VELJAN DENISON 2023-24 Annual Report Analysis

Thu, 21 Nov

VELJAN DENISON 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.

VELJAN DENISON Income Statement Analysis

• Operating income during the year rose 14.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.2% in FY24 as against 21.3% in FY23.
• Depreciation charges increased by 3.7% and finance costs increased by 31.1% YoY, respectively.
• Other income grew by 36.6% YoY.
• Net profit for the year grew by 37.8% YoY.
• Net profit margins during the year grew from 13.3% in FY23 to 16.0% in FY24.

VELJAN DENISON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,206	1,377	14.2%
Other income	Rs m	21	28	36.6%
Total Revenues	Rs m	1,226	1,405	14.6%
Gross profit	Rs m	257	334	29.8%
Depreciation	Rs m	54	56	3.7%
Interest	Rs m	8	10	31.1%
Profit before tax	Rs m	216	296	36.9%
Tax	Rs m	56	75	34.4%
Profit after tax	Rs m	160	221	37.8%
Gross profit margin	%	21.3	24.2
Effective tax rate	%	25.8	25.4
Net profit margin	%	13.3	16.0

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VELJAN DENISON Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 290 million as compared to Rs 351 million in FY23, thereby witnessing an decrease of -17.4%.
• Current assets rose 5% and stood at Rs 1 billion, while fixed assets rose 8% and stood at Rs 931 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 6%.

VELJAN DENISON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,852	2,049	10.6
Current Liabilities	Rs m	351	290	-17.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,249	2,389	6.2
Current assets	Rs m	1,386	1,458	5.2
Fixed Assets	Rs m	863	931	7.8
Total Assets	Rs m	2,249	2,389	6.2

VELJAN DENISON Cash Flow Statement Analysis

• VELJAN DENISON's cash flow from operating activities (CFO) during FY24 stood at Rs 153 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -75 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -81 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 million from the Rs 22 million net cash flows seen during FY23.

VELJAN DENISON 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	188	153	-18.4%
Cash Flow from Investing Activities	Rs m	-169	-75	-
Cash Flow from Financing Activities	Rs m	4	-81	-
Net Cash Flow	Rs m	22	-3	-

Current Valuations for VELJAN DENISON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 98.1, an improvement from the EPS of Rs 71.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,474.0, stands at 29.5 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 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.0 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	535.9	612.0
TTM Earnings per share	Rs	71.2	98.1
Diluted earnings per share	Rs	35.6	49.1
Price to Cash Flow	x	12.9	11.0
TTM P/E ratio	x	17.6	29.5
Price / Book Value ratio	x	1.4	1.5
Market Cap	Rs m	2,655	3,038
Dividends per share (Unadj.)	Rs	13.0	17.0

Ratio Analysis for VELJAN DENISON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.0x during FY24, from 3.9x 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 29.8x during FY24, from 28.6x 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 10.8% during FY24, from 8.7% 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 14.9% during FY24, from 12.1% 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 9.7% during FY24, from 7.5% 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	3.9	5.0
Debtors’ Days	Days	935	817
Interest coverage	x	28.6	29.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.5	9.7
Return on equity	%	8.7	10.8
Return on capital employed	%	12.1	14.9

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

VELJAN DENISON Share Price Performance

Over the last one year, VELJAN DENISON share price has moved up from Rs 912.2 to Rs 1,474.0, registering a gain of Rs 561.9 or around 61.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 65,996.6 (down 0.5%). Over the last one year it has moved up from 48,608.7 to 65,996.6, a gain of 17,388 points (up 35.8%).

Overall, the S&P BSE SENSEX is up 17.5% over the year.

(To know more, check out historical annual results for VELJAN DENISON and quarterly results for VELJAN DENISON)