VLS FINANCE 2023-24 Annual Report Analysis

Tue, 29 Oct

VLS FINANCE 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.

VLS FINANCE Income Statement Analysis

• Operating income during the year rose 396.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 533.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 93.5% in FY24 as against 73.2% in FY23.
• Depreciation charges increased by 33.9% and finance costs increased by 35.5% YoY, respectively.
• Other income grew by 398.5% YoY.
• Net profit for the year grew by 479.5% YoY.
• Net profit margins during the year grew from 68.2% in FY23 to 79.7% in FY24.

VLS FINANCE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	821	4,070	396.0%
Other income	Rs m	23	117	398.5%
Total Revenues	Rs m	844	4,187	396.1%
Gross profit	Rs m	601	3,805	533.1%
Depreciation	Rs m	43	57	33.9%
Interest	Rs m	2	2	35.5%
Profit before tax	Rs m	580	3,862	565.6%
Tax	Rs m	21	619	2,910.6%
Profit after tax	Rs m	560	3,243	479.5%
Gross profit margin	%	73.2	93.5
Effective tax rate	%	3.5	16.0
Net profit margin	%	68.2	79.7

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VLS FINANCE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 93 million as compared to Rs 92 million in FY23, thereby witnessing an increase of 0.5%.
• Current assets rose 7% and stood at Rs 2 billion, while fixed assets rose 19% and stood at Rs 35 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 37 billion as against Rs 31 billion during FY23, thereby witnessing a growth of 18%.

VLS FINANCE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	25,006	29,826	19.3
Current Liabilities	Rs m	92	93	0.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	31,004	36,660	18.2
Current assets	Rs m	1,968	2,114	7.4
Fixed Assets	Rs m	29,035	34,546	19.0
Total Assets	Rs m	31,004	36,660	18.2

VLS FINANCE Cash Flow Statement Analysis

• VLS FINANCE's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 2,560.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -125 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -154 million from the Rs -336 million net cash flows seen during FY23.

VLS FINANCE 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	73	1,945	2,560.7%
Cash Flow from Investing Activities	Rs m	269	-1,973	-
Cash Flow from Financing Activities	Rs m	-678	-125	-
Net Cash Flow	Rs m	-336	-154	-

Current Valuations for VLS FINANCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 93.2, an improvement from the EPS of Rs 15.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 382.1, stands at 4.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 2.4 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	23.3	117.0
TTM Earnings per share	Rs	15.9	93.2
Diluted earnings per share	Rs	16.5	95.4
Price to Cash Flow	x	8.4	2.4
TTM P/E ratio	x	9.0	4.0
Price / Book Value ratio	x	0.2	0.3
Market Cap	Rs m	5,513	8,051
Dividends per share (Unadj.)	Rs	1.5	2.5

Ratio Analysis for VLS FINANCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 22.8x during FY24, from 21.3x 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 1,875.9x during FY24, from 382.8x 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 improved and stood at 10.9% during FY24, from 2.2% 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 13.0% during FY24, from 2.3% 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 improved and stood at 8.9% during FY24, from 1.8% 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	21.3	22.8
Debtors’ Days	Days	816	155
Interest coverage	x	382.8	1,875.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.8	8.9
Return on equity	%	2.2	10.9
Return on capital employed	%	2.3	13.0

To see how VLS FINANCE has performed over the last 5 years, please visit here.

VLS FINANCE Share Price Performance

Over the last one year, VLS FINANCE share price has moved down from Rs 188.9 to Rs 0.0, registering a loss of Rs 188.9 or around 100.0%.

Overall, the NIFTY 50 is down 0.0% over the year.

(To know more, check out historical annual results for VLS FINANCE and quarterly results for VLS FINANCE)