Capitaline

Results 24-Jul-21

Analysis

Wendt India

Strong operating show

Consolidated net sales (including other operating income) of Wendt India for the quarter ended Jun 2021 has increased 89% to Rs 42.37 crore. Operating profit margin has jumped from 5.5% to 22.3%, leading to 667% rise in operating profit to Rs 9.43 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 18.78% to 24.62%. Purchase of finished goods cost rose from 13.22% to 13.91%. Employee cost decreased from 37.36% to 18.09%. Other expenses fell from 24.49% to 21.60%. Other income fell 37% to Rs 1.01 crore. Provision for interest remained nil. Provision for depreciation rose 2% to Rs 2.3 crore. Profit before tax grew 1303% to Rs 8.14 crore. Provision for tax was expense of Rs 2.14 crore, compared to Rs 0.17 crore. Effective tax rate was 26.29% compared to 29.31%. PAT was up 1363% to Rs 6 crore. Share of profit/loss were nil in both the periods. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 1363% to Rs 6.00 crore.

Sales of Super Abrasives segment has gone up 106.02% to Rs 28.06 crore (accounting for 66.62% of total sales). Sales of Machines Accessories and components segment has gone up 59.72% to Rs 9.28 crore (accounting for 22.03% of total sales). Sales of Others segment rose 73.82% to Rs 4.78 crore (accounting for 11.35% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 796.26% to Rs 9.59 crore. PBIT of Super Abrasives segment rose 6,460.00% to Rs 6.56 crore (accounting for 68.40% of total PBIT). PBIT of Machines Accessories and components segment rose 275.00% to Rs 1.95 crore (accounting for 20.33% of total PBIT). PBIT of Others segment rose 140.00% to Rs 1.08 crore (accounting for 11.26% of total PBIT).

PBIT margin of Super Abrasives segment rose from 0.73% to 23.38%. PBIT margin of Machines Accessories and components segment rose from 8.95% to 21.01%. PBIT margin of Others segment rose from 16.36% to 22.59%. Overall PBIT margin rose from 4.82% to 22.77%.

Yearly performance

For the fiscal ended March 2021, the consolidated sales was down 5% to Rs 136.62 crore. The fall is largely due to weak exports and lower revenue from subsidiaries as the domestic sales of standalone entity was up by 7% to Rs 86.22 crore. However the exports was down by 18% to Rs 32.78 crore mainly on account of lower demand due to continued slow down and lockdowns imposed in view of the second wave of COVID reported in UK, US and other European countries. As OPM expand by 330 bps to 16.1%, the operating profit margin jumped up by 20% to Rs 22 crore. The PBT was up by 25% to Rs 17 crore gained largely by lower depreciation. With taxation stand higher by 18% to Rs 4.23 crore, the PAT was eventually RS 12.77 crore, a growth of 27%.

Other developments

Promoters' stake was 75.00% as of 30 June 2021, compared to 79.74% as of 30 June 2020.

Wendt (India): Consolidated Results
	2106 (3)	2006 (3)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	42.37	22.46	89	136.62	143.23	-5
OPM (%)	22.3	5.5		16.1	12.8
OP	9.43	1.23	667	22.00	18.28	20
Other inc.	1.01	1.61	-37	3.96	4.85	-18
PBIDT	10.44	2.84	268	25.96	23.13	12
Interest	0.00	0.00		0.03	0.03	0
PBDT	10.44	2.84	268	25.93	23.10	12
Dep.	2.30	2.26	2	8.93	9.49	-6
PBT before EO	8.14	0.58	1303	17.00	13.61	25
EO Income	0.00	0.00		0.00	0.00
PBT	8.14	0.58	1303	17.00	13.61	25
Taxation	2.14	0.17	1159	4.23	3.58	18
PAT	6.00	0.41	1363	12.77	10.03	27
EPS (Rs)*	#	#		63.9	50.1
* Annualised on current equity of Rs 2.0 crore. Face Value: Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

Wendt India : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202106	202006	Var.(%)	% of (Total)	202103	202003	Var.(%)
Sales
Super Abrasives	66.62	28.06	13.62	106.02	61.95	83.67	88.10	-5.03
Machines Accessories and components	22.03	9.28	5.81	59.72	28.46	38.44	36.06	6.60
Others	11.35	4.78	2.75	73.82	9.59	12.95	16.47	-21.37
Total Reported Sales	100.00	42.12	22.18	89.90	100.00	135.06	140.63	-3.96
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00	-
Net Sales	100.00	42.12	22.18	89.90	100.00	135.06	140.63	-3.96
PBIT
Super Abrasives	68.40	6.56	0.10	6,460.00	62.94	13.62	10.22	33.27
Machines Accessories and components	20.33	1.95	0.52	275.00	25.92	5.61	4.26	31.69
Others	11.26	1.08	0.45	140.00	11.14	2.41	3.88	-37.89
Total PBIT	100.00	9.59	1.07	796.26	100.00	21.64	18.36	17.86
Less : Interest		0.00	0.00	-		0.03	0.03	0
Add: Other un-allcoable		-1.45	-0.49	195.92		-4.61	-4.72	-2.33
PBIT Margin(%)
Super Abrasives		23.38	0.73	2,264.43		16.28	11.60	467.78
Machines Accessories and components		21.01	8.95	1,206.28		14.59	11.81	278.05
Others		22.59	16.36	623.05		18.61	23.56	-494.79
PBT	100.00	8.14	0.58	1,303.45	100.00	17.00	13.61	24.91

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