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VINATI ORGANICS 2022-23 Annual Report Analysis

Wed, 23 Aug

VINATI ORGANICS 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.

VINATI ORGANICS Income Statement Analysis

• Operating income during the year rose 28.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.8% in FY23 as against 27.0% in FY22.
• Depreciation charges increased by 14.2% and finance costs increased by 2.8% YoY, respectively.
• Other income grew by 18.9% YoY.
• Net profit for the year grew by 32.1% YoY.
• Net profit margins during the year grew from 21.5% in FY22 to 22.1% in FY23.

VINATI ORGANICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	16,155	20,717	28.2%
Other income	Rs m	609	724	18.9%
Total Revenues	Rs m	16,764	21,441	27.9%
Gross profit	Rs m	4,355	5,965	37.0%
Depreciation	Rs m	455	519	14.2%
Interest	Rs m	17	17	2.8%
Profit before tax	Rs m	4,492	6,153	37.0%
Tax	Rs m	1,026	1,573	53.3%
Profit after tax	Rs m	3,466	4,580	32.1%
Gross profit margin	%	27.0	28.8
Effective tax rate	%	22.8	25.6
Net profit margin	%	21.5	22.1

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VINATI ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 31.5%.
• Current assets rose 28% and stood at Rs 10 billion, while fixed assets rose 18% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 22%.

VINATI ORGANICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,280	22,183	21.3
Current Liabilities	Rs m	1,673	2,199	31.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,898	25,471	21.9
Current assets	Rs m	7,760	9,939	28.1
Fixed Assets	Rs m	13,138	15,532	18.2
Total Assets	Rs m	20,898	25,471	21.9

VINATI ORGANICS Cash Flow Statement Analysis

• VINATI ORGANICS's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 355.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 43.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -860 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs -2 billion net cash flows seen during FY22.

VINATI ORGANICS 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	1,268	5,775	355.5%
Cash Flow from Investing Activities	Rs m	-2,554	-3,674	-
Cash Flow from Financing Activities	Rs m	-465	-860	-
Net Cash Flow	Rs m	-1,751	1,241	-

Current Valuations for VINATI ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.6, an improvement from the EPS of Rs 33.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,809.3, stands at 42.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 9.0 times.
• The company's price to cash flow (P/CF) ratio stood at 41.0 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	157.2	201.6
TTM Earnings per share	Rs	33.7	44.6
Diluted earnings per share	Rs	33.7	44.6
Price to Cash Flow	x	51.2	41.0
TTM P/E ratio	x	57.9	42.3
Price / Book Value ratio	x	10.0	9.4
Market Cap	Rs m	182,818	208,956
Dividends per share (Unadj.)	Rs	6.5	7.0

Ratio Analysis for VINATI ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.5x during FY23, from 4.6x 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 363.1x during FY23, from 272.9x 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 20.6% during FY23, from 19.0% 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 27.8% during FY23, from 24.7% 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 18.0% during FY23, from 16.7% 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	4.6	4.5
Debtors’ Days	Days	1,036	827
Interest coverage	x	272.9	363.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.7	18.0
Return on equity	%	19.0	20.6
Return on capital employed	%	24.7	27.8

To see how VINATI ORGANICS has performed over the last 5 years, please visit here.

VINATI ORGANICS Share Price Performance

Over the last one year, VINATI ORGANICS share price has moved down from Rs 2,180.0 to Rs 1,809.3, registering a loss of Rs 370.7 or around 17.0%.

Overall, the S&P BSE SENSEX is up 11.1% over the year.

(To know more, check out historical annual results for VINATI ORGANICS and quarterly results for VINATI ORGANICS)