VASCON ENGINEERS 2023-24 Annual Report Analysis

Thu, 29 Aug

VASCON ENGINEERS 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.

VASCON ENGINEERS Income Statement Analysis

• Operating income during the year rose 3.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.2% in FY24 as against 11.4% in FY23.
• Depreciation charges increased by 20.8% and finance costs increased by 23.8% YoY, respectively.
• Other income grew by 79.7% YoY.
• Net profit for the year declined by 31.7% YoY.
• Net profit margins during the year declined from 9.8% in FY23 to 6.5% in FY24.

VASCON ENGINEERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,194	10,529	3.3%
Other income	Rs m	126	226	79.7%
Total Revenues	Rs m	10,319	10,754	4.2%
Gross profit	Rs m	1,160	859	-26.0%
Depreciation	Rs m	119	144	20.8%
Interest	Rs m	134	166	23.8%
Profit before tax	Rs m	1,033	775	-25.0%
Tax	Rs m	39	96	146.6%
Profit after tax	Rs m	994	679	-31.7%
Gross profit margin	%	11.4	8.2
Effective tax rate	%	3.8	12.3
Net profit margin	%	9.8	6.5

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VASCON ENGINEERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 18.4%.
• Long-term debt stood at Rs 791 million as compared to Rs 637 million during FY23, a growth of 24.2%.
• Current assets rose 12% and stood at Rs 14 billion, while fixed assets rose 15% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 13%.

VASCON ENGINEERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,012	9,747	8.1
Current Liabilities	Rs m	6,475	7,665	18.4
Long-term Debt	Rs m	637	791	24.2
Total Liabilities	Rs m	16,429	18,548	12.9
Current assets	Rs m	12,695	14,252	12.3
Fixed Assets	Rs m	3,695	4,259	15.2
Total Assets	Rs m	16,429	18,548	12.9

VASCON ENGINEERS Cash Flow Statement Analysis

• VASCON ENGINEERS's cash flow from operating activities (CFO) during FY24 stood at Rs -285 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -76 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 51 million, an improvement of 112% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -310 million from the Rs 275 million net cash flows seen during FY23.

VASCON ENGINEERS 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	1,037	-285	-
Cash Flow from Investing Activities	Rs m	-320	-76	-
Cash Flow from Financing Activities	Rs m	-441	51	-
Net Cash Flow	Rs m	275	-310	-

Current Valuations for VASCON ENGINEERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an decline from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 71.8, stands at 31.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.9 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	46.9	47.6
TTM Earnings per share	Rs	4.6	3.1
Diluted earnings per share	Rs	4.4	3.0
Price to Cash Flow	x	5.0	15.9
TTM P/E ratio	x	6.9	31.9
Price / Book Value ratio	x	0.7	1.3
Market Cap	Rs m	6,585	13,102
Dividends per share (Unadj.)	Rs	0.0	0.3

Ratio Analysis for VASCON ENGINEERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 2.0x 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 5.7x during FY24, from 8.7x 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 7.0% during FY24, from 11.0% 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 8.9% during FY24, from 12.1% 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 declined and down at 4.6% during FY24, from 6.9% 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	2.0	1.9
Debtors’ Days	Days	780	923
Interest coverage	x	8.7	5.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.9	4.6
Return on equity	%	11.0	7.0
Return on capital employed	%	12.1	8.9

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

VASCON ENGINEERS Share Price Performance

Over the last one year, VASCON ENGINEERS share price has moved up from Rs 61.3 to Rs 71.8, registering a gain of Rs 10.5 or around 17.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,495.6 (up 0.1%). Over the last one year it has moved up from 44,941.0 to 73,495.6, a gain of 28,555 points (up 63.5%).

Overall, the S&P BSE SENSEX is up 25.9% over the year.

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