VASCON ENGINEERS 2022-23 Annual Report Analysis

Fri, 31 Mar

VASCON ENGINEERS 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.

VASCON ENGINEERS Income Statement Analysis

• Operating income during the year rose 55.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 416.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.5% in FY23 as against 3.5% in FY22.
• Depreciation charges increased by 10.6% and finance costs decreased by 46.1% YoY, respectively.
• Other income declined by 79.2% YoY.
• Net profit for the year grew by 176.8% YoY.
• Net profit margins during the year grew from 5.5% in FY22 to 9.8% in FY23.

VASCON ENGINEERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,569	10,194	55.2%
Other income	Rs m	532	110	-79.2%
Total Revenues	Rs m	7,101	10,304	45.1%
Gross profit	Rs m	227	1,175	416.8%
Depreciation	Rs m	108	119	10.6%
Interest	Rs m	248	134	-46.1%
Profit before tax	Rs m	404	1,033	155.9%
Tax	Rs m	44	39	-12.8%
Profit after tax	Rs m	359	994	176.8%
Gross profit margin	%	3.5	11.5
Effective tax rate	%	11.0	3.8
Net profit margin	%	5.5	9.8

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VASCON ENGINEERS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 2.6%.
• Long-term debt stood at Rs 637 million as compared to Rs 171 million during FY22, a growth of 271.8%.
• Current assets rose 8% and stood at Rs 13 billion, while fixed assets rose 21% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 11%.

VASCON ENGINEERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,028	9,012	12.3
Current Liabilities	Rs m	6,308	6,475	2.6
Long-term Debt	Rs m	171	637	271.8
Total Liabilities	Rs m	14,834	16,429	10.8
Current assets	Rs m	11,769	12,695	7.9
Fixed Assets	Rs m	3,066	3,695	20.5
Total Assets	Rs m	14,834	16,429	10.8

VASCON ENGINEERS Cash Flow Statement Analysis

• VASCON ENGINEERS's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 211.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -320 million, an improvement of 152.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -441 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 275 million from the Rs -15 million net cash flows seen during FY22.

VASCON ENGINEERS 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	333	1,037	211.5%
Cash Flow from Investing Activities	Rs m	-127	-320	-
Cash Flow from Financing Activities	Rs m	-221	-441	-
Net Cash Flow	Rs m	-15	275	-

Current Valuations for VASCON ENGINEERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.6, an improvement from the EPS of Rs 1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.8, stands at 6.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.9 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	30.2	46.9
TTM Earnings per share	Rs	1.7	4.6
Diluted earnings per share	Rs	1.6	4.5
Price to Cash Flow	x	11.2	5.9
TTM P/E ratio	x	16.2	6.9
Price / Book Value ratio	x	0.7	0.7
Market Cap	Rs m	5,645	6,585
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VASCON ENGINEERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 1.9x 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 8.7x during FY23, from 2.6x 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 11.0% during FY23, from 4.5% 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 12.1% during FY23, from 7.9% 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 6.9% during FY23, from 4.1% 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	1.9	2.0
Debtors’ Days	Days	903	780
Interest coverage	x	2.6	8.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	4.1	6.9
Return on equity	%	4.5	11.0
Return on capital employed	%	7.9	12.1

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

VASCON ENGINEERS Share Price Performance

Over the last one year, VASCON ENGINEERS share price has moved up from Rs 23.6 to Rs 24.8, registering a gain of Rs 1.2 or around 5.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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