VAIBHAV GLOBAL 2023-24 Annual Report Analysis

Tue, 16 Jul

VAIBHAV GLOBAL 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.

VAIBHAV GLOBAL Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.6% in FY24 as against 7.4% in FY23.
• Depreciation charges increased by 20.1% and finance costs increased by 42.9% YoY, respectively.
• Other income declined by 3.6% YoY.
• Net profit for the year grew by 20.5% YoY.
• Net profit margins during the year grew from 3.9% in FY23 to 4.2% in FY24.

VAIBHAV GLOBAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,909	30,410	13.0%
Other income	Rs m	276	266	-3.6%
Total Revenues	Rs m	27,185	30,676	12.8%
Gross profit	Rs m	1,996	2,604	30.5%
Depreciation	Rs m	778	934	20.1%
Interest	Rs m	82	117	42.9%
Profit before tax	Rs m	1,413	1,820	28.8%
Tax	Rs m	362	552	52.7%
Profit after tax	Rs m	1,051	1,267	20.5%
Gross profit margin	%	7.4	8.6
Effective tax rate	%	25.6	30.3
Net profit margin	%	3.9	4.2

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VAIBHAV GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 0.5%.
• Long-term debt down at Rs 14 million as compared to Rs 23 million during FY23, a fall of 38.9%.
• Current assets fell 1% and stood at Rs 12 billion, while fixed assets rose 20% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 18 billion during FY23, thereby witnessing a growth of 6%.

VAIBHAV GLOBAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,862	12,422	4.7
Current Liabilities	Rs m	5,215	5,239	0.5
Long-term Debt	Rs m	23	14	-38.9
Total Liabilities	Rs m	17,605	18,583	5.6
Current assets	Rs m	12,289	12,188	-0.8
Fixed Assets	Rs m	5,316	6,396	20.3
Total Assets	Rs m	17,605	18,583	5.6

VAIBHAV GLOBAL Cash Flow Statement Analysis

• VAIBHAV GLOBAL's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 117.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -491 million from the Rs 675 million net cash flows seen during FY23.

VAIBHAV GLOBAL 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	1,272	2,768	117.7%
Cash Flow from Investing Activities	Rs m	402	-1,839	-
Cash Flow from Financing Activities	Rs m	-1,027	-1,431	-
Net Cash Flow	Rs m	675	-491	-

Current Valuations for VAIBHAV GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.7, an improvement from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 326.4, stands at 42.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 30.7 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	163.2	183.7
TTM Earnings per share	Rs	6.4	7.7
Diluted earnings per share	Rs	6.3	7.6
Price to Cash Flow	x	24.7	30.7
TTM P/E ratio	x	43.0	42.7
Price / Book Value ratio	x	5.6	5.4
Market Cap	Rs m	66,657	67,687
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for VAIBHAV GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 2.4x 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 deteriorated and stood at 16.5x during FY24, from 18.2x 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 10.2% during FY24, from 8.9% 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 15.6% during FY24, from 12.6% 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 improved and stood at 7.5% during FY24, from 6.4% 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	2.4	2.3
Debtors’ Days	Days	326	376
Interest coverage	x	18.2	16.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.4	7.5
Return on equity	%	8.9	10.2
Return on capital employed	%	12.6	15.6

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

VAIBHAV GLOBAL Share Price Performance

Over the last one year, VAIBHAV GLOBAL share price has moved up from Rs 303.8 to Rs 326.4, registering a gain of Rs 22.6 or around 7.4%.

Overall, the S&P BSE SENSEX is up 23.4% over the year.

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