VERANDA LEARNING 2023-24 Annual Report Analysis

Wed, 9 Oct

VERANDA LEARNING 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.

VERANDA LEARNING Income Statement Analysis

• Operating income during the year rose 124.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.1% in FY24 as against 44.5% in FY23.
• Depreciation charges increased by 43.8% and finance costs increased by 634.8% YoY, respectively.
• Other income declined by 78.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 49.1% in FY23 to 21.0% in FY24.

VERANDA LEARNING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,614	3,617	124.2%
Other income	Rs m	386	83	-78.5%
Total Revenues	Rs m	1,999	3,700	85.1%
Gross profit	Rs m	-718	545	NA
Depreciation	Rs m	455	654	43.8%
Interest	Rs m	107	787	634.8%
Profit before tax	Rs m	-894	-813	NA
Tax	Rs m	-102	-51	NA
Profit after tax	Rs m	-792	-761	NA
Gross profit margin	%	-44.5	15.1
Effective tax rate	%	11.4	6.3
Net profit margin	%	-49.1	-21.0

Don't Miss: Key Information for Long-term Investors

VERANDA LEARNING Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 439.3%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 33.8%.
• Current assets rose 19% and stood at Rs 2 billion, while fixed assets rose 95% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 83%.

VERANDA LEARNING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,868	3,535	23.2
Current Liabilities	Rs m	1,045	5,637	439.3
Long-term Debt	Rs m	2,212	1,465	-33.8
Total Liabilities	Rs m	8,867	16,221	82.9
Current assets	Rs m	1,356	1,611	18.8
Fixed Assets	Rs m	7,511	14,611	94.5
Total Assets	Rs m	8,867	16,221	82.9

VERANDA LEARNING Cash Flow Statement Analysis

• VERANDA LEARNING's cash flow from operating activities (CFO) during FY24 stood at Rs 267 million, an improvement of 78.5% 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 1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -651 million from the Rs 361 million net cash flows seen during FY23.

VERANDA LEARNING 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	149	267	78.5%
Cash Flow from Investing Activities	Rs m	-4,236	-2,323	-
Cash Flow from Financing Activities	Rs m	3,633	1,394	-61.6%
Net Cash Flow	Rs m	361	-651	-

Current Valuations for VERANDA LEARNING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.0, an improvement from the EPS of Rs -12.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 274.1, stands at -23.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at -158.5 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	26.2	52.3
TTM Earnings per share	Rs	-12.9	-11.0
Diluted earnings per share	Rs	-11.1	-10.7
Price to Cash Flow	x	-43.1	-158.5
TTM P/E ratio	x	-18.3	-23.9
Price / Book Value ratio	x	5.7	4.8
Market Cap	Rs m	16,287	17,024
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VERANDA LEARNING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY24, from 1.3x 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 0.0x during FY24, from -7.4x 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 -21.5% during FY24, from -27.6% 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 -0.5% during FY24, from -15.5% 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 0.2% during FY24, from -7.7% 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	1.3	0.3
Debtors’ Days	Days	125	393
Interest coverage	x	-7.4	0.0
Debt to equity ratio	x	0.8	0.4
Return on assets	%	-7.7	0.2
Return on equity	%	-27.6	-21.5
Return on capital employed	%	-15.5	-0.5

To see how VERANDA LEARNING has performed over the last 5 years, please visit here.

VERANDA LEARNING Share Price Performance

Over the last one year, VERANDA LEARNING share price has moved up from Rs 187.8 to Rs 274.1, registering a gain of Rs 86.3 or around 45.9%.

Overall, the S&P BSE SENSEX is up 25.6% over the year.

(To know more, check out historical annual results for VERANDA LEARNING and quarterly results for VERANDA LEARNING)