VISHAL FABRICS 2023-24 Annual Report Analysis

Thu, 8 Aug

VISHAL FABRICS 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.

VISHAL FABRICS Income Statement Analysis

• Operating income during the year fell 6.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.0% in FY24 as against 8.8% in FY23.
• Depreciation charges decreased by 2.1% and finance costs increased by 3.0% YoY, respectively.
• Other income declined by 71.0% YoY.
• Net profit for the year declined by 60.0% YoY.
• Net profit margins during the year declined from 3.4% in FY23 to 1.5% in FY24.

VISHAL FABRICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	15,479	14,501	-6.3%
Other income	Rs m	40	12	-71.0%
Total Revenues	Rs m	15,519	14,513	-6.5%
Gross profit	Rs m	1,357	1,010	-25.6%
Depreciation	Rs m	334	327	-2.1%
Interest	Rs m	374	385	3.0%
Profit before tax	Rs m	689	309	-55.1%
Tax	Rs m	161	98	-39.1%
Profit after tax	Rs m	528	211	-60.0%
Gross profit margin	%	8.8	7.0
Effective tax rate	%	23.4	31.7
Net profit margin	%	3.4	1.5

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

VISHAL FABRICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 9.3%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 3.0%.
• Current assets rose 12% and stood at Rs 6 billion, while fixed assets fell 5% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 6%.

VISHAL FABRICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,903	4,120	5.6
Current Liabilities	Rs m	3,244	3,545	9.3
Long-term Debt	Rs m	1,344	1,304	-3.0
Total Liabilities	Rs m	8,667	9,216	6.3
Current assets	Rs m	5,795	6,494	12.1
Fixed Assets	Rs m	2,872	2,723	-5.2
Total Assets	Rs m	8,667	9,216	6.3

VISHAL FABRICS Cash Flow Statement Analysis

• VISHAL FABRICS's cash flow from operating activities (CFO) during FY24 stood at Rs -56 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -179 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 249 million, an improvement of 125% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 14 million from the Rs -122 million net cash flows seen during FY23.

VISHAL FABRICS 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	736	-56	-
Cash Flow from Investing Activities	Rs m	119	-179	-
Cash Flow from Financing Activities	Rs m	-977	249	-
Net Cash Flow	Rs m	-122	14	-

Current Valuations for VISHAL FABRICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.1, an decline from the EPS of Rs 2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 41.4, stands at 34.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.5 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	78.3	73.4
TTM Earnings per share	Rs	2.7	1.1
Diluted earnings per share	Rs	2.7	1.1
Price to Cash Flow	x	3.8	7.5
TTM P/E ratio	x	6.2	34.7
Price / Book Value ratio	x	1.5	1.0
Market Cap	Rs m	5,909	4,049
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VISHAL FABRICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.8x 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 1.8x during FY24, from 2.8x 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 5.1% during FY24, from 13.5% 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 12.8% during FY24, from 20.3% 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 6.5% during FY24, from 10.4% 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	1.8	1.8
Debtors’ Days	Days	11	13
Interest coverage	x	2.8	1.8
Debt to equity ratio	x	0.3	0.3
Return on assets	%	10.4	6.5
Return on equity	%	13.5	5.1
Return on capital employed	%	20.3	12.8

To see how VISHAL FABRICS has performed over the last 5 years, please visit here.

VISHAL FABRICS Share Price Performance

Over the last one year, VISHAL FABRICS share price has moved up from Rs 16.2 to Rs 41.4, registering a gain of Rs 25.2 or around 155.7%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

(To know more, check out historical annual results for VISHAL FABRICS and quarterly results for VISHAL FABRICS)