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VIKAS ECOTECH 2022-23 Annual Report Analysis

Tue, 17 Oct

VIKAS ECOTECH 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.

VIKAS ECOTECH Income Statement Analysis

• Operating income during the year rose 60.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.4% in FY23 as against 9.1% in FY22.
• Depreciation charges increased by 10.0% and finance costs decreased by 44.2% YoY, respectively.
• Other income grew by 57.5% YoY.
• Net profit for the year grew by 584.4% YoY.
• Net profit margins during the year grew from 0.6% in FY22 to 2.4% in FY23.

VIKAS ECOTECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,504	4,027	60.8%
Other income	Rs m	20	32	57.5%
Total Revenues	Rs m	2,524	4,058	60.8%
Gross profit	Rs m	228	219	-3.7%
Depreciation	Rs m	36	40	10.0%
Interest	Rs m	191	106	-44.2%
Profit before tax	Rs m	21	105	400.7%
Tax	Rs m	7	10	37.2%
Profit after tax	Rs m	14	95	584.4%
Gross profit margin	%	9.1	5.4
Effective tax rate	%	33.5	9.2
Net profit margin	%	0.6	2.4

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VIKAS ECOTECH Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -7.6%.
• Current assets fell 17% and stood at Rs 2 billion, while fixed assets rose 69% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 1%.

VIKAS ECOTECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,266	2,379	5.0
Current Liabilities	Rs m	1,130	1,044	-7.6
Long-term Debt	Rs m	31	0	-100.0
Total Liabilities	Rs m	3,438	3,420	-0.5
Current assets	Rs m	2,768	2,290	-17.3
Fixed Assets	Rs m	669	1,130	68.8
Total Assets	Rs m	3,438	3,420	-0.5

VIKAS ECOTECH Cash Flow Statement Analysis

• VIKAS ECOTECH's cash flow from operating activities (CFO) during FY23 stood at Rs 966 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -581 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -411 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -26 million from the Rs 25 million net cash flows seen during FY22.

VIKAS ECOTECH 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	-178	966	-
Cash Flow from Investing Activities	Rs m	3	-581	-
Cash Flow from Financing Activities	Rs m	200	-411	-
Net Cash Flow	Rs m	25	-26	-

Current Valuations for VIKAS ECOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.7, stands at 50.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 29.4 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	2.7	4.2
TTM Earnings per share	Rs	0.0	0.1
Diluted earnings per share	Rs	0.0	0.1
Price to Cash Flow	x	137.4	29.4
TTM P/E ratio	x	501.0	50.1
Price / Book Value ratio	x	1.8	1.7
Market Cap	Rs m	4,006	3,965
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VIKAS ECOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY23, from 2.4x 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 2.0x during FY23, from 1.1x 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 improved and stood at 4.0% during FY23, from 0.6% 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 8.9% during FY23, from 9.2% 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 declined and down at 5.9% during FY23, from 6.0% 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	2.4	2.2
Debtors’ Days	Days	1,899	1,278
Interest coverage	x	1.1	2.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	5.9
Return on equity	%	0.6	4.0
Return on capital employed	%	9.2	8.9

To see how VIKAS ECOTECH has performed over the last 5 years, please visit here.

VIKAS ECOTECH Share Price Performance

Over the last one year, VIKAS ECOTECH share price has moved up from Rs 3.5 to Rs 3.7, registering a gain of Rs 0.2 or around 6.6%.

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

(To know more, check out historical annual results for VIKAS ECOTECH and quarterly results for VIKAS ECOTECH)