VARDHMAN SPECIAL 2023-24 Annual Report Analysis

Thu, 24 Oct

VARDHMAN SPECIAL 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 SPECIAL Income Statement Analysis

• Operating income during the year fell 4.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.6% in FY24 as against 8.1% in FY23.
• Depreciation charges increased by 10.2% and finance costs increased by 4.3% YoY, respectively.
• Other income declined by 23.1% YoY.
• Net profit for the year declined by 8.8% YoY.
• Net profit margins during the year declined from 5.8% in FY23 to 5.5% in FY24.

VARDHMAN SPECIAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,350	16,614	-4.2%
Other income	Rs m	389	299	-23.1%
Total Revenues	Rs m	17,739	16,913	-4.7%
Gross profit	Rs m	1,412	1,423	0.8%
Depreciation	Rs m	281	310	10.2%
Interest	Rs m	177	184	4.3%
Profit before tax	Rs m	1,343	1,229	-8.5%
Tax	Rs m	339	312	-7.8%
Profit after tax	Rs m	1,004	916	-8.8%
Gross profit margin	%	8.1	8.6
Effective tax rate	%	25.2	25.4
Net profit margin	%	5.8	5.5

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VARDHMAN SPECIAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -11.4%.
• Long-term debt down at Rs 141 million as compared to Rs 440 million during FY23, a fall of 68.0%.
• Current assets fell 5% and stood at Rs 7 billion, while fixed assets rose 17% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 4%.

VARDHMAN SPECIAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,410	7,176	12.0
Current Liabilities	Rs m	3,550	3,146	-11.4
Long-term Debt	Rs m	440	141	-68.0
Total Liabilities	Rs m	11,228	11,638	3.7
Current assets	Rs m	7,327	6,987	-4.6
Fixed Assets	Rs m	3,900	4,581	17.5
Total Assets	Rs m	11,228	11,638	3.7

VARDHMAN SPECIAL Cash Flow Statement Analysis

• VARDHMAN SPECIAL's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 93.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -501 million, an improvement of 238.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -942 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -19 million from the Rs 93 million net cash flows seen during FY23.

VARDHMAN SPECIAL 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	736	1,424	93.5%
Cash Flow from Investing Activities	Rs m	-148	-501	-
Cash Flow from Financing Activities	Rs m	-495	-942	-
Net Cash Flow	Rs m	93	-19	-

Current Valuations for VARDHMAN SPECIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.2, an decline from the EPS of Rs 24.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 268.8, stands at 22.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 20.0 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	427.0	203.9
TTM Earnings per share	Rs	24.7	11.2
Diluted earnings per share	Rs	12.3	11.2
Price to Cash Flow	x	12.6	20.0
TTM P/E ratio	x	16.1	22.1
Price / Book Value ratio	x	1.9	3.4
Market Cap	Rs m	12,350	24,479
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for VARDHMAN SPECIAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 2.1x 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 7.7x during FY24, from 8.6x 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 12.8% during FY24, from 15.7% 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 19.3% during FY24, from 22.2% 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 9.5% during FY24, from 10.5% 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	2.1	2.2
Debtors’ Days	Days	550	576
Interest coverage	x	8.6	7.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	10.5	9.5
Return on equity	%	15.7	12.8
Return on capital employed	%	22.2	19.3

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

VARDHMAN SPECIAL Share Price Performance

Over the last one year, VARDHMAN SPECIAL share price has moved up from Rs 205.8 to Rs 268.8, registering a gain of Rs 63.0 or around 30.6%.

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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