VIRTUOSO OPTO 2023-24 Annual Report Analysis

Thu, 22 Aug

VIRTUOSO OPTO 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.

VIRTUOSO OPTO Income Statement Analysis

• Operating income during the year rose 57.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 53.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.7% in FY24 as against 9.9% in FY23.
• Depreciation charges increased by 94.0% and finance costs increased by 48.1% YoY, respectively.
• Other income grew by 51.3% YoY.
• Net profit for the year grew by 30.9% YoY.
• Net profit margins during the year declined from 2.3% in FY23 to 1.9% in FY24.

VIRTUOSO OPTO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,373	5,311	57.5%
Other income	Rs m	8	12	51.3%
Total Revenues	Rs m	3,381	5,323	57.4%
Gross profit	Rs m	335	515	53.9%
Depreciation	Rs m	94	183	94.0%
Interest	Rs m	135	201	48.1%
Profit before tax	Rs m	113	144	27.2%
Tax	Rs m	35	42	19.1%
Profit after tax	Rs m	78	102	30.9%
Gross profit margin	%	9.9	9.7
Effective tax rate	%	31.2	29.2
Net profit margin	%	2.3	1.9

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VIRTUOSO OPTO Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 30.1%.
• Long-term debt stood at Rs 604 million as compared to Rs 409 million during FY23, a growth of 47.6%.
• Current assets rose 79% and stood at Rs 3 billion, while fixed assets rose 42% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 65%.

VIRTUOSO OPTO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	937	1,895	102.3
Current Liabilities	Rs m	1,387	1,804	30.1
Long-term Debt	Rs m	409	604	47.6
Total Liabilities	Rs m	2,765	4,558	64.8
Current assets	Rs m	1,711	3,057	78.7
Fixed Assets	Rs m	1,054	1,501	42.4
Total Assets	Rs m	2,765	4,558	64.8

VIRTUOSO OPTO Cash Flow Statement Analysis

• VIRTUOSO OPTO's cash flow from operating activities (CFO) during FY24 stood at Rs 137 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 139.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 89% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 million from the Rs -5 million net cash flows seen during FY23.

VIRTUOSO OPTO 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	-96	137	-
Cash Flow from Investing Activities	Rs m	-627	-1,501	-
Cash Flow from Financing Activities	Rs m	718	1,361	89.4%
Net Cash Flow	Rs m	-5	-3	-

Current Valuations for VIRTUOSO OPTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 290.0, stands at 75.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 23.1 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	147.7	201.6
TTM Earnings per share	Rs	3.4	3.9
Diluted earnings per share	Rs	2.9	3.9
Price to Cash Flow	x	25.3	23.1
TTM P/E ratio	x	56.0	75.1
Price / Book Value ratio	x	3.6	3.5
Market Cap	Rs m	3,382	6,586
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VIRTUOSO OPTO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.2x 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 1.7x during FY24, from 1.8x 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 declined and down at 5.4% during FY24, from 8.3% 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 13.8% during FY24, from 18.4% 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 6.6% 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	1.2	1.7
Debtors’ Days	Days	284	146
Interest coverage	x	1.8	1.7
Debt to equity ratio	x	0.4	0.3
Return on assets	%	7.7	6.6
Return on equity	%	8.3	5.4
Return on capital employed	%	18.4	13.8

To see how VIRTUOSO OPTO has performed over the last 5 years, please visit here.

VIRTUOSO OPTO Share Price Performance

Over the last one year, VIRTUOSO OPTO share price has moved up from Rs 240.0 to Rs 290.0, registering a gain of Rs 50.0 or around 20.8%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 63,132.7 (up 0.9%). Over the last one year it has moved up from 43,884.9 to 63,132.7, a gain of 19,248 points (up 43.9%).

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for VIRTUOSO OPTO and quarterly results for VIRTUOSO OPTO)