VA TECH WABAG 2023-24 Annual Report Analysis

Mon, 29 Jul

VA TECH WABAG 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.

VA TECH WABAG Income Statement Analysis

• Operating income during the year fell 3.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 868.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.8% in FY24 as against 1.3% in FY23.
• Depreciation charges decreased by 4.5% and finance costs increased by 8.1% YoY, respectively.
• Other income declined by 19.2% YoY.
• Net profit for the year grew by 2176.4% YoY.
• Net profit margins during the year grew from 0.4% in FY23 to 8.8% in FY24.

VA TECH WABAG Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	29,605	28,564	-3.5%
Other income	Rs m	537	434	-19.2%
Total Revenues	Rs m	30,142	28,998	-3.8%
Gross profit	Rs m	378	3,662	868.8%
Depreciation	Rs m	88	84	-4.5%
Interest	Rs m	658	711	8.1%
Profit before tax	Rs m	169	3,301	1,853.3%
Tax	Rs m	59	797	1,250.8%
Profit after tax	Rs m	110	2,504	2,176.4%
Gross profit margin	%	1.3	12.8
Effective tax rate	%	34.9	24.1
Net profit margin	%	0.4	8.8

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VA TECH WABAG Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 22 billion as compared to Rs 23 billion in FY23, thereby witnessing an decrease of -6.3%.
• Long-term debt stood at Rs 2 billion as compared to Rs 550 million during FY23, a growth of 242.9%.
• Current assets rose 18% and stood at Rs 36 billion, while fixed assets fell 8% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 45 billion as against Rs 41 billion during FY23, thereby witnessing a growth of 12%.

VA TECH WABAG Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,749	18,186	15.5
Current Liabilities	Rs m	23,002	21,550	-6.3
Long-term Debt	Rs m	550	1,886	242.9
Total Liabilities	Rs m	40,521	45,295	11.8
Current assets	Rs m	30,704	36,253	18.1
Fixed Assets	Rs m	9,804	9,042	-7.8
Total Assets	Rs m	40,521	45,295	11.8

VA TECH WABAG Cash Flow Statement Analysis

• VA TECH WABAG's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 57.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 841 million, an improvement of 432.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 436 million, an improvement of 118% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs -1 billion net cash flows seen during FY23.

VA TECH WABAG 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	849	1,335	57.2%
Cash Flow from Investing Activities	Rs m	158	841	432.3%
Cash Flow from Financing Activities	Rs m	-2,400	436	-
Net Cash Flow	Rs m	-1,144	2,593	-

Current Valuations for VA TECH WABAG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.3, an improvement from the EPS of Rs 1.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,348.3, stands at 32.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 13.9 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	476.0	459.3
TTM Earnings per share	Rs	1.8	40.3
Diluted earnings per share	Rs	1.8	40.3
Price to Cash Flow	x	110.6	13.9
TTM P/E ratio	x	1,216.7	32.3
Price / Book Value ratio	x	1.2	2.0
Market Cap	Rs m	18,499	36,063
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VA TECH WABAG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.3x 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 5.6x during FY24, from 1.3x 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 improved and stood at 13.8% during FY24, from 0.7% 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 improved and stood at 20.0% during FY24, from 5.1% 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 7.1% during FY24, from 1.9% 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	1.3	1.7
Debtors’ Days	Days	188	254
Interest coverage	x	1.3	5.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	1.9	7.1
Return on equity	%	0.7	13.8
Return on capital employed	%	5.1	20.0

To see how VA TECH WABAG has performed over the last 5 years, please visit here.

VA TECH WABAG Share Price Performance

Over the last one year, VA TECH WABAG share price has moved up from Rs 524.3 to Rs 1,348.3, registering a gain of Rs 824.0 or around 157.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,519.1 (up 1.5%). Over the last one year it has moved up from 43,473.8 to 74,519.1, a gain of 31,045 points (up 71.4%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for VA TECH WABAG and quarterly results for VA TECH WABAG)