VARDHMAN POL 2023-24 Annual Report Analysis

Tue, 24 Sep

VARDHMAN POL 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 POL Income Statement Analysis

• Operating income during the year fell 39.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 12.7% in FY24 as against 9.9% in FY23.
• Depreciation charges decreased by 14.1% and finance costs decreased by 93.7% YoY, respectively.
• Other income grew by 452.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.2% in FY23 to 7.2% in FY24.

VARDHMAN POL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,155	3,706	-39.8%
Other income	Rs m	62	341	452.3%
Total Revenues	Rs m	6,217	4,047	-34.9%
Gross profit	Rs m	609	-470	NA
Depreciation	Rs m	122	105	-14.1%
Interest	Rs m	534	34	-93.7%
Profit before tax	Rs m	15	-268	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	15	-268	NA
Gross profit margin	%	9.9	-12.7
Effective tax rate	%	0.0	0.0
Net profit margin	%	0.2	-7.2

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VARDHMAN POL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -60.9%.
• Long-term debt stood at Rs 451 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 7% and stood at Rs 735 million, while fixed assets fell 18% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a fall of 7%.

VARDHMAN POL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-3,623	-3,691	NA
Current Liabilities	Rs m	6,511	2,549	-60.9
Long-term Debt	Rs m	0	451	0.0
Total Liabilities	Rs m	2,413	2,254	-6.6
Current assets	Rs m	684	735	7.5
Fixed Assets	Rs m	1,729	1,419	-17.9
Total Assets	Rs m	2,413	2,254	-6.6

VARDHMAN POL Cash Flow Statement Analysis

• VARDHMAN POL's cash flow from operating activities (CFO) during FY24 stood at Rs -138 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 263 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -118 million, an improvement of 70% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 million from the Rs 3 million net cash flows seen during FY23.

VARDHMAN POL 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	403	-138	-
Cash Flow from Investing Activities	Rs m	-6	263	-
Cash Flow from Financing Activities	Rs m	-394	-118	-
Net Cash Flow	Rs m	3	7	132.4%

Current Valuations for VARDHMAN POL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -9.8, an decline from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 13.0, stands at -12.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.3 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at -0.9 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	276.1	135.8
TTM Earnings per share	Rs	0.7	-9.8
Diluted earnings per share	Rs	0.0	-0.8
Price to Cash Flow	x	6.3	-0.9
TTM P/E ratio	x	57.6	-12.0
Price / Book Value ratio	x	-0.2	0.0
Market Cap	Rs m	551	152
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VARDHMAN POL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.3x during FY24, from 0.1x 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 -7.0x during FY24, from 1.0x 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 7.2% during FY24, from -0.4% 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 improved and stood at 7.2% during FY24, from -15.2% 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 -10.4% during FY24, from 22.8% 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	0.1	0.3
Debtors’ Days	Days	1	0
Interest coverage	x	1.0	-7.0
Debt to equity ratio	x	0.0	-0.1
Return on assets	%	22.8	-10.4
Return on equity	%	-0.4	7.2
Return on capital employed	%	-15.2	7.2

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

VARDHMAN POL Share Price Performance

Over the last one year, VARDHMAN POL share price has moved up from Rs 6.3 to Rs 13.0, registering a gain of Rs 6.7 or around 107.7%.

Overall, the S&P BSE SENSEX is up 27.3% over the year.

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