V MARC 2023-24 Annual Report Analysis

Wed, 21 Aug

V MARC 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.

V MARC Income Statement Analysis

• Operating income during the year rose 128.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 153.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY24 as against 10.5% in FY23.
• Depreciation charges increased by 253.1% and finance costs increased by 78.0% YoY, respectively.
• Other income declined by 58.6% YoY.
• Net profit for the year grew by 157.1% YoY.
• Net profit margins during the year grew from 4.2% in FY23 to 4.8% in FY24.

V MARC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,473	5,647	128.4%
Other income	Rs m	26	11	-58.6%
Total Revenues	Rs m	2,498	5,658	126.5%
Gross profit	Rs m	260	660	153.9%
Depreciation	Rs m	26	90	253.1%
Interest	Rs m	124	220	78.0%
Profit before tax	Rs m	136	360	164.4%
Tax	Rs m	32	92	188.6%
Profit after tax	Rs m	104	269	157.1%
Gross profit margin	%	10.5	11.7
Effective tax rate	%	23.3	25.5
Net profit margin	%	4.2	4.8

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V MARC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 104.0%.
• Long-term debt stood at Rs 527 million as compared to Rs 219 million during FY23, a growth of 140.3%.
• Current assets rose 90% and stood at Rs 3 billion, while fixed assets rose 72% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 85%.

V MARC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	797	1,065	33.7
Current Liabilities	Rs m	1,404	2,864	104.0
Long-term Debt	Rs m	219	527	140.3
Total Liabilities	Rs m	2,460	4,541	84.6
Current assets	Rs m	1,728	3,286	90.1
Fixed Assets	Rs m	732	1,255	71.6
Total Assets	Rs m	2,460	4,541	84.6

V MARC Cash Flow Statement Analysis

• V MARC's cash flow from operating activities (CFO) during FY24 stood at Rs 477 million, an improvement of 41.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -596 million, an improvement of 79.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 121 million, an improvement of 2,696% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs -1 million net cash flows seen during FY23.

V MARC 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	337	477	41.6%
Cash Flow from Investing Activities	Rs m	-333	-596	-
Cash Flow from Financing Activities	Rs m	-5	121	-
Net Cash Flow	Rs m	-1	2	-

Current Valuations for V MARC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.8, an improvement from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 423.9, stands at 36.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.1 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.3 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	108.5	247.8
TTM Earnings per share	Rs	4.6	11.8
Diluted earnings per share	Rs	4.6	11.8
Price to Cash Flow	x	0.0	8.3
TTM P/E ratio	x	0.0	36.0
Price / Book Value ratio	x	1.3	2.8
Market Cap	Rs m	1,042	2,964
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for V MARC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x 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 improved and stood at 2.6x during FY24, from 2.1x 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 25.2% during FY24, from 13.1% 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 36.5% during FY24, from 25.6% 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 improved and stood at 10.8% during FY24, from 9.3% 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	1.1
Debtors’ Days	Days	828	930
Interest coverage	x	2.1	2.6
Debt to equity ratio	x	0.3	0.5
Return on assets	%	9.3	10.8
Return on equity	%	13.1	25.2
Return on capital employed	%	25.6	36.5

To see how V MARC has performed over the last 5 years, please visit here.

V MARC Share Price Performance

Over the last one year, V MARC share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 0.0% over the year.

(To know more, check out historical annual results for V MARC and quarterly results for V MARC)