VST INDUSTRIES 2022-23 Annual Report Analysis

Sun, 6 Aug

VST 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.

VST INDUSTRIES Income Statement Analysis

• Operating income during the year rose 14.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 41.9% in FY23 as against 51.7% in FY22.
• Depreciation charges increased by 0.3% increased by 0.0% YoY, respectively.
• Other income grew by 63.7% YoY.
• Net profit for the year grew by 2.1% YoY.
• Net profit margins during the year declined from 40.2% in FY22 to 35.8% in FY23.

VST INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,957	9,124	14.7%
Other income	Rs m	467	764	63.7%
Total Revenues	Rs m	8,423	9,888	17.4%
Gross profit	Rs m	4,116	3,827	-7.0%
Depreciation	Rs m	301	302	0.3%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	4,282	4,289	0.2%
Tax	Rs m	1,080	1,019	-5.6%
Profit after tax	Rs m	3,202	3,270	2.1%
Gross profit margin	%	51.7	41.9
Effective tax rate	%	25.2	23.8
Net profit margin	%	40.2	35.8

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VST INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -8.3%.
• Current assets fell 27% and stood at Rs 8 billion, while fixed assets rose 88% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 16 billion during FY22, thereby witnessing a growth of 4%.

VST INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,733	11,773	9.7
Current Liabilities	Rs m	4,934	4,524	-8.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,690	16,358	4.3
Current assets	Rs m	11,420	8,320	-27.2
Fixed Assets	Rs m	4,270	8,039	88.3
Total Assets	Rs m	15,690	16,358	4.3

VST INDUSTRIES Cash Flow Statement Analysis

• VST INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 467 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 46 million from the Rs -52 million net cash flows seen during FY22.

VST 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	2,772	1,815	-34.5%
Cash Flow from Investing Activities	Rs m	-958	467	-
Cash Flow from Financing Activities	Rs m	-1,866	-2,235	-
Net Cash Flow	Rs m	-52	46	-

Current Valuations for VST INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 211.8, an improvement from the EPS of Rs 207.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,576.3, stands at 17.1 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 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 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	515.3	590.9
TTM Earnings per share	Rs	207.4	211.8
Diluted earnings per share	Rs	207.4	211.8
Price to Cash Flow	x	13.5	14.5
TTM P/E ratio	x	14.8	17.1
Price / Book Value ratio	x	4.8	4.4
Market Cap	Rs m	51,576	51,901
Dividends per share (Unadj.)	Rs	140.0	150.0

Ratio Analysis for VST INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY23, from 2.3x during FY22. 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 27.8% during FY23, from 29.8% 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 36.4% during FY23, from 39.9% 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 20.0% during FY23, from 20.4% 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	2.3	1.8
Debtors’ Days	Days	153	173
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.4	20.0
Return on equity	%	29.8	27.8
Return on capital employed	%	39.9	36.4

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 up from Rs 3,409.2 to Rs 3,576.3, registering a gain of Rs 167.1 or around 4.9%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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