VEDANTA 2023-24 Annual Report Analysis

Thu, 20 Jun

VEDANTA 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.

VEDANTA Income Statement Analysis

• Operating income during the year fell 2.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.4% in FY24 as against 23.2% in FY23.
• Depreciation charges increased by 1.6% and finance costs increased by 52.0% YoY, respectively.
• Other income declined by 10.6% YoY.
• Net profit for the year declined by 48.0% YoY.
• Net profit margins during the year declined from 9.8% in FY23 to 5.2% in FY24.

VEDANTA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,473,080	1,437,270	-2.4%
Other income	Rs m	28,510	25,500	-10.6%
Total Revenues	Rs m	1,501,590	1,462,770	-2.6%
Gross profit	Rs m	342,050	380,010	11.1%
Depreciation	Rs m	105,550	107,230	1.6%
Interest	Rs m	62,250	94,650	52.0%
Profit before tax	Rs m	202,760	203,630	0.4%
Tax	Rs m	57,700	128,260	122.3%
Profit after tax	Rs m	145,060	75,370	-48.0%
Gross profit margin	%	23.2	26.4
Effective tax rate	%	28.5	63.0
Net profit margin	%	9.8	5.2

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

VEDANTA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 787 billion as compared to Rs 870 billion in FY23, thereby witnessing an decrease of -9.6%.
• Long-term debt stood at Rs 506 billion as compared to Rs 435 billion during FY23, a growth of 16.5%.
• Current assets fell 14% and stood at Rs 519 billion, while fixed assets rose 7% and stood at Rs 1,362 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,881 billion as against Rs 1,883 billion during FY23, thereby witnessing a fall of 0%.

VEDANTA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	392,550	305,090	-22.3
Current Liabilities	Rs m	870,470	786,610	-9.6
Long-term Debt	Rs m	434,760	506,330	16.5
Total Liabilities	Rs m	1,883,030	1,881,180	-0.1
Current assets	Rs m	605,070	519,240	-14.2
Fixed Assets	Rs m	1,277,960	1,361,940	6.6
Total Assets	Rs m	1,883,030	1,881,180	-0.1

VEDANTA Cash Flow Statement Analysis

• VEDANTA's cash flow from operating activities (CFO) during FY24 stood at Rs 357 billion, an improvement of 7.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -137 billion, an improvement of 1,874.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -261 billion, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -41 billion from the Rs -17 billion net cash flows seen during FY23.

VEDANTA 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	330,650	356,540	7.8%
Cash Flow from Investing Activities	Rs m	-6,930	-136,860	-
Cash Flow from Financing Activities	Rs m	-341,420	-260,920	-
Net Cash Flow	Rs m	-17,450	-41,140	-

Current Valuations for VEDANTA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.3, an decline from the EPS of Rs 39.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 454.5, stands at 22.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 5.2 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	396.0	386.4
TTM Earnings per share	Rs	39.0	20.3
Diluted earnings per share	Rs	39.0	20.3
Price to Cash Flow	x	4.1	5.2
TTM P/E ratio	x	7.0	22.4
Price / Book Value ratio	x	3.1	3.1
Market Cap	Rs m	1,203,141	946,461
Dividends per share (Unadj.)	Rs	101.5	29.5

Ratio Analysis for VEDANTA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY24, from 0.7x 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 3.2x during FY24, from 4.3x 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 24.7% during FY24, from 37.0% 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 36.8% during FY24, from 32.0% 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 9.0% during FY24, from 11.0% 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	0.7	0.7
Debtors’ Days	Days	1	1
Interest coverage	x	4.3	3.2
Debt to equity ratio	x	1.1	1.7
Return on assets	%	11.0	9.0
Return on equity	%	37.0	24.7
Return on capital employed	%	32.0	36.8

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

VEDANTA Share Price Performance

Over the last one year, VEDANTA share price has moved up from Rs 282.6 to Rs 454.5, registering a gain of Rs 171.9 or around 60.8%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

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