VTM LIMITED 2022-23 Annual Report Analysis

Tue, 20 Jun

VTM LIMITED has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

VTM LIMITED Income Statement Analysis

• Operating income during the year rose 7.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.2% in FY23 as against 11.9% in FY22.
• Depreciation charges increased by 6.6% and finance costs decreased by 21.7% YoY, respectively.
• Other income grew by 12.0% YoY.
• Net profit for the year declined by 38.6% YoY.
• Net profit margins during the year declined from 7.7% in FY22 to 4.4% in FY23.

VTM LIMITED Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,937	2,087	7.7%
Other income	Rs m	52	58	12.0%
Total Revenues	Rs m	1,989	2,145	7.8%
Gross profit	Rs m	232	172	-25.8%
Depreciation	Rs m	92	98	6.6%
Interest	Rs m	11	8	-21.7%
Profit before tax	Rs m	181	123	-31.8%
Tax	Rs m	32	32	0.4%
Profit after tax	Rs m	149	91	-38.6%
Gross profit margin	%	11.9	8.2
Effective tax rate	%	17.6	25.8
Net profit margin	%	7.7	4.4

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VTM LIMITED Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 101 million as compared to Rs 144 million in FY22, thereby witnessing an decrease of -29.8%.
• Long-term debt down at Rs 22 million as compared to Rs 43 million during FY22, a fall of 47.8%.
• Current assets fell 1% and stood at Rs 1 billion, while fixed assets rose 4% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 2%.

VTM LIMITED Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,344	2,452	4.6
Current Liabilities	Rs m	144	101	-29.8
Long-term Debt	Rs m	43	22	-47.8
Total Liabilities	Rs m	2,645	2,694	1.9
Current assets	Rs m	1,318	1,309	-0.7
Fixed Assets	Rs m	1,327	1,385	4.4
Total Assets	Rs m	2,645	2,694	1.9

VTM LIMITED Cash Flow Statement Analysis

• VTM LIMITED's cash flow from operating activities (CFO) during FY23 stood at Rs 215 million, an improvement of 202.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -129 million, an improvement of 1,102.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -69 million, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 17 million from the Rs -10 million net cash flows seen during FY22.

VTM LIMITED Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	71	215	202.9%
Cash Flow from Investing Activities	Rs m	-11	-129	-
Cash Flow from Financing Activities	Rs m	-70	-69	-
Net Cash Flow	Rs m	-10	17	-

Current Valuations for VTM LIMITED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an decline from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 53.3, stands at 23.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	48.2	51.9
TTM Earnings per share	Rs	3.7	2.3
Diluted earnings per share	Rs	3.7	2.3
Price to Cash Flow	x	7.1	11.3
TTM P/E ratio	x	11.5	23.5
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	1,657	2,134
Dividends per share (Unadj.)	Rs	0.9	0.7

Ratio Analysis for VTM LIMITED

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 13.0x during FY23, from 9.2x during FY22. 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 16.0x during FY23, from 18.2x during FY22. 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 3.7% during FY23, from 6.4% during FY23. 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 5.3% during FY23, from 8.0% during FY22. 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 3.7% during FY23, from 6.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	9.2	13.0
Debtors’ Days	Days	306	243
Interest coverage	x	18.2	16.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	3.7
Return on equity	%	6.4	3.7
Return on capital employed	%	8.0	5.3

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

VTM LIMITED Share Price Performance

Over the last one year, VTM LIMITED share price has moved up from Rs 44.6 to Rs 53.3, registering a gain of Rs 8.7 or around 19.6%.

Overall, the S&P BSE SENSEX is up 23.2% over the year.

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