VST INDUSTRIES 2021-22 Annual Report Analysis

Sun, 10 Jul

VST INDUSTRIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

VST INDUSTRIES Income Statement Analysis

• Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 51.7% in FY22 as against 54.8% in FY21.
• Depreciation charges decreased by 14.2% increased by 0.0% YoY, respectively.
• Other income grew by 11.7% YoY.
• Net profit for the year grew by 3.0% YoY.
• Net profit margins during the year declined from 41.5% in FY21 to 40.2% in FY22.

VST INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,491	7,957	6.2%
Other income	Rs m	418	467	11.7%
Total Revenues	Rs m	7,909	8,423	6.5%
Gross profit	Rs m	4,106	4,116	0.3%
Depreciation	Rs m	351	301	-14.2%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	4,173	4,282	2.6%
Tax	Rs m	1,065	1,080	1.4%
Profit after tax	Rs m	3,108	3,202	3.0%
Gross profit margin	%	54.8	51.7
Effective tax rate	%	25.5	25.2
Net profit margin	%	41.5	40.2

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VST INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 5 billion as compared to Rs 5 billion in FY21, thereby witnessing an decrease of -5.7%.
• Current assets fell 9% and stood at Rs 11 billion, while fixed assets rose 104% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 16 billion as against Rs 15 billion during FY21, thereby witnessing a growth of 7%.

VST INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	9,404	10,733	14.1
Current Liabilities	Rs m	5,233	4,934	-5.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,605	15,690	7.4
Current assets	Rs m	12,507	11,420	-8.7
Fixed Assets	Rs m	2,098	4,270	103.5
Total Assets	Rs m	14,605	15,690	7.4

VST INDUSTRIES Cash Flow Statement Analysis

• VST INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -958 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -52 million from the Rs -169 million net cash flows seen during FY21.

VST INDUSTRIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,862	2,772	-3.1%
Cash Flow from Investing Activities	Rs m	-1,440	-958	-
Cash Flow from Financing Activities	Rs m	-1,591	-1,866	-
Net Cash Flow	Rs m	-169	-52	-

Current Valuations for VST INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 207.4, an improvement from the EPS of Rs 201.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,269.7, stands at 15.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	485.2	515.3
TTM Earnings per share	Rs	201.3	207.4
Diluted earnings per share	Rs	201.3	207.4
Price to Cash Flow	x	15.1	14.7
TTM P/E ratio	x	16.8	15.8
Price / Book Value ratio	x	5.5	4.8
Market Cap	Rs m	51,987	51,576
Dividends per share (Unadj.)	Rs	114.0	140.0

Ratio Analysis for VST INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY22, from 2.4x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 29.8% during FY22, from 33.0% during FY22. 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 39.9% during FY22, from 44.4% during FY21. 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 20.4% during FY22, from 21.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.4	2.3
Debtors’ Days	Days	74	153
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.3	20.4
Return on equity	%	33.0	29.8
Return on capital employed	%	44.4	39.9

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

VST INDUSTRIES Share Price Performance

Over the last one year, VST INDUSTRIES share price has moved down from Rs 3,591.2 to Rs 3,269.7, registering a loss of Rs 321.5 or around 9.0%.

Overall, the S&P BSE SENSEX is up 3.1% over the year.

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

Read: Latest Annual Report Analysis of VST INDUSTRIES