VIMTA LABS 2023-24 Annual Report Analysis

Thu, 27 Jun

VIMTA LABS 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.

VIMTA LABS Income Statement Analysis

• Operating income during the year rose 0.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.3% in FY24 as against 29.8% in FY23.
• Depreciation charges increased by 11.3% and finance costs decreased by 19.8% YoY, respectively.
• Other income grew by 16.3% YoY.
• Net profit for the year declined by 14.9% YoY.
• Net profit margins during the year declined from 15.1% in FY23 to 12.9% in FY24.

VIMTA LABS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,182	3,183	0.0%
Other income	Rs m	34	40	16.3%
Total Revenues	Rs m	3,216	3,223	0.2%
Gross profit	Rs m	949	868	-8.6%
Depreciation	Rs m	307	342	11.3%
Interest	Rs m	26	21	-19.8%
Profit before tax	Rs m	650	545	-16.2%
Tax	Rs m	168	135	-19.9%
Profit after tax	Rs m	482	410	-14.9%
Gross profit margin	%	29.8	27.3
Effective tax rate	%	25.9	24.7
Net profit margin	%	15.1	12.9

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VIMTA LABS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 541 million as compared to Rs 573 million in FY23, thereby witnessing an decrease of -5.6%.
• Long-term debt down at Rs 91 million as compared to Rs 99 million during FY23, a fall of 8.3%.
• Current assets fell 4% and stood at Rs 2 billion, while fixed assets rose 21% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 10%.

VIMTA LABS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,754	3,130	13.6
Current Liabilities	Rs m	573	541	-5.6
Long-term Debt	Rs m	99	91	-8.3
Total Liabilities	Rs m	3,580	3,923	9.6
Current assets	Rs m	1,637	1,576	-3.7
Fixed Assets	Rs m	1,944	2,347	20.7
Total Assets	Rs m	3,580	3,923	9.6

VIMTA LABS Cash Flow Statement Analysis

• VIMTA LABS's cash flow from operating activities (CFO) during FY24 stood at Rs 609 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -760 million, an improvement of 32.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -19 million, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -171 million from the Rs 197 million net cash flows seen during FY23.

VIMTA LABS 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	879	609	-30.8%
Cash Flow from Investing Activities	Rs m	-573	-760	-
Cash Flow from Financing Activities	Rs m	-110	-19	-
Net Cash Flow	Rs m	197	-171	-

Current Valuations for VIMTA LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an decline from the EPS of Rs 21.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 487.0, stands at 26.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.8 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	143.8	143.6
TTM Earnings per share	Rs	21.8	18.5
Diluted earnings per share	Rs	21.7	18.5
Price to Cash Flow	x	8.8	13.8
TTM P/E ratio	x	14.5	26.3
Price / Book Value ratio	x	3.3	3.3
Market Cap	Rs m	9,171	10,402
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for VIMTA LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY24, from 2.9x 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 26.7x during FY24, from 25.6x 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 13.1% during FY24, from 17.5% 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 declined and down at 17.6% during FY24, from 23.7% 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 11.0% during FY24, from 14.2% 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	2.9	2.9
Debtors’ Days	Days	92	100
Interest coverage	x	25.6	26.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.2	11.0
Return on equity	%	17.5	13.1
Return on capital employed	%	23.7	17.6

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

VIMTA LABS Share Price Performance

Over the last one year, VIMTA LABS share price has moved down from Rs 400.5 to Rs 0.0, registering a loss of Rs 400.5 or around 100.0%.

Overall, the NIFTY 50 is down 0.1% over the year.

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