4% YoY.
• Net profit margins during the year grew from 2.0% in FY23 to 6.6% in FY24.

WELSPUN CORP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	97,581	173,396	77.7%
Other income	Rs m	3,571	2,492	-30.2%
Total Revenues	Rs m	101,152	175,888	73.9%
Gross profit	Rs m	5,227	18,165	247.5%
Depreciation	Rs m	3,030	3,479	14.8%
Interest	Rs m	2,432	3,044	25.2%
Profit before tax	Rs m	3,336	14,135	323.7%
Tax	Rs m	1,345	2,775	106.4%
Profit after tax	Rs m	1,992	11,360	470.4%
Gross profit margin	%	5.4	10.5
Effective tax rate	%	40.3	19.6
Net profit margin	%	2.0	6.6

Don't Miss: Key Information for Long-term Investors

WELSPUN CORP Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 42 billion as compared to Rs 83 billion in FY23, thereby witnessing an decrease of -49.7%.
• Long-term debt down at Rs 16 billion as compared to Rs 19 billion during FY23, a fall of 15.8%.
• Current assets fell 36% and stood at Rs 63 billion, while fixed assets rose 2% and stood at Rs 57 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 120 billion as against Rs 154 billion during FY23, thereby witnessing a fall of 22%.

WELSPUN CORP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	47,189	55,960	18.6
Current Liabilities	Rs m	82,847	41,665	-49.7
Long-term Debt	Rs m	19,262	16,224	-15.8
Total Liabilities	Rs m	153,931	120,031	-22.0
Current assets	Rs m	97,682	62,756	-35.8
Fixed Assets	Rs m	56,233	57,268	1.8
Total Assets	Rs m	153,931	120,031	-22.0

WELSPUN CORP Cash Flow Statement Analysis

• WELSPUN CORP's cash flow from operating activities (CFO) during FY24 stood at Rs 13 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -19 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs 4 billion net cash flows seen during FY23.

WELSPUN CORP 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	-1,851	13,060	-
Cash Flow from Investing Activities	Rs m	-4,167	3,674	-
Cash Flow from Financing Activities	Rs m	9,088	-18,768	-
Net Cash Flow	Rs m	3,761	-1,976	-

Current Valuations for WELSPUN CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.4, an improvement from the EPS of Rs 7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 684.0, stands at 19.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	373.1	662.7
TTM Earnings per share	Rs	7.6	43.4
Diluted earnings per share	Rs	7.6	43.3
Price to Cash Flow	x	10.5	7.3
TTM P/E ratio	x	42.5	19.9
Price / Book Value ratio	x	1.3	1.9
Market Cap	Rs m	59,936	107,748
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for WELSPUN CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 5.6x during FY24, from 2.4x 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 improved and stood at 20.3% during FY24, from 4.2% 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 23.8% during FY24, from 8.7% 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 12.0% during FY24, from 2.9% 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	1.5
Debtors’ Days	Days	4	4
Interest coverage	x	2.4	5.6
Debt to equity ratio	x	0.4	0.3
Return on assets	%	2.9	12.0
Return on equity	%	4.2	20.3
Return on capital employed	%	8.7	23.8

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

WELSPUN CORP Share Price Performance

Over the last one year, WELSPUN CORP share price has moved up from Rs 387.6 to Rs 684.0, registering a gain of Rs 296.4 or around 76.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,499.2 (down 0.1%). Over the last one year it has moved up from 47,746.4 to 71,499.2, a gain of 23,753 points (up 49.7%).

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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