VENKYS 2023-24 Annual Report Analysis

Mon, 19 Aug

VENKYS 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.

VENKYS Income Statement Analysis

• Operating income during the year fell 11.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.3% in FY24 as against 2.6% in FY23.
• Depreciation charges decreased by 1.3% and finance costs decreased by 1.6% YoY, respectively.
• Other income grew by 4.2% YoY.
• Net profit for the year grew by 12.2% YoY.
• Net profit margins during the year grew from 1.7% in FY23 to 2.1% in FY24.

VENKYS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	42,337	37,381	-11.7%
Other income	Rs m	377	392	4.2%
Total Revenues	Rs m	42,714	37,774	-11.6%
Gross profit	Rs m	1,116	1,234	10.6%
Depreciation	Rs m	355	350	-1.3%
Interest	Rs m	185	182	-1.6%
Profit before tax	Rs m	953	1,094	14.8%
Tax	Rs m	248	304	22.3%
Profit after tax	Rs m	705	791	12.2%
Gross profit margin	%	2.6	3.3
Effective tax rate	%	26.0	27.7
Net profit margin	%	1.7	2.1

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

VENKYS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 0.2%.
• Current assets fell 2% and stood at Rs 13 billion, while fixed assets rose 16% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 20 billion during FY23, thereby witnessing a growth of 4%.

VENKYS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,986	13,702	5.5
Current Liabilities	Rs m	6,646	6,659	0.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,149	20,938	3.9
Current assets	Rs m	13,421	13,134	-2.1
Fixed Assets	Rs m	6,727	7,804	16.0
Total Assets	Rs m	20,149	20,938	3.9

VENKYS Cash Flow Statement Analysis

• VENKYS's cash flow from operating activities (CFO) during FY24 stood at Rs 820 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -366 million, an improvement of 37.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -469 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -15 million from the Rs 145 million net cash flows seen during FY23.

VENKYS 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	861	820	-4.8%
Cash Flow from Investing Activities	Rs m	-266	-366	-
Cash Flow from Financing Activities	Rs m	-450	-469	-
Net Cash Flow	Rs m	145	-15	-

Current Valuations for VENKYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.1, an improvement from the EPS of Rs 50.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,315.8, stands at 24.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 23.2 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	3,004.7	2,653.0
TTM Earnings per share	Rs	50.0	56.1
Diluted earnings per share	Rs	50.0	56.1
Price to Cash Flow	x	19.2	23.2
TTM P/E ratio	x	28.8	24.2
Price / Book Value ratio	x	2.1	1.9
Market Cap	Rs m	27,156	26,505
Dividends per share (Unadj.)	Rs	6.0	7.0

Ratio Analysis for VENKYS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY24, from 2.0x 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 6.2x 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 5.8% during FY24, from 5.4% 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 9.3% during FY24, from 8.8% 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 4.6% during FY24, from 4.4% 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	2.0	2.0
Debtors’ Days	Days	566	698
Interest coverage	x	6.2	7.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.4	4.6
Return on equity	%	5.4	5.8
Return on capital employed	%	8.8	9.3

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

VENKYS Share Price Performance

Over the last one year, VENKYS share price has moved up from Rs 1,857.5 to Rs 2,315.8, registering a gain of Rs 458.3 or around 24.7%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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