VALIANT COMM 2023-24 Annual Report Analysis

Tue, 24 Sep

VALIANT COMM 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.

VALIANT COMM Income Statement Analysis

• Operating income during the year rose 47.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 139.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.3% in FY24 as against 13.7% in FY23.
• Depreciation charges increased by 6.9% and finance costs increased by 144.3% YoY, respectively.
• Other income grew by 244.9% YoY.
• Net profit for the year grew by 269.1% YoY.
• Net profit margins during the year grew from 5.3% in FY23 to 13.4% in FY24.

VALIANT COMM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	315	463	47.1%
Other income	Rs m	1	4	244.9%
Total Revenues	Rs m	316	468	47.9%
Gross profit	Rs m	43	103	139.4%
Depreciation	Rs m	21	23	6.9%
Interest	Rs m	1	2	144.3%
Profit before tax	Rs m	22	83	270.3%
Tax	Rs m	6	21	274.0%
Profit after tax	Rs m	17	62	269.1%
Gross profit margin	%	13.7	22.3
Effective tax rate	%	25.0	25.3
Net profit margin	%	5.3	13.4

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VALIANT COMM Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 51 million as compared to Rs 55 million in FY23, thereby witnessing an decrease of -7.9%.
• Long-term debt down at Rs 14 million as compared to Rs 14 million during FY23, a fall of 0.1%.
• Current assets rose 61% and stood at Rs 481 million, while fixed assets rose 4% and stood at Rs 99 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 580 million as against Rs 394 million during FY23, thereby witnessing a growth of 47%.

VALIANT COMM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	329	518	57.4
Current Liabilities	Rs m	55	51	-7.9
Long-term Debt	Rs m	14	14	-0.1
Total Liabilities	Rs m	394	580	47.3
Current assets	Rs m	298	481	61.4
Fixed Assets	Rs m	96	99	3.6
Total Assets	Rs m	394	580	47.3

VALIANT COMM Cash Flow Statement Analysis

• VALIANT COMM's cash flow from operating activities (CFO) during FY24 stood at Rs 31 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -33 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 125 million, an improvement of 662% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 125 million from the Rs 4 million net cash flows seen during FY23.

VALIANT COMM 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	31	31	0.0%
Cash Flow from Investing Activities	Rs m	-43	-33	-
Cash Flow from Financing Activities	Rs m	16	125	662.3%
Net Cash Flow	Rs m	4	125	2,858.5%

Current Valuations for VALIANT COMM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 715.8, stands at 64.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.5 times, while the price to sales ratio stands at 11.8 times.
• The company's price to cash flow (P/CF) ratio stood at 27.1 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	43.6	60.7
TTM Earnings per share	Rs	2.3	8.1
Diluted earnings per share	Rs	2.2	8.1
Price to Cash Flow	x	27.9	27.1
TTM P/E ratio	x	63.1	64.8
Price / Book Value ratio	x	3.2	4.4
Market Cap	Rs m	1,060	2,292
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VALIANT COMM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 9.5x during FY24, from 5.4x 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 39.6x during FY24, from 26.5x 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 12.0% during FY24, from 5.1% 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 16.0% during FY24, from 6.8% 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 11.1% during FY24, from 4.5% 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	5.4	9.5
Debtors’ Days	Days	42,493	85,589
Interest coverage	x	26.5	39.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.5	11.1
Return on equity	%	5.1	12.0
Return on capital employed	%	6.8	16.0

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

VALIANT COMM Share Price Performance

Over the last one year, VALIANT COMM share price has moved up from Rs 291.3 to Rs 715.8, registering a gain of Rs 424.5 or around 145.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 19,772.1 (down 0.3%). Over the last one year it has moved up from 14,806.4 to 19,772.1, a gain of 4,966 points (up 33.5%).

Overall, the S&P BSE SENSEX is up 27.2% over the year.

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