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VODAFONE IDEA 2023-24 Annual Report Analysis

Wed, 7 Aug

VODAFONE IDEA 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.

VODAFONE IDEA Income Statement Analysis

• Operating income during the year rose 1.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.7% in FY24 as against 39.7% in FY23.
• Depreciation charges decreased by 1.8% and finance costs increased by 10.3% YoY, respectively.
• Other income declined by 45.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 69.5% in FY23 to 73.2% in FY24.

VODAFONE IDEA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	421,772	426,517	1.1%
Other income	Rs m	3,846	2,107	-45.2%
Total Revenues	Rs m	425,618	428,624	0.7%
Gross profit	Rs m	167,309	177,796	6.3%
Depreciation	Rs m	230,497	226,335	-1.8%
Interest	Rs m	233,634	257,666	10.3%
Profit before tax	Rs m	-292,976	-304,098	NA
Tax	Rs m	35	8,286	23,574.3%
Profit after tax	Rs m	-293,011	-312,384	NA
Gross profit margin	%	39.7	41.7
Effective tax rate	%	0.0	-2.7
Net profit margin	%	-69.5	-73.2

For Investors: Our Big Prediction

VODAFONE IDEA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 541 billion as compared to Rs 600 billion in FY23, thereby witnessing an decrease of -9.8%.
• Long-term debt stood at Rs 2,029 billion as compared to Rs 1,893 billion during FY23, a growth of 7.2%.
• Current assets fell 7% and stood at Rs 129 billion, while fixed assets fell 11% and stood at Rs 1,721 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,850 billion as against Rs 2,072 billion during FY23, thereby witnessing a fall of 11%.

VODAFONE IDEA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-743,629	-1,041,688	NA
Current Liabilities	Rs m	600,227	541,413	-9.8
Long-term Debt	Rs m	1,892,901	2,028,962	7.2
Total Liabilities	Rs m	2,072,292	1,849,839	-10.7
Current assets	Rs m	138,536	128,605	-7.2
Fixed Assets	Rs m	1,933,263	1,720,741	-11.0
Total Assets	Rs m	2,072,292	1,849,839	-10.7

VODAFONE IDEA Cash Flow Statement Analysis

• VODAFONE IDEA's cash flow from operating activities (CFO) during FY24 stood at Rs 208 billion, an improvement of 10.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -19 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -190 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -610 million from the Rs -12 billion net cash flows seen during FY23.

VODAFONE IDEA 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	188,687	208,261	10.4%
Cash Flow from Investing Activities	Rs m	-54,136	-19,068	-
Cash Flow from Financing Activities	Rs m	-146,795	-189,803	-
Net Cash Flow	Rs m	-12,244	-610	-

Current Valuations for VODAFONE IDEA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.2, an decline from the EPS of Rs -6.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 15.7, stands at -3.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.0 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at -7.1 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	8.7	8.5
TTM Earnings per share	Rs	-6.0	-6.2
Diluted earnings per share	Rs	-4.3	-4.6
Price to Cash Flow	x	-6.4	-7.1
TTM P/E ratio	x	-1.4	-3.4
Price / Book Value ratio	x	-0.6	-0.6
Market Cap	Rs m	419,862	607,202
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VODAFONE IDEA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.2x during FY24, from 0.2x 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 -0.2x during FY24, from -0.3x 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 30.0% during FY24, from 39.4% 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 -4.7% during FY24, from -5.2% 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 -3.0% 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	0.2	0.2
Debtors’ Days	Days	19	19
Interest coverage	x	-0.3	-0.2
Debt to equity ratio	x	-2.5	-1.9
Return on assets	%	-2.9	-3.0
Return on equity	%	39.4	30.0
Return on capital employed	%	-5.2	-4.7

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

VODAFONE IDEA Share Price Performance

Over the last one year, VODAFONE IDEA share price has moved up from Rs 8.4 to Rs 15.7, registering a gain of Rs 7.4 or around 87.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 18,347.0 (up 1.4%). Over the last one year it has moved up from 13,950.8 to 18,347.0, a gain of 4,396 points (up 31.5%).

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

(To know more, check out historical annual results for VODAFONE IDEA and quarterly results for VODAFONE IDEA)