VANTAGE KNOWLEDGE 2023-24 Annual Report Analysis

Fri, 29 Nov

VANTAGE KNOWLEDGE 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.

VANTAGE KNOWLEDGE Income Statement Analysis

• Operating income during the year rose 111.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 35.2% in FY24 as against 65.4% in FY23.
• Depreciation charges decreased by 9.1% increased by 0.0% YoY, respectively.
• Other income grew by 409.9% YoY.
• Net profit for the year grew by 37.7% YoY.
• Net profit margins during the year declined from 49.4% in FY23 to 32.2% in FY24.

VANTAGE KNOWLEDGE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20	43	111.6%
Other income	Rs m	1	4	409.9%
Total Revenues	Rs m	21	47	123.0%
Gross profit	Rs m	13	15	14.0%
Depreciation	Rs m	0	0	-9.1%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	14	19	37.0%
Tax	Rs m	4	5	35.4%
Profit after tax	Rs m	10	14	37.7%
Gross profit margin	%	65.4	35.2
Effective tax rate	%	28.2	27.8
Net profit margin	%	49.4	32.2

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VANTAGE KNOWLEDGE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 12 million as compared to Rs 13 million in FY23, thereby witnessing an decrease of -9.8%.
• Current assets rose 186% and stood at Rs 144 million, while fixed assets rose 22% and stood at Rs 11 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 154 million as against Rs 59 million during FY23, thereby witnessing a growth of 161%.

VANTAGE KNOWLEDGE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	45	143	220.6
Current Liabilities	Rs m	13	12	-9.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	59	154	161.4
Current assets	Rs m	50	144	185.5
Fixed Assets	Rs m	9	11	22.4
Total Assets	Rs m	59	154	161.4

VANTAGE KNOWLEDGE Cash Flow Statement Analysis

• VANTAGE KNOWLEDGE's cash flow from operating activities (CFO) during FY24 stood at Rs -999 million, an improvement of 18,507.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 0 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 10,475% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 51 million from the Rs 1 million net cash flows seen during FY23.

VANTAGE KNOWLEDGE 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	-5	-999	-
Cash Flow from Investing Activities	Rs m	-4	0	-
Cash Flow from Financing Activities	Rs m	10	1,050	10,475.2%
Net Cash Flow	Rs m	1	51	6,033.7%

Current Valuations for VANTAGE KNOWLEDGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 225.1, stands at 1,260.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 179.6 times, while the price to sales ratio stands at 54.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.7 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	6.1	4.2
TTM Earnings per share	Rs	3.0	1.3
Diluted earnings per share	Rs	0.1	0.1
Price to Cash Flow	x	57.6	16.7
TTM P/E ratio	x	66.3	1,260.3
Price / Book Value ratio	x	2.4	1.6
Market Cap	Rs m	108	233
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VANTAGE KNOWLEDGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 12.3x during FY24, from 3.9x 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 962.0x during FY24, from 0.0x 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 9.7% during FY24, from 22.7% 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 13.5% during FY24, from 31.5% 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 9.0% during FY24, from 17.1% 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	3.9	12.3
Debtors’ Days	Days	6,360	1,993
Interest coverage	x	0.0	962.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.1	9.0
Return on equity	%	22.7	9.7
Return on capital employed	%	31.5	13.5

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

VANTAGE KNOWLEDGE Share Price Performance

Over the last one year, VANTAGE KNOWLEDGE share price has moved up from Rs 11.9 to Rs 225.1, registering a gain of Rs 213.2 or around 1793.2%.

Overall, the S&P BSE SENSEX is up 19.4% over the year.

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