VEDANT FASHIONS (MANYAVAR) 2022-23 Annual Report Analysis

Sun, 6 Aug

VEDANT FASHIONS (MANYAVAR) 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.

VEDANT FASHIONS (MANYAVAR) Income Statement Analysis

• Operating income during the year rose 30.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 49.5% in FY23 as against 47.6% in FY22.
• Depreciation charges increased by 10.0% and finance costs increased by 10.7% YoY, respectively.
• Other income declined by 19.4% YoY.
• Net profit for the year grew by 36.3% YoY.
• Net profit margins during the year grew from 30.3% in FY22 to 31.7% in FY23.

VEDANT FASHIONS (MANYAVAR) Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,408	13,549	30.2%
Other income	Rs m	499	402	-19.4%
Total Revenues	Rs m	10,908	13,952	27.9%
Gross profit	Rs m	4,959	6,708	35.3%
Depreciation	Rs m	944	1,038	10.0%
Interest	Rs m	284	315	10.7%
Profit before tax	Rs m	4,230	5,758	36.1%
Tax	Rs m	1,081	1,467	35.7%
Profit after tax	Rs m	3,149	4,291	36.3%
Gross profit margin	%	47.6	49.5
Effective tax rate	%	25.6	25.5
Net profit margin	%	30.3	31.7

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VEDANT FASHIONS (MANYAVAR) Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 34.9%.
• Current assets rose 36% and stood at Rs 17 billion, while fixed assets rose 9% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 28 billion as against Rs 23 billion during FY22, thereby witnessing a growth of 24%.

VEDANT FASHIONS (MANYAVAR) Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,784	13,922	29.1
Current Liabilities	Rs m	5,643	7,614	34.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	22,868	28,291	23.7
Current assets	Rs m	12,537	17,025	35.8
Fixed Assets	Rs m	10,317	11,267	9.2
Total Assets	Rs m	22,868	28,291	23.7

VEDANT FASHIONS (MANYAVAR) Cash Flow Statement Analysis

• VEDANT FASHIONS (MANYAVAR)'s cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 33.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 44% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 61 million from the Rs -30 million net cash flows seen during FY22.

VEDANT FASHIONS (MANYAVAR) 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	3,510	4,698	33.8%
Cash Flow from Investing Activities	Rs m	565	-2,319	-
Cash Flow from Financing Activities	Rs m	-4,105	-2,318	-
Net Cash Flow	Rs m	-30	61	-

Current Valuations for VEDANT FASHIONS (MANYAVAR)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.7, an improvement from the EPS of Rs 13.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,270.2, stands at 73.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 22.2 times, while the price to sales ratio stands at 22.8 times.
• The company's price to cash flow (P/CF) ratio stood at 54.8 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	42.9	55.8
TTM Earnings per share	Rs	13.0	17.7
Diluted earnings per share	Rs	13.0	17.7
Price to Cash Flow	x	57.3	54.8
TTM P/E ratio	x	74.4	73.4
Price / Book Value ratio	x	20.5	21.0
Market Cap	Rs m	220,635	292,064
Dividends per share (Unadj.)	Rs	5.0	9.0

Ratio Analysis for VEDANT FASHIONS (MANYAVAR)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 2.2x 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 improved and stood at 19.3x during FY23, from 15.9x 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 improved and stood at 30.8% during FY23, from 29.2% 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 improved and stood at 43.6% during FY23, from 41.9% 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 improved and stood at 16.3% during FY23, from 15.0% 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	2.2	2.2
Debtors’ Days	Days	139	128
Interest coverage	x	15.9	19.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.0	16.3
Return on equity	%	29.2	30.8
Return on capital employed	%	41.9	43.6

To see how VEDANT FASHIONS (MANYAVAR) has performed over the last 5 years, please visit here.

VEDANT FASHIONS (MANYAVAR) Share Price Performance

Over the last one year, VEDANT FASHIONS (MANYAVAR) share price has moved up from Rs 1,211.3 to Rs 1,270.2, registering a gain of Rs 59.0 or around 4.9%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

(To know more, check out historical annual results for VEDANT FASHIONS (MANYAVAR) and quarterly results for VEDANT FASHIONS (MANYAVAR))