VERITAS 2023-24 Annual Report Analysis

Tue, 8 Oct

VERITAS 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.

VERITAS Income Statement Analysis

• Operating income during the year rose 78.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.3% in FY24 as against 6.6% in FY23.
• Depreciation charges increased by 23.6% and finance costs increased by 80.2% YoY, respectively.
• Other income grew by 1072.1% YoY.
• Net profit for the year grew by 97.1% YoY.
• Net profit margins during the year grew from 4.4% in FY23 to 4.8% in FY24.

VERITAS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	21,632	38,545	78.2%
Other income	Rs m	49	578	1,072.1%
Total Revenues	Rs m	21,682	39,124	80.4%
Gross profit	Rs m	1,423	2,037	43.2%
Depreciation	Rs m	344	425	23.6%
Interest	Rs m	173	311	80.2%
Profit before tax	Rs m	955	1,879	96.7%
Tax	Rs m	7	10	45.9%
Profit after tax	Rs m	948	1,869	97.1%
Gross profit margin	%	6.6	5.3
Effective tax rate	%	0.7	0.6
Net profit margin	%	4.4	4.8

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

VERITAS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 11 billion in FY23, thereby witnessing an decrease of -63.0%.
• Current assets rose 1% and stood at Rs 17 billion, while fixed assets rose 2% and stood at Rs 24 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 42 billion as against Rs 41 billion during FY23, thereby witnessing a growth of 2%.

VERITAS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,037	25,101	9.0
Current Liabilities	Rs m	11,062	4,092	-63.0
Long-term Debt	Rs m	363	0	-100.0
Total Liabilities	Rs m	41,207	41,828	1.5
Current assets	Rs m	17,149	17,376	1.3
Fixed Assets	Rs m	24,058	24,452	1.6
Total Assets	Rs m	41,207	41,828	1.5

VERITAS Cash Flow Statement Analysis

• VERITAS's cash flow from operating activities (CFO) during FY24 stood at Rs 558 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -318 million, an improvement of 842.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -130 million, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 110 million from the Rs 13 million net cash flows seen during FY23.

VERITAS 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	806	558	-30.8%
Cash Flow from Investing Activities	Rs m	-34	-318	-
Cash Flow from Financing Activities	Rs m	-759	-130	-
Net Cash Flow	Rs m	13	110	721.1%

Current Valuations for VERITAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 69.7, an improvement from the EPS of Rs 35.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,121.1, stands at 14.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 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	806.9	1,437.7
TTM Earnings per share	Rs	35.4	69.7
Diluted earnings per share	Rs	35.4	69.7
Price to Cash Flow	x	2.9	7.0
TTM P/E ratio	x	4.0	14.3
Price / Book Value ratio	x	0.2	0.6
Market Cap	Rs m	5,197	16,129
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for VERITAS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY24, from 1.6x 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 7.0x during FY24, from 6.5x 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 7.4% during FY24, from 4.1% 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 8.7% during FY24, from 4.8% 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 5.2% during FY24, from 2.7% 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	1.6	4.2
Debtors’ Days	Days	2,783	1,571
Interest coverage	x	6.5	7.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.7	5.2
Return on equity	%	4.1	7.4
Return on capital employed	%	4.8	8.7

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

VERITAS Share Price Performance

Over the last one year, VERITAS share price has moved up from Rs 232.4 to Rs 1,121.1, registering a gain of Rs 888.7 or around 382.4%.

Overall, the S&P BSE SENSEX is up 25.2% over the year.

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