VIKAS LIFECARE 2023-24 Annual Report Analysis

Thu, 17 Oct

VIKAS LIFECARE 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.

VIKAS LIFECARE Income Statement Analysis

• Operating income during the year fell 12.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.6% in FY24 as against 4.2% in FY23.
• Depreciation charges increased by 5.4% and finance costs increased by 3.2% YoY, respectively.
• Other income grew by 574.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 3.3% in FY23 to 4.6% in FY24.

VIKAS LIFECARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,760	4,167	-12.5%
Other income	Rs m	39	262	574.9%
Total Revenues	Rs m	4,799	4,429	-7.7%
Gross profit	Rs m	-199	26	NA
Depreciation	Rs m	30	32	5.4%
Interest	Rs m	23	24	3.2%
Profit before tax	Rs m	-214	232	NA
Tax	Rs m	-59	39	NA
Profit after tax	Rs m	-155	193	NA
Gross profit margin	%	-4.2	0.6
Effective tax rate	%	27.4	16.9
Net profit margin	%	-3.3	4.6

Don't Miss: Key Information for Long-term Investors

VIKAS LIFECARE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 337 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -68.6%.
• Long-term debt stood at Rs 177 million as compared to Rs 96 million during FY23, a growth of 85.2%.
• Current assets rose 4% and stood at Rs 2 billion, while fixed assets rose 37% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 18%.

VIKAS LIFECARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,313	4,608	39.1
Current Liabilities	Rs m	1,073	337	-68.6
Long-term Debt	Rs m	96	177	85.2
Total Liabilities	Rs m	4,551	5,381	18.2
Current assets	Rs m	2,155	2,233	3.6
Fixed Assets	Rs m	2,269	3,109	37.0
Total Assets	Rs m	4,551	5,381	18.2

VIKAS LIFECARE Cash Flow Statement Analysis

• VIKAS LIFECARE's cash flow from operating activities (CFO) during FY24 stood at Rs -515 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -819 million, an improvement of 123.6% 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 42 million from the Rs 19 million net cash flows seen during FY23.

VIKAS LIFECARE 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	-1,122	-515	-
Cash Flow from Investing Activities	Rs m	-366	-819	-
Cash Flow from Financing Activities	Rs m	1,506	1,376	-8.6%
Net Cash Flow	Rs m	19	42	118.2%

Current Valuations for VIKAS LIFECARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4.8, stands at -1,323.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 38.9 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	3.3	2.5
TTM Earnings per share	Rs	-0.1	0.1
Diluted earnings per share	Rs	-0.1	0.1
Price to Cash Flow	x	-49.6	38.9
TTM P/E ratio	x	-39.9	-1,323.1
Price / Book Value ratio	x	2.2	1.9
Market Cap	Rs m	7,235	8,741
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VIKAS LIFECARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.6x 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 improved and stood at 10.8x during FY24, from -8.3x 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 4.2% during FY24, from -4.7% 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 5.4% during FY24, from -5.6% 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 4.0% during FY24, from -2.9% 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	6.6
Debtors’ Days	Days	1,299	1,213
Interest coverage	x	-8.3	10.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-2.9	4.0
Return on equity	%	-4.7	4.2
Return on capital employed	%	-5.6	5.4

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

VIKAS LIFECARE Share Price Performance

Over the last one year, VIKAS LIFECARE share price has moved down from Rs 5.1 to Rs 4.8, registering a loss of Rs 0.3 or around 5.5%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 30,024.4 (down 0.6%). Over the last one year it has moved up from 19,153.1 to 30,024.4, a gain of 10,871 points (up 56.8%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

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