VADILAL ENT 2022-23 Annual Report Analysis

Mon, 19 Feb

VADILAL ENT has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

VADILAL ENT Income Statement Analysis

• Operating income during the year rose 69.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.0% in FY23 as against 2.3% in FY22.
• Depreciation charges decreased by 5.7% and finance costs decreased by 38.2% YoY, respectively.
• Other income grew by 162.3% YoY.
• Net profit for the year grew by 179.8% YoY.
• Net profit margins during the year grew from 0.4% in FY22 to 0.7% in FY23.

VADILAL ENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,475	9,301	69.9%
Other income	Rs m	46	120	162.3%
Total Revenues	Rs m	5,521	9,421	70.6%
Gross profit	Rs m	123	90	-27.2%
Depreciation	Rs m	117	111	-5.7%
Interest	Rs m	22	13	-38.2%
Profit before tax	Rs m	30	86	186.5%
Tax	Rs m	8	24	204.6%
Profit after tax	Rs m	22	61	179.8%
Gross profit margin	%	2.3	1.0
Effective tax rate	%	26.8	28.5
Net profit margin	%	0.4	0.7

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VADILAL ENT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 23.3%.
• Long-term debt down at Rs 27 million as compared to Rs 28 million during FY22, a fall of 4.1%.
• Current assets rose 36% and stood at Rs 1 billion, while fixed assets rose 16% and stood at Rs 793 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 27%.

VADILAL ENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	53	111	109.2
Current Liabilities	Rs m	1,413	1,742	23.3
Long-term Debt	Rs m	28	27	-4.1
Total Liabilities	Rs m	1,477	1,869	26.5
Current assets	Rs m	791	1,076	36.0
Fixed Assets	Rs m	686	793	15.6
Total Assets	Rs m	1,477	1,869	26.5

VADILAL ENT Cash Flow Statement Analysis

• VADILAL ENT's cash flow from operating activities (CFO) during FY23 stood at Rs 71 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -22 million, an improvement of 77% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 20 million from the Rs 47 million net cash flows seen during FY22.

VADILAL ENT Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	244	71	-70.8%
Cash Flow from Investing Activities	Rs m	-102	-30	-
Cash Flow from Financing Activities	Rs m	-95	-22	-
Net Cash Flow	Rs m	47	20	-58.3%

Current Valuations for VADILAL ENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 71.5, an improvement from the EPS of Rs 25.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,599.0, stands at 50.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 28.1 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	6,366.2	10,815.0
TTM Earnings per share	Rs	25.5	71.5
Diluted earnings per share	Rs	25.5	71.3
Price to Cash Flow	x	10.6	15.6
TTM P/E ratio	x	67.1	50.4
Price / Book Value ratio	x	27.7	24.3
Market Cap	Rs m	1,462	2,685
Dividends per share (Unadj.)	Rs	1.3	1.5

Ratio Analysis for VADILAL ENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY23, from 0.6x during FY22. 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 7.4x during FY23, from 2.4x during FY22. 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 55.6% during FY23, from 41.6% during FY23. 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 72.1% during FY23, from 63.6% during FY22. 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 FY23, from 3.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.6	0.6
Debtors’ Days	Days	217	151
Interest coverage	x	2.4	7.4
Debt to equity ratio	x	0.5	0.2
Return on assets	%	3.0	4.0
Return on equity	%	41.6	55.6
Return on capital employed	%	63.6	72.1

To see how VADILAL ENT has performed over the last 5 years, please visit here.

VADILAL ENT Share Price Performance

Over the last one year, VADILAL ENT share price has moved up from Rs 1,709.6 to Rs 3,599.0, registering a gain of Rs 1,889.5 or around 110.5%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for VADILAL ENT and quarterly results for VADILAL ENT)