VIP CLOTHING 2022-23 Annual Report Analysis

Fri, 25 Aug

VIP CLOTHING has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

VIP CLOTHING Income Statement Analysis

• Operating income during the year rose 9.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 179.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY23 as against 3.7% in FY22.
• Depreciation charges decreased by 20.4% and finance costs decreased by 4.1% YoY, respectively.
• Other income declined by 31.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.2% in FY22 to 3.3% in FY23.

VIP CLOTHING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,830	2,006	9.7%
Other income	Rs m	25	17	-31.0%
Total Revenues	Rs m	1,855	2,024	9.1%
Gross profit	Rs m	67	187	179.6%
Depreciation	Rs m	38	31	-20.4%
Interest	Rs m	95	91	-4.1%
Profit before tax	Rs m	-41	83	NA
Tax	Rs m	-19	17	NA
Profit after tax	Rs m	-22	66	NA
Gross profit margin	%	3.7	9.3
Effective tax rate	%	46.3	20.1
Net profit margin	%	-1.2	3.3

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VIP CLOTHING Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -10.6%.
• Long-term debt down at Rs 69 million as compared to Rs 100 million during FY22, a fall of 31.6%.
• Current assets rose 4% and stood at Rs 2 billion, while fixed assets fell 5% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 0%.

VIP CLOTHING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,334	1,399	4.9
Current Liabilities	Rs m	1,271	1,136	-10.6
Long-term Debt	Rs m	100	69	-31.6
Total Liabilities	Rs m	2,848	2,860	0.4
Current assets	Rs m	1,726	1,789	3.7
Fixed Assets	Rs m	1,122	1,071	-4.6
Total Assets	Rs m	2,848	2,860	0.4

VIP CLOTHING Cash Flow Statement Analysis

• VIP CLOTHING 's cash flow from operating activities (CFO) during FY23 stood at Rs 131 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 111 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -143 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 99 million from the Rs -30 million net cash flows seen during FY22.

VIP CLOTHING Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-35	131	-
Cash Flow from Investing Activities	Rs m	-2	111	-
Cash Flow from Financing Activities	Rs m	7	-143	-
Net Cash Flow	Rs m	-30	99	-

Current Valuations for VIP CLOTHING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an improvement from the EPS of Rs -0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 44.1, stands at 39.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 33.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	22.2	24.3
TTM Earnings per share	Rs	-0.3	0.8
Diluted earnings per share	Rs	-0.3	0.8
Price to Cash Flow	x	118.5	33.5
TTM P/E ratio	x	-87.5	39.3
Price / Book Value ratio	x	1.3	2.3
Market Cap	Rs m	1,793	3,248
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VIP CLOTHING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.4x during FY22. 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 1.9x during FY23, from 0.6x during FY22. 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 4.7% during FY23, from -1.7% during FY23. 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 11.9% during FY23, from 3.8% during FY22. 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 5.5% during FY23, from 2.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.6
Debtors’ Days	Days	1,205	1,209
Interest coverage	x	0.6	1.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	2.6	5.5
Return on equity	%	-1.7	4.7
Return on capital employed	%	3.8	11.9

To see how VIP CLOTHING has performed over the last 5 years, please visit here.

VIP CLOTHING Share Price Performance

Over the last one year, VIP CLOTHING share price has moved up from Rs 26.7 to Rs 44.1, registering a gain of Rs 17.5 or around 65.5%.

Overall, the S&P BSE SENSEX is up 9.9% over the year.

(To know more, check out historical annual results for VIP CLOTHING and quarterly results for VIP CLOTHING )