Consolidated net sales of Wendt India for the quarter ended Mar 2023 has increased 23% to Rs 58.93 crore. Operating profit margin has jumped from 23.9% to 28.7%, leading to 48% rise in operating profit to Rs 16.92 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 29.57% to 28.28%. Purchase of finished goods cost fell from 6.29% to 6.13%. Employee cost decreased from 16.84% to 14.81%. Other expenses fell from 24.09% to 22.46%. Other income rose 84.04% to Rs 1.73 crore. PBIDT rose 51.13% to Rs 18.65 crore. Provision for interest remained nil. PBDT rose 51.13% to Rs 18.65 crore. Provision for depreciation rose 5.83% to Rs 2.18 crore. Profit before tax grew 60.21% to Rs 16.47 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 3.68 crore, compared to Rs 2.81 crore. Effective tax rate was 22.34% compared to 27.33%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 71.22% to Rs 12.79 crore.
Sales of Super Abrasives segment has gone up 45.64% to Rs 38.10 crore (accounting for 66.67% of total sales). Sales of Machines Accessories and components segment has gone down 14.73% to Rs 9.67 crore (accounting for 16.92% of total sales). Sales of Others segment fell 13.03% to Rs 2.87 crore (accounting for 5.02% of total sales). Sales of Precision Products segment has gone up 0.15% to Rs 6.51 crore (accounting for 11.39% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 58.01% to Rs 14.90 crore. PBIT of Super Abrasives segment rose 200.47% to Rs 12.86 crore (accounting for 86.31% of total PBIT). PBIT of Machines Accessories and components segment fell 61.02% to Rs 1.15 crore (accounting for 7.72% of total PBIT). PBIT of Others segment fell 57.50% to Rs 0.17 crore (accounting for 1.14% of total PBIT). PBIT of Precision Products segment fell 60.00% to Rs 0.72 crore (accounting for 4.83% of total PBIT).
PBIT margin of Super Abrasives segment rose from 16.36% to 33.75%. PBIT margin of Machines Accessories and components segment fell from 26.01% to 11.89%. PBIT margin of Others segment fell from 12.12% to 5.92%. PBIT margin of Precision Products segment fell from 27.69% to 11.06%. Overall PBIT margin rose from 19.94% to 26.07%.
Full year results analysis.
Net sales (including other operating income) of Wendt India has increased 17.58% to Rs 210.24 crore. Operating profit margin has jumped from 23.30% to 26.71%, leading to 34.77% rise in operating profit to Rs 56.16 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 25.87% to 25.79%. Purchase of finished goods cost fell from 9.79% to 7.97%. Employee cost decreased from 18.39% to 17.05%. Other expenses fell from 22.89% to 22.42%. Other income rose 28.94% to Rs 4.99 crore. PBIDT rose 34.28% to Rs 61.15 crore. PBDT rose 34.29% to Rs 61.13 crore. Provision for depreciation fell 5.81% to Rs 8.11 crore. Profit before tax grew 43.65% to Rs 53.02 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 12.93 crore, compared to Rs 9.84 crore. Effective tax rate was 24.39% compared to 26.66%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 48.10% to Rs 40.09 crore.
Sales of Super Abrasives segment has gone up 20.84% to Rs 135.99 crore (accounting for 65.36% of total sales). Sales of Machines Accessories and components segment has gone up 13.12% to Rs 27.76 crore (accounting for 13.34% of total sales). Sales of Others segment fell 8.19% to Rs 15.69 crore (accounting for 7.54% of total sales). Sales of Precision Products segment has gone up 24.10% to Rs 28.63 crore (accounting for 13.76% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 45.33% to Rs 48.67 crore. PBIT of Super Abrasives segment rose 72.60% to Rs 35.28 crore (accounting for 72.49% of total PBIT). PBIT of Machines Accessories and components segment fell 2.71% to Rs 4.31 crore (accounting for 8.86% of total PBIT). PBIT of Others segment fell 29.81% to Rs 2.19 crore (accounting for 4.50% of total PBIT). PBIT of Precision Products segment rose 25.27% to Rs 6.89 crore (accounting for 14.16% of total PBIT).
PBIT margin of Super Abrasives segment rose from 18.16% to 25.94%. PBIT margin of Machines Accessories and components segment fell from 18.05% to 15.53%. PBIT margin of Others segment fell from 18.26% to 13.96%. PBIT margin of Precision Products segment rose from 23.84% to 24.07%. Overall PBIT margin rose from 18.90% to 23.39%.
Other developments
Board of Directors have recommended final dividend of
Rs. 50 /- per share (500 % on face value of equity shares of Rs 10/- each) out of the current
year’s profits. The payment of dividend is subject to the approval of shareholders in ensuing
Annual General Meeting of the company to be held on 21st July’2023. With the Company
having declared an interim dividend of Rs. 30 /- per share (300 % on face value of equity
shares of Rs 10/- each) at its Board Meeting held on 18th January’2023, the total dividend for
the year ended March 31, 2023 is Rs 80 /- per share ( 800 % of the face value of equity shares
of Rs 10/- each).
Equity capital stood at Rs 2.00 crore as of 31 March 2023 to Rs 2.00 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 75.00% as of 31 March 2023 ,compared to 75.00% as of 31 March 2022 .
Loan funds remained nil. Inventories rose to Rs 34.15 crore as of 31 March 2023 from Rs 28.19 crore as of 31 March 2022. Sundry debtors were higher at Rs 40.30 crore as of 31 March 2023 compared to Rs 34.37 crore as of 31 March 2022. Cash and bank balance declined from Rs 13.67 crore as of 31 March 2022 to Rs 13.41 crore as of 31 March 2023. Investments rose to Rs 70.96 crore as of 31 March 2023 from Rs 64.48 crore as of 31 March 2022 . Fixed assets increased to Rs 57.95 crore as of 31 March 2023 from Rs 54.59 crore as of 31 March 2022. Intangible assets stood at Rs 0.10 crore.
Cash flow from operating activities decreased to Rs 33.00 crore for year ended March 2023 from Rs 36.86 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 9.86 crore, compared to Rs 4.90 crore during the year ended March 2022.