VIP INDUSTRIES 2022-23 Annual Report Analysis

Mon, 17 Jul

VIP INDUSTRIES 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.

VIP INDUSTRIES Income Statement Analysis

• Operating income during the year rose 61.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 94.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY23 as against 11.3% in FY22.
• Depreciation charges increased by 5.3% and finance costs increased by 19.1% YoY, respectively.
• Other income declined by 53.1% YoY.
• Net profit for the year grew by 127.6% YoY.
• Net profit margins during the year grew from 5.2% in FY22 to 7.3% in FY23.

VIP INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,895	20,823	61.5%
Other income	Rs m	364	171	-53.1%
Total Revenues	Rs m	13,259	20,994	58.3%
Gross profit	Rs m	1,461	2,845	94.7%
Depreciation	Rs m	700	737	5.3%
Interest	Rs m	264	314	19.1%
Profit before tax	Rs m	862	1,965	128.1%
Tax	Rs m	192	442	129.8%
Profit after tax	Rs m	669	1,523	127.6%
Gross profit margin	%	11.3	13.7
Effective tax rate	%	22.3	22.5
Net profit margin	%	5.2	7.3

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VIP INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 22.2%.
• Current assets rose 13% and stood at Rs 10 billion, while fixed assets rose 18% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 15%.

VIP INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,496	6,291	14.5
Current Liabilities	Rs m	5,181	6,330	22.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,021	17,264	14.9
Current assets	Rs m	9,015	10,188	13.0
Fixed Assets	Rs m	6,006	7,075	17.8
Total Assets	Rs m	15,021	17,264	14.9

VIP INDUSTRIES Cash Flow Statement Analysis

• VIP INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -845 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -746 million, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 159 million from the Rs -31 million net cash flows seen during FY22.

VIP INDUSTRIES 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	-237	1,749	-
Cash Flow from Investing Activities	Rs m	1,461	-845	-
Cash Flow from Financing Activities	Rs m	-1,255	-746	-
Net Cash Flow	Rs m	-31	159	-

Current Valuations for VIP INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 606.9, stands at 56.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.7 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 39.8 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	91.2	147.0
TTM Earnings per share	Rs	4.7	10.8
Diluted earnings per share	Rs	4.7	10.7
Price to Cash Flow	x	77.1	39.8
TTM P/E ratio	x	157.6	56.5
Price / Book Value ratio	x	13.9	14.3
Market Cap	Rs m	76,643	89,990
Dividends per share (Unadj.)	Rs	2.5	4.5

Ratio Analysis for VIP INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.7x 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 7.3x during FY23, from 4.3x 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 24.2% during FY23, from 12.2% 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 36.2% during FY23, from 20.5% 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 10.6% during FY23, from 6.2% 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	1.7	1.6
Debtors’ Days	Days	6	4
Interest coverage	x	4.3	7.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.2	10.6
Return on equity	%	12.2	24.2
Return on capital employed	%	20.5	36.2

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 633.7 to Rs 606.9, registering a loss of Rs 26.8 or around 4.2%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 42,838.6 (up 0.1%). Over the last one year it has moved up from 38,168.9 to 42,838.6, a gain of 4,670 points (up 12.2%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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