VINDHYA TELELINKS 2023-24 Annual Report Analysis

Wed, 10 Jul

VINDHYA TELELINKS 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.

VINDHYA TELELINKS Income Statement Analysis

• Operating income during the year rose 40.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.4% in FY24 as against 11.2% in FY23.
• Depreciation charges increased by 36.4% and finance costs increased by 20.4% YoY, respectively.
• Other income grew by 71.0% YoY.
• Net profit for the year grew by 52.5% YoY.
• Net profit margins during the year grew from 6.4% in FY23 to 6.9% in FY24.

VINDHYA TELELINKS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	29,001	40,865	40.9%
Other income	Rs m	138	236	71.0%
Total Revenues	Rs m	29,139	41,101	41.1%
Gross profit	Rs m	3,236	4,653	43.8%
Depreciation	Rs m	177	242	36.4%
Interest	Rs m	731	880	20.4%
Profit before tax	Rs m	2,466	3,767	52.8%
Tax	Rs m	613	940	53.5%
Profit after tax	Rs m	1,853	2,827	52.5%
Gross profit margin	%	11.2	11.4
Effective tax rate	%	24.8	25.0
Net profit margin	%	6.4	6.9

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VINDHYA TELELINKS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 17 billion as compared to Rs 16 billion in FY23, thereby witnessing an increase of 6.2%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 20.4%.
• Current assets rose 4% and stood at Rs 28 billion, while fixed assets rose 18% and stood at Rs 40 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 68 billion as against Rs 61 billion during FY23, thereby witnessing a growth of 12%.

VINDHYA TELELINKS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	34,115	39,733	16.5
Current Liabilities	Rs m	15,754	16,725	6.2
Long-term Debt	Rs m	3,618	2,881	-20.4
Total Liabilities	Rs m	60,684	67,869	11.8
Current assets	Rs m	27,015	28,156	4.2
Fixed Assets	Rs m	33,669	39,712	17.9
Total Assets	Rs m	60,684	67,869	11.8

VINDHYA TELELINKS Cash Flow Statement Analysis

• VINDHYA TELELINKS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 1,189.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -410 million, an improvement of 35.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 319 million net cash flows seen during FY23.

VINDHYA TELELINKS 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	342	4,411	1,189.5%
Cash Flow from Investing Activities	Rs m	-302	-410	-
Cash Flow from Financing Activities	Rs m	279	-2,837	-
Net Cash Flow	Rs m	319	1,165	265.0%

Current Valuations for VINDHYA TELELINKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 238.6, an improvement from the EPS of Rs 156.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,476.6, stands at 26.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 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	2,447.4	3,448.5
TTM Earnings per share	Rs	156.4	238.6
Diluted earnings per share	Rs	156.4	238.5
Price to Cash Flow	x	10.2	8.8
TTM P/E ratio	x	14.6	26.2
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	15,881	26,955
Dividends per share (Unadj.)	Rs	15.0	15.0

Ratio Analysis for VINDHYA TELELINKS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 1.7x 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 improved and stood at 5.3x during FY24, from 4.4x 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 7.1% during FY24, from 5.4% 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 10.9% during FY24, from 8.5% 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 5.5% during FY24, from 4.3% 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	1.7	1.7
Debtors’ Days	Days	1,292	830
Interest coverage	x	4.4	5.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.3	5.5
Return on equity	%	5.4	7.1
Return on capital employed	%	8.5	10.9

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

VINDHYA TELELINKS Share Price Performance

Over the last one year, VINDHYA TELELINKS share price has moved up from Rs 1,903.2 to Rs 2,476.6, registering a gain of Rs 573.4 or around 30.1%.

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

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