VINSYS IT SERVICES 2022-23 Annual Report Analysis

Tue, 27 Feb

VINSYS IT SERVICES 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.

VINSYS IT SERVICES Income Statement Analysis

• Operating income during the year rose 197.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 979.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY23 as against 5.6% in FY22.
• Depreciation charges increased by 128.8% and finance costs increased by 46.4% YoY, respectively.
• Other income grew by 718.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.6% in FY22 to 15.8% in FY23.

VINSYS IT SERVICES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	318	949	197.8%
Other income	Rs m	2	15	718.3%
Total Revenues	Rs m	320	963	200.8%
Gross profit	Rs m	18	192	979.9%
Depreciation	Rs m	4	10	128.8%
Interest	Rs m	15	22	46.4%
Profit before tax	Rs m	0	174	248,957.1%
Tax	Rs m	5	24	362.7%
Profit after tax	Rs m	-5	150	NA
Gross profit margin	%	5.6	20.2
Effective tax rate	%	7,471.4	13.9
Net profit margin	%	-1.6	15.8

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VINSYS IT SERVICES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 311 million as compared to Rs 199 million in FY22, thereby witnessing an increase of 56.2%.
• Long-term debt stood at Rs 162 million as compared to Rs 72 million during FY22, a growth of 126.5%.
• Current assets rose 190% and stood at Rs 455 million, while fixed assets rose 44% and stood at Rs 269 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 725 million as against Rs 344 million during FY22, thereby witnessing a growth of 110%.

VINSYS IT SERVICES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	72	247	245.3
Current Liabilities	Rs m	199	311	56.2
Long-term Debt	Rs m	72	162	126.5
Total Liabilities	Rs m	344	725	110.4
Current assets	Rs m	157	455	190.4
Fixed Assets	Rs m	188	269	43.5
Total Assets	Rs m	344	725	110.4

VINSYS IT SERVICES Cash Flow Statement Analysis

• VINSYS IT SERVICES's cash flow from operating activities (CFO) during FY23 stood at Rs 105 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -40 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 8 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 73 million from the Rs -1 million net cash flows seen during FY22.

VINSYS IT SERVICES 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	-5	105	-
Cash Flow from Investing Activities	Rs m	-47	-40	-
Cash Flow from Financing Activities	Rs m	51	8	-83.4%
Net Cash Flow	Rs m	-1	73	-

Current Valuations for VINSYS IT SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.0, an improvement from the EPS of Rs -5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 0.0, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 0.0 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	318.5	94.9
TTM Earnings per share	Rs	-5.2	15.0
Diluted earnings per share	Rs	-0.4	10.2
Price to Cash Flow	x	0.0	0.0
TTM P/E ratio	x	0.0	0.0
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	0
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VINSYS IT SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 0.8x 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 8.8x during FY23, from 1.0x 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 60.7% during FY23, from -7.2% 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 48.0% during FY23, from 10.7% 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 23.8% during FY23, from 2.9% 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	0.8	1.5
Debtors’ Days	Days	1,194	900
Interest coverage	x	1.0	8.8
Debt to equity ratio	x	1.0	0.7
Return on assets	%	2.9	23.8
Return on equity	%	-7.2	60.7
Return on capital employed	%	10.7	48.0

To see how VINSYS IT SERVICES has performed over the last 5 years, please visit here.

VINSYS IT SERVICES Share Price Performance

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(To know more, check out historical annual results for VINSYS IT SERVICES and quarterly results for VINSYS IT SERVICES)