VINSYS IT SERVICES 2023-24 Annual Report Analysis

Wed, 9 Oct

VINSYS IT SERVICES 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.

VINSYS IT SERVICES Income Statement Analysis

• Operating income during the year rose 79.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.0% in FY24 as against 20.2% in FY23.
• Depreciation charges increased by 193.3% and finance costs increased by 13.6% YoY, respectively.
• Other income declined by 23.6% YoY.
• Net profit for the year grew by 52.6% YoY.
• Net profit margins during the year declined from 15.8% in FY23 to 13.4% in FY24.

VINSYS IT SERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	949	1,705	79.8%
Other income	Rs m	15	11	-23.6%
Total Revenues	Rs m	963	1,716	78.2%
Gross profit	Rs m	192	290	50.9%
Depreciation	Rs m	10	29	193.3%
Interest	Rs m	22	25	13.6%
Profit before tax	Rs m	174	247	41.4%
Tax	Rs m	24	17	-28.3%
Profit after tax	Rs m	150	229	52.6%
Gross profit margin	%	20.2	17.0
Effective tax rate	%	13.9	7.0
Net profit margin	%	15.8	13.4

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VINSYS IT SERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 206 million as compared to Rs 292 million in FY23, thereby witnessing an decrease of -29.6%.
• Long-term debt down at Rs 157 million as compared to Rs 181 million during FY23, a fall of 13.4%.
• Current assets rose 96% and stood at Rs 871 million, while fixed assets rose 76% and stood at Rs 494 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 725 million during FY23, thereby witnessing a growth of 88%.

VINSYS IT SERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	245	1,010	312.4
Current Liabilities	Rs m	292	206	-29.6
Long-term Debt	Rs m	181	157	-13.4
Total Liabilities	Rs m	725	1,365	88.4
Current assets	Rs m	443	871	96.5
Fixed Assets	Rs m	281	494	75.6
Total Assets	Rs m	725	1,365	88.4

VINSYS IT SERVICES Cash Flow Statement Analysis

• VINSYS IT SERVICES's cash flow from operating activities (CFO) during FY24 stood at Rs -107 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -337 million, an improvement of 80.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 471 million, an improvement of 735% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 28 million from the Rs 73 million net cash flows seen during FY23.

VINSYS IT SERVICES 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	204	-107	-
Cash Flow from Investing Activities	Rs m	-187	-337	-
Cash Flow from Financing Activities	Rs m	56	471	735.0%
Net Cash Flow	Rs m	73	28	-62.5%

Current Valuations for VINSYS IT SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.6, an improvement from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 372.0, stands at 23.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	94.9	116.1
TTM Earnings per share	Rs	15.0	15.6
Diluted earnings per share	Rs	10.2	15.6
Price to Cash Flow	x	0.0	15.0
TTM P/E ratio	x	0.0	23.8
Price / Book Value ratio	x	0.0	3.8
Market Cap	Rs m	0	3,858
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VINSYS IT SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY24, from 1.5x 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 10.7x during FY24, from 8.8x 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 22.7% during FY24, from 61.3% 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 23.3% during FY24, from 46.2% 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 18.7% during FY24, from 23.8% 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	1.5	4.2
Debtors’ Days	Days	900	931
Interest coverage	x	8.8	10.7
Debt to equity ratio	x	0.7	0.2
Return on assets	%	23.8	18.7
Return on equity	%	61.3	22.7
Return on capital employed	%	46.2	23.3

To see how VINSYS IT SERVICES has performed over the last 5 years, please visit here.

VINSYS IT SERVICES Share Price Performance

Over the last one year, VINSYS IT SERVICES share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 43,190.7 (up 1.1%). Over the last one year it has moved up from 32,584.2 to 43,190.7, a gain of 10,606 points (up 32.6%).

Overall, the NIFTY 50 is up 0.4% over the year.

(To know more, check out historical annual results for VINSYS IT SERVICES and quarterly results for VINSYS IT SERVICES)