VISAKA INDUSTRIES 2023-24 Annual Report Analysis

Tue, 25 Jun

VISAKA INDUSTRIES 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.

VISAKA INDUSTRIES Income Statement Analysis

• Operating income during the year fell 8.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.8% in FY24 as against 8.0% in FY23.
• Depreciation charges increased by 15.4% and finance costs increased by 62.7% YoY, respectively.
• Other income declined by 16.8% YoY.
• Net profit for the year declined by 95.3% YoY.
• Net profit margins during the year declined from 3.2% in FY23 to 0.2% in FY24.

VISAKA INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,534	15,205	-8.0%
Other income	Rs m	132	109	-16.8%
Total Revenues	Rs m	16,666	15,315	-8.1%
Gross profit	Rs m	1,330	878	-33.9%
Depreciation	Rs m	502	580	15.4%
Interest	Rs m	223	363	62.7%
Profit before tax	Rs m	736	45	-93.9%
Tax	Rs m	200	20	-90.2%
Profit after tax	Rs m	536	25	-95.3%
Gross profit margin	%	8.0	5.8
Effective tax rate	%	27.2	43.6
Net profit margin	%	3.2	0.2

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

VISAKA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 16.2%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY23, a growth of 26.5%.
• Current assets rose 4% and stood at Rs 7 billion, while fixed assets rose 10% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 7%.

VISAKA INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,715	7,557	-2.1
Current Liabilities	Rs m	4,439	5,157	16.2
Long-term Debt	Rs m	1,636	2,069	26.5
Total Liabilities	Rs m	13,924	14,931	7.2
Current assets	Rs m	6,589	6,855	4.0
Fixed Assets	Rs m	7,335	8,077	10.1
Total Assets	Rs m	13,924	14,931	7.2

VISAKA INDUSTRIES Cash Flow Statement Analysis

• VISAKA INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 49 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -906 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 926 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 69 million from the Rs 41 million net cash flows seen during FY23.

VISAKA INDUSTRIES 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	293	49	-83.2%
Cash Flow from Investing Activities	Rs m	-2,122	-906	-
Cash Flow from Financing Activities	Rs m	1,870	926	-50.5%
Net Cash Flow	Rs m	41	69	68.5%

Current Valuations for VISAKA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 31.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 121.6, stands at 1,225.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 17.6 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	956.8	176.0
TTM Earnings per share	Rs	31.0	0.3
Diluted earnings per share	Rs	6.2	0.3
Price to Cash Flow	x	5.7	17.6
TTM P/E ratio	x	11.0	1,225.5
Price / Book Value ratio	x	0.2	1.4
Market Cap	Rs m	1,708	10,671
Dividends per share (Unadj.)	Rs	2.0	0.5

Ratio Analysis for VISAKA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.5x 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 1.1x during FY24, from 4.3x 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 0.3% during FY24, from 6.9% 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 4.2% during FY24, from 10.3% 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 declined and down at 2.6% during FY24, from 5.5% 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	1.5	1.3
Debtors’ Days	Days	302	333
Interest coverage	x	4.3	1.1
Debt to equity ratio	x	0.2	0.3
Return on assets	%	5.5	2.6
Return on equity	%	6.9	0.3
Return on capital employed	%	10.3	4.2

To see how VISAKA INDUSTRIES has performed over the last 5 years, please visit here.

VISAKA INDUSTRIES Share Price Performance

Over the last one year, VISAKA INDUSTRIES share price has moved up from Rs 91.9 to Rs 121.6, registering a gain of Rs 29.7 or around 32.3%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for VISAKA INDUSTRIES and quarterly results for VISAKA INDUSTRIES)