VADILAL INDUSTRIES 2022-23 Annual Report Analysis

Fri, 1 Sep

VADILAL 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.

VADILAL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 51.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY23 as against 14.2% in FY22.
• Depreciation charges increased by 24.6% and finance costs decreased by 18.2% YoY, respectively.
• Other income grew by 103.4% YoY.
• Net profit for the year grew by 115.4% YoY.
• Net profit margins during the year grew from 6.4% in FY22 to 9.1% in FY23.

VADILAL INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,977	10,579	51.6%
Other income	Rs m	84	171	103.4%
Total Revenues	Rs m	7,061	10,750	52.2%
Gross profit	Rs m	988	1,592	61.2%
Depreciation	Rs m	240	299	24.6%
Interest	Rs m	194	159	-18.2%
Profit before tax	Rs m	638	1,306	104.5%
Tax	Rs m	191	343	79.1%
Profit after tax	Rs m	447	963	115.4%
Gross profit margin	%	14.2	15.0
Effective tax rate	%	30.0	26.2
Net profit margin	%	6.4	9.1

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VADILAL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 26.4%.
• Long-term debt down at Rs 597 million as compared to Rs 773 million during FY22, a fall of 22.8%.
• Current assets rose 32% and stood at Rs 4 billion, while fixed assets rose 37% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 34%.

VADILAL INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,973	3,973	33.6
Current Liabilities	Rs m	2,179	2,754	26.4
Long-term Debt	Rs m	773	597	-22.8
Total Liabilities	Rs m	6,233	8,379	34.4
Current assets	Rs m	3,022	3,974	31.5
Fixed Assets	Rs m	3,211	4,405	37.2
Total Assets	Rs m	6,233	8,379	34.4

VADILAL INDUSTRIES Cash Flow Statement Analysis

• VADILAL INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 395 million, an improvement of 23.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -619 million, an improvement of 210.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 90 million, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -134 million from the Rs 199 million net cash flows seen during FY22.

VADILAL 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	320	395	23.2%
Cash Flow from Investing Activities	Rs m	-199	-619	-
Cash Flow from Financing Activities	Rs m	78	90	15.0%
Net Cash Flow	Rs m	199	-134	-

Current Valuations for VADILAL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 133.9, an improvement from the EPS of Rs 62.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,682.2, stands at 16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.3 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	970.4	1,471.3
TTM Earnings per share	Rs	62.2	133.9
Diluted earnings per share	Rs	62.2	134.0
Price to Cash Flow	x	14.8	12.3
TTM P/E ratio	x	22.7	16.4
Price / Book Value ratio	x	2.8	3.9
Market Cap	Rs m	8,364	15,495
Dividends per share (Unadj.)	Rs	1.3	1.5

Ratio Analysis for VADILAL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.4x 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 9.2x 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 15.0% 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 32.0% during FY23, from 22.2% 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 13.4% during FY23, from 10.3% 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	1.4	1.4
Debtors’ Days	Days	342	267
Interest coverage	x	4.3	9.2
Debt to equity ratio	x	0.3	0.2
Return on assets	%	10.3	13.4
Return on equity	%	15.0	24.2
Return on capital employed	%	22.2	32.0

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

VADILAL INDUSTRIES Share Price Performance

Over the last one year, VADILAL INDUSTRIES share price has moved up from Rs 2,461.7 to Rs 2,682.2, registering a gain of Rs 220.5 or around 9.0%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

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