VADILAL INDUSTRIES 2023-24 Annual Report Analysis

Fri, 20 Sep

VADILAL 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.

VADILAL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 38.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.5% in FY24 as against 15.0% in FY23.
• Depreciation charges increased by 16.8% and finance costs increased by 12.9% YoY, respectively.
• Other income declined by 25.0% YoY.
• Net profit for the year grew by 51.6% YoY.
• Net profit margins during the year grew from 9.1% in FY23 to 13.0% in FY24.

VADILAL INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,579	11,253	6.4%
Other income	Rs m	171	128	-25.0%
Total Revenues	Rs m	10,750	11,382	5.9%
Gross profit	Rs m	1,592	2,199	38.2%
Depreciation	Rs m	299	349	16.8%
Interest	Rs m	159	179	12.9%
Profit before tax	Rs m	1,306	1,800	37.8%
Tax	Rs m	343	340	-0.8%
Profit after tax	Rs m	963	1,460	51.6%
Gross profit margin	%	15.0	19.5
Effective tax rate	%	26.2	18.9
Net profit margin	%	9.1	13.0

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VADILAL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -22.2%.
• Long-term debt down at Rs 376 million as compared to Rs 597 million during FY23, a fall of 36.9%.
• Current assets rose 9% and stood at Rs 4 billion, while fixed assets rose 10% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 9%.

VADILAL INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,973	5,423	36.5
Current Liabilities	Rs m	2,754	2,141	-22.2
Long-term Debt	Rs m	597	376	-36.9
Total Liabilities	Rs m	8,379	9,169	9.4
Current assets	Rs m	3,974	4,332	9.0
Fixed Assets	Rs m	4,405	4,837	9.8
Total Assets	Rs m	8,379	9,169	9.4

VADILAL INDUSTRIES Cash Flow Statement Analysis

• VADILAL INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 386.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -660 million, an improvement of 6.6% 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 122 million from the Rs -134 million net cash flows seen during FY23.

VADILAL 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	395	1,920	386.2%
Cash Flow from Investing Activities	Rs m	-619	-660	-
Cash Flow from Financing Activities	Rs m	90	-1,139	-
Net Cash Flow	Rs m	-134	122	-

Current Valuations for VADILAL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 203.0, an improvement from the EPS of Rs 133.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,338.6, stands at 20.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 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	1,471.3	1,565.1
TTM Earnings per share	Rs	133.9	203.0
Diluted earnings per share	Rs	134.0	203.1
Price to Cash Flow	x	12.6	12.7
TTM P/E ratio	x	16.4	20.5
Price / Book Value ratio	x	3.9	4.2
Market Cap	Rs m	15,495	22,917
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for VADILAL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.4x 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 11.1x during FY24, from 9.2x 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 26.9% 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 improved and stood at 34.1% during FY24, from 32.0% 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 17.9% during FY24, from 13.4% 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	1.4	2.0
Debtors’ Days	Days	3	3
Interest coverage	x	9.2	11.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	13.4	17.9
Return on equity	%	24.2	26.9
Return on capital employed	%	32.0	34.1

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

VADILAL INDUSTRIES Share Price Performance

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