VARDHMAN ACRYLICS 2023-24 Annual Report Analysis

Wed, 9 Oct

VARDHMAN ACRYLICS 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.

VARDHMAN ACRYLICS Income Statement Analysis

• Operating income during the year fell 30.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 63.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.5% in FY24 as against 8.5% in FY23.
• Depreciation charges increased by 2.6% and finance costs decreased by 0.3% YoY, respectively.
• Other income grew by 9.6% YoY.
• Net profit for the year declined by 46.6% YoY.
• Net profit margins during the year declined from 7.7% in FY23 to 5.9% in FY24.

VARDHMAN ACRYLICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,267	2,975	-30.3%
Other income	Rs m	128	140	9.6%
Total Revenues	Rs m	4,395	3,115	-29.1%
Gross profit	Rs m	361	132	-63.3%
Depreciation	Rs m	55	56	2.6%
Interest	Rs m	3	3	-0.3%
Profit before tax	Rs m	431	214	-50.5%
Tax	Rs m	102	38	-62.7%
Profit after tax	Rs m	329	175	-46.6%
Gross profit margin	%	8.5	4.5
Effective tax rate	%	23.8	17.9
Net profit margin	%	7.7	5.9

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

VARDHMAN ACRYLICS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -2.6%.
• Current assets fell 4% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a fall of 2%.

VARDHMAN ACRYLICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,454	2,430	-1.0
Current Liabilities	Rs m	2,617	2,550	-2.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,147	5,053	-1.8
Current assets	Rs m	3,714	3,582	-3.5
Fixed Assets	Rs m	1,433	1,471	2.7
Total Assets	Rs m	5,147	5,053	-1.8

VARDHMAN ACRYLICS Cash Flow Statement Analysis

• VARDHMAN ACRYLICS 's cash flow from operating activities (CFO) during FY24 stood at Rs 76 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 120 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -195 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 million from the Rs -8 million net cash flows seen during FY23.

VARDHMAN ACRYLICS 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	385	76	-80.3%
Cash Flow from Investing Activities	Rs m	-367	120	-
Cash Flow from Financing Activities	Rs m	-26	-195	-
Net Cash Flow	Rs m	-8	1	-

Current Valuations for VARDHMAN ACRYLICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an decline from the EPS of Rs 4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 58.7, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.6 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	53.1	37.0
TTM Earnings per share	Rs	4.1	2.2
Diluted earnings per share	Rs	4.1	2.2
Price to Cash Flow	x	0.0	20.6
TTM P/E ratio	x	0.0	22.0
Price / Book Value ratio	x	1.9	2.0
Market Cap	Rs m	4,551	4,780
Dividends per share (Unadj.)	Rs	2.5	2.0

Ratio Analysis for VARDHMAN ACRYLICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x 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 deteriorated and stood at 75.4x during FY24, from 150.6x 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 7.2% during FY24, from 13.4% 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 8.9% during FY24, from 17.7% 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 3.5% during FY24, from 6.4% 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	1.4
Debtors’ Days	Days	115	199
Interest coverage	x	150.6	75.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.4	3.5
Return on equity	%	13.4	7.2
Return on capital employed	%	17.7	8.9

To see how VARDHMAN ACRYLICS has performed over the last 5 years, please visit here.

VARDHMAN ACRYLICS Share Price Performance

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

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

(To know more, check out historical annual results for VARDHMAN ACRYLICS and quarterly results for VARDHMAN ACRYLICS )