VESUVIUS INDIA 2022-23 Annual Report Analysis

Thu, 28 Mar

VESUVIUS INDIA has announced its results for the year ended December 2023. Let us have a look at the detailed performance review of the company during FY22-23.

VESUVIUS INDIA Income Statement Analysis

• Operating income during the year rose 19.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 77.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.9% in CY23 as against 12.0% in CY22.
• Depreciation charges increased by 20.3% and finance costs increased by 148.9% YoY, respectively.
• Other income grew by 41.3% YoY.
• Net profit for the year grew by 82.3% YoY.
• Net profit margins during the year grew from 8.7% in CY22 to 13.3% in CY23.

VESUVIUS INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	13,426	16,031	19.4%
Other income	Rs m	264	373	41.3%
Total Revenues	Rs m	13,690	16,404	19.8%
Gross profit	Rs m	1,612	2,863	77.6%
Depreciation	Rs m	299	359	20.3%
Interest	Rs m	9	22	148.9%
Profit before tax	Rs m	1,569	2,854	81.9%
Tax	Rs m	401	725	80.8%
Profit after tax	Rs m	1,168	2,129	82.3%
Gross profit margin	%	12.0	17.9
Effective tax rate	%	25.5	25.4
Net profit margin	%	8.7	13.3

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VESUVIUS INDIA Balance Sheet Analysis

• The company's current liabilities during CY23 stood at Rs 7 billion as compared to Rs 6 billion in CY22, thereby witnessing an increase of 8.0%.
• Current assets rose 6% and stood at Rs 14 billion, while fixed assets rose 46% and stood at Rs 8 billion in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 22 billion as against Rs 19 billion during CY22, thereby witnessing a growth of 18%.

VESUVIUS INDIA Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	9,978	11,935	19.6
Current Liabilities	Rs m	6,216	6,716	8.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	18,839	22,141	17.5
Current assets	Rs m	13,413	14,215	6.0
Fixed Assets	Rs m	5,426	7,926	46.1
Total Assets	Rs m	18,839	22,141	17.5

VESUVIUS INDIA Cash Flow Statement Analysis

• VESUVIUS INDIA's cash flow from operating activities (CFO) during CY23 stood at Rs 824 million on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs -370 million, an improvement of 476.0% on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs -175 million on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs 279 million from the Rs 1 billion net cash flows seen during CY22.

VESUVIUS INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	1,285	824	-35.9%
Cash Flow from Investing Activities	Rs m	-64	-370	-
Cash Flow from Financing Activities	Rs m	-162	-175	-
Net Cash Flow	Rs m	1,058	279	-73.7%

Current Valuations for VESUVIUS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 104.9, an improvement from the EPS of Rs 57.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,587.6, stands at 34.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 22.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	661.4	789.7
TTM Earnings per share	Rs	57.5	104.9
Diluted earnings per share	Rs	57.5	104.9
Price to Cash Flow	x	22.4	22.2
TTM P/E ratio	x	28.1	34.2
Price / Book Value ratio	x	2.7	4.6
Market Cap	Rs m	27,262	55,358
Dividends per share (Unadj.)	Rs	8.3	12.8

Ratio Analysis for VESUVIUS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during CY23, from 2.2x during CY22. 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 128.4x during CY23, from 175.3x during CY22. 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 17.8% during CY23, from 11.7% during CY23. 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 improved and stood at 24.1% during CY23, from 15.8% during CY22. 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 improved and stood at 9.7% during CY23, from 6.2% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	2.2	2.1
Debtors’ Days	Days	569	736
Interest coverage	x	175.3	128.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.2	9.7
Return on equity	%	11.7	17.8
Return on capital employed	%	15.8	24.1

To see how VESUVIUS INDIA has performed over the last 5 years, please visit here.

VESUVIUS INDIA Share Price Performance

Over the last one year, VESUVIUS INDIA share price has moved up from Rs 1,016.7 to Rs 1,639.1, registering a gain of Rs 622.4 or around 61.2%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,184.9 (up 0.6%). Over the last one year it has moved down from 22,368.3 to 19,184.9, a loss of 3,183 points (down 14.2%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for VESUVIUS INDIA and quarterly results for VESUVIUS INDIA)