VEDANT FASHIONS (MANYAVAR) 2023-24 Annual Report Analysis

Mon, 12 Aug

VEDANT FASHIONS (MANYAVAR) 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.

VEDANT FASHIONS (MANYAVAR) Income Statement Analysis

• Operating income during the year rose 0.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 48.1% in FY24 as against 49.5% in FY23.
• Depreciation charges increased by 29.9% and finance costs increased by 41.4% YoY, respectively.
• Other income grew by 73.1% YoY.
• Net profit for the year declined by 3.5% YoY.
• Net profit margins during the year declined from 31.7% in FY23 to 30.3% in FY24.

VEDANT FASHIONS (MANYAVAR) Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,549	13,675	0.9%
Other income	Rs m	402	697	73.1%
Total Revenues	Rs m	13,952	14,372	3.0%
Gross profit	Rs m	6,708	6,581	-1.9%
Depreciation	Rs m	1,038	1,349	29.9%
Interest	Rs m	315	445	41.4%
Profit before tax	Rs m	5,758	5,484	-4.8%
Tax	Rs m	1,467	1,342	-8.5%
Profit after tax	Rs m	4,291	4,142	-3.5%
Gross profit margin	%	49.5	48.1
Effective tax rate	%	25.5	24.5
Net profit margin	%	31.7	30.3

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VEDANT FASHIONS (MANYAVAR) Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -4.5%.
• Current assets rose 3% and stood at Rs 17 billion, while fixed assets rose 39% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 28 billion during FY23, thereby witnessing a growth of 17%.

VEDANT FASHIONS (MANYAVAR) Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,922	15,935	14.5
Current Liabilities	Rs m	7,614	7,273	-4.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	28,291	33,132	17.1
Current assets	Rs m	17,025	17,462	2.6
Fixed Assets	Rs m	11,267	15,669	39.1
Total Assets	Rs m	28,291	33,132	17.1

VEDANT FASHIONS (MANYAVAR) Cash Flow Statement Analysis

• VEDANT FASHIONS (MANYAVAR)'s cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 2.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 120 million from the Rs 61 million net cash flows seen during FY23.

VEDANT FASHIONS (MANYAVAR) 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	4,698	4,831	2.8%
Cash Flow from Investing Activities	Rs m	-2,319	-1,095	-
Cash Flow from Financing Activities	Rs m	-2,318	-3,616	-
Net Cash Flow	Rs m	61	120	94.8%

Current Valuations for VEDANT FASHIONS (MANYAVAR)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an decline from the EPS of Rs 17.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,111.9, stands at 70.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.9 times, while the price to sales ratio stands at 19.7 times.
• The company's price to cash flow (P/CF) ratio stood at 52.4 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	55.8	56.3
TTM Earnings per share	Rs	17.7	17.1
Diluted earnings per share	Rs	17.7	17.1
Price to Cash Flow	x	51.9	52.4
TTM P/E ratio	x	64.5	70.2
Price / Book Value ratio	x	21.0	18.0
Market Cap	Rs m	292,064	287,485
Dividends per share (Unadj.)	Rs	9.0	8.5

Ratio Analysis for VEDANT FASHIONS (MANYAVAR)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 2.2x 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 deteriorated and stood at 13.3x during FY24, from 19.3x 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 26.0% during FY24, from 30.8% 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 declined and down at 37.2% during FY24, from 43.6% 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 13.8% during FY24, from 16.3% 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	2.2	2.4
Debtors’ Days	Days	128	151
Interest coverage	x	19.3	13.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.3	13.8
Return on equity	%	30.8	26.0
Return on capital employed	%	43.6	37.2

To see how VEDANT FASHIONS (MANYAVAR) has performed over the last 5 years, please visit here.

VEDANT FASHIONS (MANYAVAR) Share Price Performance

Over the last one year, VEDANT FASHIONS (MANYAVAR) share price has moved down from Rs 1,262.5 to Rs 1,111.9, registering a loss of Rs 150.6 or around 11.9%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for VEDANT FASHIONS (MANYAVAR) and quarterly results for VEDANT FASHIONS (MANYAVAR))