VIMTA LABS 2022-23 Annual Report Analysis

Sat, 3 Jun

VIMTA LABS 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.

VIMTA LABS Income Statement Analysis

• Operating income during the year rose 14.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.8% in FY23 as against 28.4% in FY22.
• Depreciation charges increased by 31.7% and finance costs increased by 76.6% YoY, respectively.
• Other income grew by 137.7% YoY.
• Net profit for the year grew by 16.6% YoY.
• Net profit margins during the year grew from 14.9% in FY22 to 15.1% in FY23.

VIMTA LABS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,783	3,182	14.3%
Other income	Rs m	14	34	137.7%
Total Revenues	Rs m	2,797	3,216	15.0%
Gross profit	Rs m	791	949	20.0%
Depreciation	Rs m	233	307	31.7%
Interest	Rs m	15	26	76.6%
Profit before tax	Rs m	557	650	16.7%
Tax	Rs m	144	168	17.2%
Profit after tax	Rs m	413	482	16.6%
Gross profit margin	%	28.4	29.8
Effective tax rate	%	25.8	25.9
Net profit margin	%	14.9	15.1

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

VIMTA LABS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 573 million as compared to Rs 477 million in FY22, thereby witnessing an increase of 20.0%.
• Long-term debt down at Rs 99 million as compared to Rs 127 million during FY22, a fall of 21.9%.
• Current assets rose 32% and stood at Rs 2 billion, while fixed assets rose 8% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 17%.

VIMTA LABS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,311	2,754	19.2
Current Liabilities	Rs m	477	573	20.0
Long-term Debt	Rs m	127	99	-21.9
Total Liabilities	Rs m	3,051	3,580	17.3
Current assets	Rs m	1,244	1,637	31.6
Fixed Assets	Rs m	1,808	1,944	7.5
Total Assets	Rs m	3,051	3,580	17.3

VIMTA LABS Cash Flow Statement Analysis

• VIMTA LABS's cash flow from operating activities (CFO) during FY23 stood at Rs 879 million, an improvement of 48.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -573 million, an improvement of 51.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -110 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 197 million from the Rs 46 million net cash flows seen during FY22.

VIMTA LABS 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	591	879	48.9%
Cash Flow from Investing Activities	Rs m	-378	-573	-
Cash Flow from Financing Activities	Rs m	-166	-110	-
Net Cash Flow	Rs m	46	197	327.6%

Current Valuations for VIMTA LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.8, an improvement from the EPS of Rs 18.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 411.3, stands at 18.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 11.6 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	125.9	143.8
TTM Earnings per share	Rs	18.7	21.8
Diluted earnings per share	Rs	18.7	21.8
Price to Cash Flow	x	10.8	11.6
TTM P/E ratio	x	16.9	18.9
Price / Book Value ratio	x	2.9	3.3
Market Cap	Rs m	6,727	9,171
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for VIMTA LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY23, from 2.6x 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 deteriorated and stood at 25.6x during FY23, from 38.2x 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 declined and down at 17.5% during FY23, from 17.9% 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 23.7% during FY23, from 23.5% 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 14.2% during FY23, from 14.0% 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	2.6	2.9
Debtors’ Days	Days	101	92
Interest coverage	x	38.2	25.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	14.0	14.2
Return on equity	%	17.9	17.5
Return on capital employed	%	23.5	23.7

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

VIMTA LABS Share Price Performance

Over the last one year, VIMTA LABS share price has moved up from Rs 341.3 to Rs 411.3, registering a gain of Rs 70.0 or around 20.5%.

Overall, the S&P BSE SENSEX is up 12.9% over the year.

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