VLS FINANCE 2020-21 Annual Report Analysis

Wed, 31 Mar

VLS FINANCE has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

VLS FINANCE Income Statement Analysis

• Operating income during the year rose 72.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2418.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.6% in FY21 as against 0.3% in FY20.
• Depreciation charges decreased by 33.3% increased by 0.0% YoY, respectively.
• Other income declined by 77.7% YoY.
• Net profit for the year grew by 464.0% YoY.
• Net profit margins during the year grew from 1.2% in FY20 to 3.8% in FY21.

VLS FINANCE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	33,702	58,122	72.5%
Other income	Rs m	54	12	-77.7%
Total Revenues	Rs m	33,755	58,134	72.2%
Gross profit	Rs m	-89	2,075	-2,418.7%
Depreciation	Rs m	12	8	-33.3%
Interest	Rs m	1	1	0.0%
Profit before tax	Rs m	-48	2,078	-4,406.4%
Tax	Rs m	-441	-135	-69.3%
Profit after tax	Rs m	393	2,214	464.0%
Gross profit margin	%	-0.3	3.6
Effective tax rate	%	913.3	-6.5
Net profit margin	%	1.2	3.8

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VLS FINANCE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 33 million as compared to Rs 54 million in FY20, thereby witnessing an decrease of -39.9%.
• Current assets rose 296% and stood at Rs 2 billion, while fixed assets rose 33% and stood at Rs 29 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 31 billion as against Rs 22 billion during FY20, thereby witnessing a growth of 40%.

VLS FINANCE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	17,517	24,314	38.8
Current Liabilities	Rs m	54	33	-39.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	21,971	30,773	40.1
Current assets	Rs m	572	2,266	296.4
Fixed Assets	Rs m	21,399	28,507	33.2
Total Assets	Rs m	21,971	30,773	40.1

VLS FINANCE Cash Flow Statement Analysis

• VLS FINANCE's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -724 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -57 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 877 million from the Rs 42 million net cash flows seen during FY20.

VLS FINANCE Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	-1,037	1,658	-
Cash Flow from Investing Activities	Rs m	1,126	-724	-
Cash Flow from Financing Activities	Rs m	-47	-57	-
Net Cash Flow	Rs m	42	877	1,965.9%

Current Valuations for VLS FINANCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 57.3, an improvement from the EPS of Rs 10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 81.9, stands at 1.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.1 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 1.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	871.7	1,503.4
TTM Earnings per share	Rs	10.2	57.3
Diluted earnings per share	Rs	10.2	57.3
Price to Cash Flow	x	3.1	1.1
TTM P/E ratio	x	3.2	1.4
Price / Book Value ratio	x	0.1	0.1
Market Cap	Rs m	1,765	2,499
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for VLS FINANCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 69.7x during FY21, from 10.6x during FY20. 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 3,149.9x during FY21, from -72.1x during FY20. 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 9.1% during FY21, from 2.2% during FY21. 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 8.6% during FY21, from -0.3% during FY20. 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 7.2% during FY21, from 1.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	10.6	69.7
Debtors’ Days	Days	3	1
Interest coverage	x	-72.1	3,149.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.8	7.2
Return on equity	%	2.2	9.1
Return on capital employed	%	-0.3	8.6

To see how VLS FINANCE has performed over the last 5 years, please visit here.

VLS FINANCE Share Price Performance

Over the last one year, VLS FINANCE share price has moved up from Rs 32.2 to Rs 81.9, registering a gain of Rs 49.8 or around 154.7%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for VLS FINANCE and quarterly results for VLS FINANCE)

Read: Latest Annual Report Analysis of VLS FINANCE