VIKAS LIFECARE 2022-23 Annual Report Analysis

Wed, 28 Feb

VIKAS LIFECARE 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.

VIKAS LIFECARE Income Statement Analysis

• Operating income during the year rose 58.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.2% in FY23 as against 0.3% in FY22.
• Depreciation charges increased by 99.0% and finance costs increased by 6.7% YoY, respectively.
• Other income declined by 91.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 9.6% in FY22 to 3.3% in FY23.

VIKAS LIFECARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,009	4,760	58.2%
Other income	Rs m	437	39	-91.1%
Total Revenues	Rs m	3,446	4,799	39.3%
Gross profit	Rs m	-9	-199	NA
Depreciation	Rs m	15	30	99.0%
Interest	Rs m	22	23	6.7%
Profit before tax	Rs m	391	-214	NA
Tax	Rs m	101	-59	NA
Profit after tax	Rs m	289	-155	NA
Gross profit margin	%	-0.3	-4.2
Effective tax rate	%	25.9	27.4
Net profit margin	%	9.6	-3.3

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

VIKAS LIFECARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 2.0%.
• Long-term debt stood at Rs 96 million as compared to Rs 23 million during FY22, a growth of 307.3%.
• Current assets rose 81% and stood at Rs 2 billion, while fixed assets rose 14% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 42%.

VIKAS LIFECARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,994	3,313	66.1
Current Liabilities	Rs m	1,053	1,073	2.0
Long-term Debt	Rs m	23	96	307.3
Total Liabilities	Rs m	3,214	4,551	41.6
Current assets	Rs m	1,188	2,155	81.5
Fixed Assets	Rs m	1,989	2,269	14.1
Total Assets	Rs m	3,214	4,551	41.6

VIKAS LIFECARE Cash Flow Statement Analysis

• VIKAS LIFECARE's cash flow from operating activities (CFO) during FY23 stood at Rs -1 billion, an improvement of 653.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -366 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 155% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 19 million from the Rs 75 million net cash flows seen during FY22.

VIKAS LIFECARE 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	-149	-1,122	-
Cash Flow from Investing Activities	Rs m	-385	-366	-
Cash Flow from Financing Activities	Rs m	591	1,506	154.8%
Net Cash Flow	Rs m	75	19	-74.6%

Current Valuations for VIKAS LIFECARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an decline from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.4, stands at -35.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at -57.9 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	2.7	3.3
TTM Earnings per share	Rs	0.3	-0.1
Diluted earnings per share	Rs	0.2	-0.1
Price to Cash Flow	x	28.3	-57.9
TTM P/E ratio	x	29.8	-35.2
Price / Book Value ratio	x	3.0	2.2
Market Cap	Rs m	5,944	7,235
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VIKAS LIFECARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 1.1x 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 -8.3x during FY23, from 19.1x 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 -4.7% during FY23, from 14.5% 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 declined and down at -5.6% during FY23, from 20.4% 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 declined and down at -2.9% during FY23, from 9.7% 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	1.1	2.0
Debtors’ Days	Days	519	1,299
Interest coverage	x	19.1	-8.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.7	-2.9
Return on equity	%	14.5	-4.7
Return on capital employed	%	20.4	-5.6

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

VIKAS LIFECARE Share Price Performance

Over the last one year, VIKAS LIFECARE share price has moved down from Rs 5.3 to Rs 3.4, registering a loss of Rs 1.9 or around 36.5%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 17,383.4 (up 1.3%). Over the last one year it has moved down from 18,741.2 to 17,383.4, a loss of 1,358 points (down 7.2%).

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

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