VAIBHAV GLOBAL 2020-21 Annual Report Analysis

Wed, 31 Mar

VAIBHAV GLOBAL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

VAIBHAV GLOBAL Income Statement Analysis

• Operating income during the year rose 27.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.6% in FY21 as against 13.2% in FY20.
• Depreciation charges increased by 24.8% and finance costs decreased by 46.5% YoY, respectively.
• Other income grew by 21.8% YoY.
• Net profit for the year grew by 42.8% YoY.
• Net profit margins during the year grew from 9.6% in FY20 to 10.7% in FY21.

VAIBHAV GLOBAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	19,865	25,401	27.9%
Other income	Rs m	145	177	21.8%
Total Revenues	Rs m	20,010	25,578	27.8%
Gross profit	Rs m	2,618	3,702	41.4%
Depreciation	Rs m	314	391	24.8%
Interest	Rs m	86	46	-46.5%
Profit before tax	Rs m	2,363	3,442	45.6%
Tax	Rs m	461	724	57.1%
Profit after tax	Rs m	1,903	2,718	42.8%
Gross profit margin	%	13.2	14.6
Effective tax rate	%	19.5	21.0
Net profit margin	%	9.6	10.7

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VAIBHAV GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 31.2%.
• Current assets rose 32% and stood at Rs 12 billion, while fixed assets rose 13% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 14 billion as against Rs 11 billion during FY20, thereby witnessing a growth of 29%.

VAIBHAV GLOBAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,352	9,472	28.8
Current Liabilities	Rs m	3,108	4,078	31.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,700	13,758	28.6
Current assets	Rs m	8,863	11,686	31.8
Fixed Assets	Rs m	1,837	2,072	12.8
Total Assets	Rs m	10,700	13,758	28.6

VAIBHAV GLOBAL Cash Flow Statement Analysis

• VAIBHAV GLOBAL's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 52.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 42.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -575 million, an improvement of 69% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 15 million from the Rs -2 billion net cash flows seen during FY20.

VAIBHAV GLOBAL Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	2,135	3,258	52.6%
Cash Flow from Investing Activities	Rs m	-1,874	-2,679	-
Cash Flow from Financing Activities	Rs m	-1,844	-575	-
Net Cash Flow	Rs m	-1,554	15	-

Current Valuations for VAIBHAV GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 83.5, an improvement from the EPS of Rs 58.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,832.6, stands at 231.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 66.4 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 29.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	615.4	780.6
TTM Earnings per share	Rs	58.9	83.5
Diluted earnings per share	Rs	11.6	16.6
Price to Cash Flow	x	57.5	29.5
TTM P/E ratio	x	67.0	231.3
Price / Book Value ratio	x	3.7	9.7
Market Cap	Rs m	27,256	91,683
Dividends per share (Unadj.)	Rs	6.8	5.0

Ratio Analysis for VAIBHAV GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY21, from 2.9x during FY20. 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 75.3x during FY21, from 28.3x during FY20. 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 28.7% during FY21, from 25.9% during FY21. 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 36.8% during FY21, from 33.3% during FY20. 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 20.1% during FY21, from 18.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.9	2.9
Debtors’ Days	Days	248	240
Interest coverage	x	28.3	75.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.6	20.1
Return on equity	%	25.9	28.7
Return on capital employed	%	33.3	36.8

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

VAIBHAV GLOBAL Share Price Performance

Over the last one year, VAIBHAV GLOBAL share price has moved up from Rs 776.8 to Rs 3,832.6, registering a gain of Rs 3,055.8 or around 393.4%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of VAIBHAV GLOBAL