VAKRANGEE 2023-24 Annual Report Analysis

Mon, 9 Sep

VAKRANGEE 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.

VAKRANGEE Income Statement Analysis

• Operating income during the year rose 7.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 54.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY24 as against 8.8% in FY23.
• Depreciation charges increased by 1.1% and finance costs increased by 409.0% YoY, respectively.
• Other income grew by 5.5% YoY.
• Net profit for the year grew by 333.1% YoY.
• Net profit margins during the year grew from 0.5% in FY23 to 2.0% in FY24.

VAKRANGEE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,973	2,126	7.7%
Other income	Rs m	23	24	5.5%
Total Revenues	Rs m	1,996	2,150	7.7%
Gross profit	Rs m	174	268	54.2%
Depreciation	Rs m	155	157	1.1%
Interest	Rs m	15	77	409.0%
Profit before tax	Rs m	27	59	118.8%
Tax	Rs m	17	15	-9.9%
Profit after tax	Rs m	10	44	333.1%
Gross profit margin	%	8.8	12.6
Effective tax rate	%	62.5	25.8
Net profit margin	%	0.5	2.0

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VAKRANGEE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -21.0%.
• Long-term debt down at Rs 76 million as compared to Rs 124 million during FY23, a fall of 38.8%.
• Current assets rose 5% and stood at Rs 2 billion, while fixed assets fell 4% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 1%.

VAKRANGEE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,212	1,201	-0.9
Current Liabilities	Rs m	1,417	1,119	-21.0
Long-term Debt	Rs m	124	76	-38.8
Total Liabilities	Rs m	2,981	3,000	0.6
Current assets	Rs m	1,491	1,569	5.3
Fixed Assets	Rs m	1,490	1,431	-4.0
Total Assets	Rs m	2,981	3,000	0.6

VAKRANGEE Cash Flow Statement Analysis

• VAKRANGEE's cash flow from operating activities (CFO) during FY24 stood at Rs 311 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -66 million, an improvement of 28.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -93 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 152 million from the Rs -216 million net cash flows seen during FY23.

VAKRANGEE 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	-416	311	-
Cash Flow from Investing Activities	Rs m	-52	-66	-
Cash Flow from Financing Activities	Rs m	252	-93	-
Net Cash Flow	Rs m	-216	152	-

Current Valuations for VAKRANGEE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19.9, stands at 351.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.8 times, while the price to sales ratio stands at 9.9 times.
• The company's price to cash flow (P/CF) ratio stood at 123.7 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	1.9	2.0
TTM Earnings per share	Rs	0.0	0.0
Diluted earnings per share	Rs	0.0	0.0
Price to Cash Flow	x	104.5	123.7
TTM P/E ratio	x	1,720.5	351.4
Price / Book Value ratio	x	26.4	20.6
Market Cap	Rs m	31,971	24,793
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for VAKRANGEE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.1x 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 1.8x during FY24, from 2.8x 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 3.6% during FY24, from 0.8% 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 improved and stood at 10.6% during FY24, from 3.1% 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 4.0% during FY24, from 0.8% 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	1.1	1.4
Debtors’ Days	Days	741	754
Interest coverage	x	2.8	1.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	0.8	4.0
Return on equity	%	0.8	3.6
Return on capital employed	%	3.1	10.6

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

VAKRANGEE Share Price Performance

Over the last one year, VAKRANGEE share price has moved up from Rs 16.5 to Rs 19.9, registering a gain of Rs 3.4 or around 20.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,668.4 (down 0.4%). Over the last one year it has moved up from 32,697.8 to 42,668.4, a gain of 9,971 points (up 30.5%).

Overall, the S&P BSE SENSEX is up 24.0% over the year.

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