VAKRANGEE LTD. 2017-18 Annual Report Analysis

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VAKRANGEE LTD. 2017-18 Annual Report Analysis
Wed, 19 Dec

VAKRANGEE LTD. has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

VAKRANGEE LTD. Income Statement Analysis

  • Operating income during the year rose 62.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.4% in FY18 as against 23.6% in FY17.
  • Depreciation charges decreased by 94.3% and finance costs decreased by 79.4% YoY, respectively.
  • Other income grew by 553.2% YoY.
  • Net profit for the year grew by 28.2% YoY.
  • Net profit margins during the year declined from 13.3% in FY17 to 10.4% in FY18.

VAKRANGEE LTD. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 40,005 65,020 62.5%
Other income Rs m 53 345 553.2%
Total Revenues Rs m 40,057 65,365 63.2%
Gross profit Rs m 9,460 10,039 6.1%
Depreciation Rs m 734 42 -94.3%
Interest Rs m 501 103 -79.4%
Profit before tax Rs m 8,278 10,239 23.7%
Tax Rs m 2,970 3,434 15.6%
Profit after tax Rs m 5,308 6,805 28.2%
Gross profit margin % 23.6 15.4
Effective tax rate % 35.9 33.5
Net profit margin % 13.3 10.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VAKRANGEE LTD. Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 86.1%.
  • Current assets rose 28% and stood at Rs 28 billion, while fixed assets rose 223% and stood at Rs 930 million in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 30 billion as against Rs 23 billion during FY17, thereby witnessing a growth of 32%.

VAKRANGEE LTD. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 20,538 25,924 26.2
 
Current Liabilities Rs m 2,110 3,927 86.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 22,684 29,926 31.9
 
Current assets Rs m 22,278 28,430 27.6
Fixed Assets Rs m 287 930 223.5
Total Assets Rs m 22,684 29,926 31.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VAKRANGEE LTD. Cash Flow Statement Analysis

  • VAKRANGEE LTD.'s cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -989 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion, an improvement of 4% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 3 billion from the Rs 6 billion net cash flows seen during FY17.

VAKRANGEE LTD. Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 6,688 5,299 -20.8%
Cash Flow from Investing Activities Rs m 537 -989 -
Cash Flow from Financing Activities Rs m -1,419 -1,365 -
Net Cash Flow Rs m 5,806 2,945 -49.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VAKRANGEE LTD.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.4, an decline from the EPS of Rs 10.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 35.5, stands at 11.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 18.9 times, while the price to sales ratio stands at 7.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 75.6 61.4
TTM Earnings per share Rs 10.0 6.4
Diluted earnings per share Rs 5.0 6.4
Price to Cash Flow x 3.1 5.5
TTM P/E ratio x 5.6 11.1
Price / Book Value ratio x 6.4 18.9
Market Cap Rs m 18,760 37,535
Dividends per share (Unadj.) Rs 2.0 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VAKRANGEE LTD.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 7.2x during FY18, from 10.6x during FY17. 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 100.3x during FY18, from 17.5x during FY17. 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 26.2% during FY18, from 25.8% during FY18. 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 39.9% during FY18, from 42.7% during FY17. 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 23.1% during FY18, from 25.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 10.6 7.2
Debtors’ Days Days 75 73
Interest coverage x 17.5 100.3
Debt to equity ratio x 0.0 0.0
Return on assets % 25.6 23.1
Return on equity % 25.8 26.2
Return on capital employed % 42.7 39.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

VAKRANGEE LTD. Share Price Performance

Over the last one year, VAKRANGEE LTD. share price has moved up from Rs 380.8 to Rs 35.5, registering a loss of Rs 345.3 or around 90.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 14,272.3 (down 1.3%). Over the last one year it has moved up from 10,855.8 to 14,272.3, a gain of 3,417 points (up 31.5%).

Overall, the S&P BSE SENSEX is up 8.6% over the year.

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

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VAKRANGEE Announces Quarterly Results (1QFY20); Net Profit Down 40.5% (Quarterly Result Update)

Aug 16, 2019 | Updated on Aug 16, 2019

For the quarter ended June 2019, VAKRANGEE has posted a net profit of Rs 78 m (down 40.5% YoY). Sales on the other hand came in at Rs 1 bn (down 87.5% YoY). Read on for a complete analysis of VAKRANGEE's quarterly results.

VAKRANGEE Announces Quarterly Results (4QFY19); Net Profit Down 91.5% (Quarterly Result Update)

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For the quarter ended March 2019, VAKRANGEE has posted a net profit of Rs 65 m (down 91.5% YoY). Sales on the other hand came in at Rs 1 bn (down 94.5% YoY). Read on for a complete analysis of VAKRANGEE's quarterly results.

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