VENUS PIPES & TUBES 2022-23 Annual Report Analysis

Tue, 17 Oct

VENUS PIPES & TUBES 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.

VENUS PIPES & TUBES Income Statement Analysis

• Operating income during the year rose 42.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.5% in FY23 as against 12.7% in FY22.
• Depreciation charges increased by 38.3% and finance costs increased by 39.5% YoY, respectively.
• Other income grew by 12.8% YoY.
• Net profit for the year grew by 39.6% YoY.
• Net profit margins during the year declined from 8.2% in FY22 to 8.0% in FY23.

VENUS PIPES & TUBES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,870	5,524	42.8%
Other income	Rs m	21	24	12.8%
Total Revenues	Rs m	3,891	5,548	42.6%
Gross profit	Rs m	492	691	40.3%
Depreciation	Rs m	14	20	38.3%
Interest	Rs m	71	98	39.5%
Profit before tax	Rs m	429	597	39.2%
Tax	Rs m	112	155	38.1%
Profit after tax	Rs m	317	442	39.6%
Gross profit margin	%	12.7	12.5
Effective tax rate	%	26.1	25.9
Net profit margin	%	8.2	8.0

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VENUS PIPES & TUBES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 59.0%.
• Long-term debt stood at Rs 247 million as compared to Rs 143 million during FY22, a growth of 73.2%.
• Current assets rose 52% and stood at Rs 3 billion, while fixed assets rose 504% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 107%.

VENUS PIPES & TUBES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,285	3,222	150.7
Current Liabilities	Rs m	1,050	1,670	59.0
Long-term Debt	Rs m	143	247	73.2
Total Liabilities	Rs m	2,491	5,160	107.1
Current assets	Rs m	2,187	3,325	52.0
Fixed Assets	Rs m	304	1,835	503.7
Total Assets	Rs m	2,491	5,160	107.1

VENUS PIPES & TUBES Cash Flow Statement Analysis

• VENUS PIPES & TUBES's cash flow from operating activities (CFO) during FY23 stood at Rs 99 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 633.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 103% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 108 million from the Rs -1 million net cash flows seen during FY22.

VENUS PIPES & TUBES 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	-600	99	-
Cash Flow from Investing Activities	Rs m	-228	-1,675	-
Cash Flow from Financing Activities	Rs m	828	1,684	103.4%
Net Cash Flow	Rs m	-1	108	-

Current Valuations for VENUS PIPES & TUBES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.8, an improvement from the EPS of Rs 20.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,335.0, stands at 51.6 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 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 24.0 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	254.2	272.1
TTM Earnings per share	Rs	20.8	21.8
Diluted earnings per share	Rs	15.6	21.8
Price to Cash Flow	x	0.0	24.0
TTM P/E ratio	x	0.0	51.6
Price / Book Value ratio	x	0.0	3.4
Market Cap	Rs m	0	11,075
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for VENUS PIPES & TUBES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.1x 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 deteriorated and stood at 7.1x during FY23, from 7.1x 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 declined and down at 13.7% during FY23, from 24.6% 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 declined and down at 20.0% during FY23, from 35.0% 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 declined and down at 10.5% during FY23, from 15.5% 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	2.1	2.0
Debtors’ Days	Days	69	47
Interest coverage	x	7.1	7.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	15.5	10.5
Return on equity	%	24.6	13.7
Return on capital employed	%	35.0	20.0

To see how VENUS PIPES & TUBES has performed over the last 5 years, please visit here.

VENUS PIPES & TUBES Share Price Performance

Over the last one year, VENUS PIPES & TUBES share price has moved up from Rs 666.1 to Rs 1,335.0, registering a gain of Rs 668.9 or around 100.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 23,655.6 (up 0.6%). Over the last one year it has moved up from 18,476.0 to 23,655.6, a gain of 5,180 points (up 28.0%).

Overall, the S&P BSE SENSEX is up 16.1% over the year.

(To know more, check out historical annual results for VENUS PIPES & TUBES and quarterly results for VENUS PIPES & TUBES)