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VISAKA INDUSTRIES 2022-23 Annual Report Analysis

Tue, 20 Jun

VISAKA 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.

VISAKA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 16.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.0% in FY23 as against 14.1% in FY22.
• Depreciation charges increased by 33.5% and finance costs increased by 93.2% YoY, respectively.
• Other income grew by 23.3% YoY.
• Net profit for the year declined by 54.7% YoY.
• Net profit margins during the year declined from 8.4% in FY22 to 3.2% in FY23.

VISAKA INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,158	16,534	16.8%
Other income	Rs m	107	132	23.3%
Total Revenues	Rs m	14,265	16,666	16.8%
Gross profit	Rs m	1,991	1,330	-33.2%
Depreciation	Rs m	376	502	33.5%
Interest	Rs m	116	223	93.2%
Profit before tax	Rs m	1,606	736	-54.2%
Tax	Rs m	423	200	-52.7%
Profit after tax	Rs m	1,183	536	-54.7%
Gross profit margin	%	14.1	8.0
Effective tax rate	%	26.3	27.2
Net profit margin	%	8.4	3.2

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VISAKA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 24.3%.
• Long-term debt stood at Rs 2 billion as compared to Rs 490 million during FY22, a growth of 233.7%.
• Current assets rose 11% and stood at Rs 7 billion, while fixed assets rose 31% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 21%.

VISAKA INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,321	7,715	5.4
Current Liabilities	Rs m	3,570	4,439	24.3
Long-term Debt	Rs m	490	1,636	233.7
Total Liabilities	Rs m	11,511	13,924	21.0
Current assets	Rs m	5,921	6,589	11.3
Fixed Assets	Rs m	5,590	7,335	31.2
Total Assets	Rs m	11,511	13,924	21.0

VISAKA INDUSTRIES Cash Flow Statement Analysis

• VISAKA INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 293 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 24.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 523% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 41 million from the Rs -868 million net cash flows seen during FY22.

VISAKA 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	542	293	-46.0%
Cash Flow from Investing Activities	Rs m	-1,710	-2,122	-
Cash Flow from Financing Activities	Rs m	300	1,870	523.4%
Net Cash Flow	Rs m	-868	41	-

Current Valuations for VISAKA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.0, an decline from the EPS of Rs 68.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 92.6, stands at 14.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 1.6 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	819.3	956.8
TTM Earnings per share	Rs	68.5	31.0
Diluted earnings per share	Rs	13.7	6.2
Price to Cash Flow	x	6.5	1.6
TTM P/E ratio	x	8.6	14.9
Price / Book Value ratio	x	1.6	0.2
Market Cap	Rs m	11,514	1,708
Dividends per share (Unadj.)	Rs	3.0	2.0

Ratio Analysis for VISAKA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.7x 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 4.3x during FY23, from 14.9x 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 declined and down at 6.9% during FY23, from 16.2% 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 declined and down at 10.3% during FY23, from 22.0% 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 5.5% during FY23, from 11.3% 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	1.7	1.5
Debtors’ Days	Days	344	302
Interest coverage	x	14.9	4.3
Debt to equity ratio	x	0.1	0.2
Return on assets	%	11.3	5.5
Return on equity	%	16.2	6.9
Return on capital employed	%	22.0	10.3

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

VISAKA INDUSTRIES Share Price Performance

Over the last one year, VISAKA INDUSTRIES share price has moved up from Rs 89.9 to Rs 92.6, registering a gain of Rs 2.7 or around 3.0%.

Overall, the S&P BSE SENSEX is up 22.5% over the year.

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