VIP INDUSTRIES 2023-24 Annual Report Analysis

Wed, 17 Jul

VIP INDUSTRIES 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.

VIP INDUSTRIES Income Statement Analysis

• Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.9% in FY24 as against 13.7% in FY23.
• Depreciation charges increased by 35.1% and finance costs increased by 88.2% YoY, respectively.
• Other income declined by 29.6% YoY.
• Net profit for the year declined by 64.4% YoY.
• Net profit margins during the year declined from 7.3% in FY23 to 2.4% in FY24.

VIP INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,823	22,450	7.8%
Other income	Rs m	171	120	-29.6%
Total Revenues	Rs m	20,994	22,570	7.5%
Gross profit	Rs m	2,845	2,231	-21.6%
Depreciation	Rs m	737	995	35.1%
Interest	Rs m	314	591	88.2%
Profit before tax	Rs m	1,965	766	-61.0%
Tax	Rs m	442	223	-49.6%
Profit after tax	Rs m	1,523	543	-64.4%
Gross profit margin	%	13.7	9.9
Effective tax rate	%	22.5	29.1
Net profit margin	%	7.3	2.4

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VIP INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 73.7%.
• Current assets rose 42% and stood at Rs 14 billion, while fixed assets rose 35% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 39%.

VIP INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,291	6,655	5.8
Current Liabilities	Rs m	6,330	10,995	73.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,264	24,003	39.0
Current assets	Rs m	10,188	14,423	41.6
Fixed Assets	Rs m	7,075	9,580	35.4
Total Assets	Rs m	17,264	24,003	39.0

VIP INDUSTRIES Cash Flow Statement Analysis

• VIP INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -760 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 392% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 103 million from the Rs 159 million net cash flows seen during FY23.

VIP INDUSTRIES 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	1,749	-1,317	-
Cash Flow from Investing Activities	Rs m	-845	-760	-
Cash Flow from Financing Activities	Rs m	-746	2,180	-
Net Cash Flow	Rs m	159	103	-35.1%

Current Valuations for VIP INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 10.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 479.4, stands at 125.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 54.1 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	147.0	158.2
TTM Earnings per share	Rs	10.8	3.8
Diluted earnings per share	Rs	10.7	3.8
Price to Cash Flow	x	36.0	54.1
TTM P/E ratio	x	53.4	125.3
Price / Book Value ratio	x	14.3	12.5
Market Cap	Rs m	89,990	83,191
Dividends per share (Unadj.)	Rs	4.5	2.0

Ratio Analysis for VIP INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.6x 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 2.3x during FY24, from 7.3x 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 declined and down at 8.2% during FY24, from 24.2% 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 20.4% during FY24, from 36.2% 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 4.7% during FY24, from 10.6% 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	1.6	1.3
Debtors’ Days	Days	4	5
Interest coverage	x	7.3	2.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.6	4.7
Return on equity	%	24.2	8.2
Return on capital employed	%	36.2	20.4

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

VIP INDUSTRIES Share Price Performance

Over the last one year, VIP INDUSTRIES share price has moved down from Rs 607.8 to Rs 479.4, registering a loss of Rs 128.4 or around 21.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 59,203.0 (up 0.1%). Over the last one year it has moved up from 42,838.6 to 59,203.0, a gain of 16,364 points (up 38.2%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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