VIKAS ECOTECH 2023-24 Annual Report Analysis

Fri, 18 Oct

VIKAS ECOTECH 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.

VIKAS ECOTECH Income Statement Analysis

• Operating income during the year fell 38.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.8% in FY24 as against 5.4% in FY23.
• Depreciation charges decreased by 5.3% and finance costs decreased by 34.5% YoY, respectively.
• Other income declined by 2.3% YoY.
• Net profit for the year declined by 30.6% YoY.
• Net profit margins during the year grew from 2.4% in FY23 to 2.7% in FY24.

VIKAS ECOTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,027	2,466	-38.8%
Other income	Rs m	32	31	-2.3%
Total Revenues	Rs m	4,058	2,497	-38.5%
Gross profit	Rs m	219	167	-23.7%
Depreciation	Rs m	40	38	-5.3%
Interest	Rs m	107	70	-34.5%
Profit before tax	Rs m	105	91	-13.2%
Tax	Rs m	10	25	158.8%
Profit after tax	Rs m	95	66	-30.6%
Gross profit margin	%	5.4	6.8
Effective tax rate	%	9.2	27.4
Net profit margin	%	2.4	2.7

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VIKAS ECOTECH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 537 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -49.2%.
• Current assets fell 49% and stood at Rs 1 billion, while fixed assets rose 177% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 25%.

VIKAS ECOTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,379	3,762	58.1
Current Liabilities	Rs m	1,057	537	-49.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,433	4,295	25.1
Current assets	Rs m	2,304	1,165	-49.4
Fixed Assets	Rs m	1,130	3,130	177.0
Total Assets	Rs m	3,433	4,295	25.1

VIKAS ECOTECH Cash Flow Statement Analysis

• VIKAS ECOTECH's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 30.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 248.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 823 million, an improvement of 302% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -10 million from the Rs -74 million net cash flows seen during FY23.

VIKAS ECOTECH 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	916	1,195	30.5%
Cash Flow from Investing Activities	Rs m	-581	-2,027	-
Cash Flow from Financing Activities	Rs m	-408	823	-
Net Cash Flow	Rs m	-74	-10	-

Current Valuations for VIKAS ECOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.5, stands at 39.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 54.4 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	4.2	1.8
TTM Earnings per share	Rs	0.1	0.0
Diluted earnings per share	Rs	0.1	0.0
Price to Cash Flow	x	32.8	54.4
TTM P/E ratio	x	46.4	39.3
Price / Book Value ratio	x	1.7	1.5
Market Cap	Rs m	3,965	5,644
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VIKAS ECOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY24, from 2.2x 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 improved and stood at 2.3x during FY24, from 2.0x 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 declined and down at 1.8% during FY24, from 4.0% 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 4.3% during FY24, from 8.9% 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 3.2% during FY24, from 5.9% 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	2.2	2.2
Debtors’ Days	Days	1,278	1,024
Interest coverage	x	2.0	2.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.9	3.2
Return on equity	%	4.0	1.8
Return on capital employed	%	8.9	4.3

To see how VIKAS ECOTECH has performed over the last 5 years, please visit here.

VIKAS ECOTECH Share Price Performance

Over the last one year, VIKAS ECOTECH share price has moved down from Rs 3.7 to Rs 3.5, registering a loss of Rs 0.3 or around 6.7%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

(To know more, check out historical annual results for VIKAS ECOTECH and quarterly results for VIKAS ECOTECH)