VIP INDUSTRIES 2018-19 Annual Report Analysis

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VIP INDUSTRIES 2018-19 Annual Report Analysis
Thu, 18 Jul

VIP INDUSTRIES has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

VIP INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 26.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.6% in FY19 as against 13.7% in FY18.
  • Depreciation charges increased by 29.3% and finance costs increased by 396.7% YoY, respectively.
  • Other income declined by 10.6% YoY.
  • Net profit for the year grew by 14.6% YoY.
  • Net profit margins during the year declined from 8.9% in FY18 to 8.1% in FY19.

VIP INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 14,096 17,847 26.6%
Other income Rs m 93 83 -10.6%
Total Revenues Rs m 14,189 17,930 26.4%
Gross profit Rs m 1,934 2,247 16.2%
Depreciation Rs m 129 166 29.3%
Interest Rs m 3 15 396.7%
Profit before tax Rs m 1,895 2,149 13.4%
Tax Rs m 628 697 11.0%
Profit after tax Rs m 1,268 1,453 14.6%
Gross profit margin % 13.7 12.6
Effective tax rate % 33.1 32.4
Net profit margin % 8.9 8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VIP INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 74.7%.
  • Current assets rose 38% and stood at Rs 9 billion, while fixed assets rose 53% and stood at Rs 1 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 11 billion as against Rs 8 billion during FY18, thereby witnessing a growth of 39%.

VIP INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 4,891 5,814 18.9
 
Current Liabilities Rs m 2,720 4,753 74.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 7,727 10,711 38.6
 
Current assets Rs m 6,593 9,073 37.6
Fixed Assets Rs m 802 1,225 52.7
Total Assets Rs m 7,727 10,711 38.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VIP INDUSTRIES Cash Flow Statement Analysis

  • VIP INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs -559 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 159 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 306 million, an improvement of 170% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -94 million from the Rs 126 million net cash flows seen during FY18.

VIP INDUSTRIES Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 852 -559 -
Cash Flow from Investing Activities Rs m -287 159 -
Cash Flow from Financing Activities Rs m -440 306 -
Net Cash Flow Rs m 126 -94 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VIP INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.3, an improvement from the EPS of Rs 9.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 410.0, stands at 39.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 3.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 35.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 99.7 126.3
TTM Earnings per share Rs 9.0 10.3
Diluted earnings per share Rs 9.0 10.3
Price to Cash Flow x 41.5 35.8
TTM P/E ratio x 39.9 39.9
Price / Book Value ratio x 8.2 11.7
Market Cap Rs m 57,941 57,941
Dividends per share (Unadj.) Rs 3.0 3.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VIP INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY19, from 2.4x during FY18. 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 145.3x during FY19, from 632.8x during FY18. 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 25.0% during FY19, from 25.9% during FY19. 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 37.2% during FY19, from 38.8% during FY18. 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 13.7% during FY19, from 16.4% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.4 1.9
Debtors’ Days Days 46 61
Interest coverage x 632.8 145.3
Debt to equity ratio x 0.0 0.0
Return on assets % 16.4 13.7
Return on equity % 25.9 25.0
Return on capital employed % 38.8 37.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

VIP INDUSTRIES Share Price Performance

Over the last one year, VIP INDUSTRIES share price has moved down from Rs 412.5 to Rs 410.0, registering a loss of Rs 2.5 or around 0.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 23,112.1 (down 0.6%). Over the last one year it has moved up from 19,644.9 to 23,112.1, a gain of 3,467 points (up 17.6%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

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For the quarter ended December 2019, VIP INDUSTRIES has posted a net profit of Rs 342 m (up 43.6% YoY). Sales on the other hand came in at Rs 4 bn (up 0.5% YoY). Read on for a complete analysis of VIP INDUSTRIES's quarterly results.

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