VAKRANGEE 2022-23 Annual Report Analysis

Tue, 15 Aug

VAKRANGEE 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.

VAKRANGEE Income Statement Analysis

• Operating income during the year rose 1.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.8% in FY23 as against 7.5% in FY22.
• Depreciation charges increased by 0.4% increased by 0.0% YoY, respectively.
• Other income declined by 57.4% YoY.
• Net profit for the year grew by 25025.0% YoY.
• Net profit margins during the year grew from 0.0% in FY22 to 0.5% in FY23.

VAKRANGEE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,938	1,973	1.8%
Other income	Rs m	54	23	-57.4%
Total Revenues	Rs m	1,992	1,996	0.2%
Gross profit	Rs m	146	174	19.0%
Depreciation	Rs m	155	155	0.4%
Interest	Rs m	0	15	0.0%
Profit before tax	Rs m	46	27	-41.8%
Tax	Rs m	46	17	-63.6%
Profit after tax	Rs m	0	10	25,025.0%
Gross profit margin	%	7.5	8.8
Effective tax rate	%	99.9	62.5
Net profit margin	%	0.0	0.5

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

VAKRANGEE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -29.2%.
• Long-term debt stood at Rs 124 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets fell 17% and stood at Rs 1 billion, while fixed assets fell 3% 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 fall of 11%.

VAKRANGEE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,258	1,212	-3.7
Current Liabilities	Rs m	2,003	1,417	-29.2
Long-term Debt	Rs m	0	124	0.0
Total Liabilities	Rs m	3,334	2,981	-10.6
Current assets	Rs m	1,802	1,491	-17.2
Fixed Assets	Rs m	1,532	1,490	-2.8
Total Assets	Rs m	3,334	2,981	-10.6

VAKRANGEE Cash Flow Statement Analysis

• VAKRANGEE's cash flow from operating activities (CFO) during FY23 stood at Rs -416 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -52 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 252 million, an improvement of 49% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -216 million from the Rs 393 million net cash flows seen during FY22.

VAKRANGEE 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	215	-416	-
Cash Flow from Investing Activities	Rs m	9	-52	-
Cash Flow from Financing Activities	Rs m	169	252	49.1%
Net Cash Flow	Rs m	393	-216	-

Current Valuations for VAKRANGEE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16.4, stands at 274.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.4 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 193.5 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	1.8	1.9
TTM Earnings per share	Rs	0.0	0.0
Diluted earnings per share	Rs	0.0	0.0
Price to Cash Flow	x	238.2	193.5
TTM P/E ratio	x	45.1	274.5
Price / Book Value ratio	x	40.3	26.4
Market Cap	Rs m	50,697	31,971
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for VAKRANGEE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 0.9x 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 2.8x during FY23, from 0.0x 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 0.8% during FY23, from 0.0% 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 3.1% during FY23, from 3.7% 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 0.8% during FY23, from 0.0% 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	0.9	1.1
Debtors’ Days	Days	794	741
Interest coverage	x	0.0	2.8
Debt to equity ratio	x	0.0	0.1
Return on assets	%	0.0	0.8
Return on equity	%	0.0	0.8
Return on capital employed	%	3.7	3.1

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

VAKRANGEE Share Price Performance

Over the last one year, VAKRANGEE share price has moved down from Rs 28.0 to Rs 16.4, registering a loss of Rs 11.5 or around 41.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 31,218.6 (up 0.6%). Over the last one year it has moved up from 30,350.8 to 31,218.6, a gain of 868 points (up 2.9%).

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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