Vikram Solar Annual Reports, Balance Sheet and Financials

Vikram Solar Limited Balance Sheet (Rs in Millions)

Vikram Solar Limited Profit & Loss Statement (Rs in Millions)

Vikram Solar Limited Consolidated Cash Flow Statement (Rs in Millions) 

 Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

Profit /(loss) before tax:

The profit before tax for the year ended 31st March 2024 is ₹1,072.83 million, significantly higher than the previous year 's ₹188.74 million. This indicates an improvement in the company 's profitability.

Depreciation and amortisation expenses:

The depreciation and amortisation expenses have increased to ₹1,311.61 million in 2024 from ₹553.43 million in 2023. This suggests that the company has a higher asset base or has invested in new assets that require depreciation.

Depreciation on Right of Use assets:

Depreciation on right-of-use assets has slightly decreased from ₹85.94 million in 2023 to ₹68.48 million in 2024. This might indicate a reduction in leased assets.

Finance cost:

The finance cost has risen to ₹1,498.28 million in 2024 from ₹1,203.29 million in 2023, reflecting an increase in the company 's borrowings or a rise in interest rates.

Finance cost on leasing arrangement:

There is an increase in the finance cost on leasing arrangements from ₹17.19 million in 2023 to ₹47.87 million in 2024. This suggests higher lease obligations.

Interest income:

Interest income has remained relatively stable, slightly decreasing from ₹61.05 million in 2023 to ₹60.33 million in 2024.

Profit on sale of investments:

There is no profit from the sale of investments in 2024, whereas a nominal profit of ₹0.31 million was recorded in 2023.

Allowance for expected credit loss:

The allowance for expected credit loss has increased significantly from ₹24.69 million in 2023 to ₹689.15 million in 2024. This indicates a higher risk of credit defaults.

Loss on sale/disposal of property, plant, and equipment:

The loss on the sale or disposal of property, plant, and equipment decreased to ₹0.08 million in 2024 from ₹11.09 million in 2023, showing improved asset management.

Unrealised Foreign Exchange Difference:

In 2024, there is an unrealised foreign exchange difference of ₹10.09 million, compared to a gain of ₹65 million in 2023, indicating some currency exchange losses.

Provision for warranties:

Provision for warranties has increased significantly from ₹7.27 million in 2023 to ₹88.71 million in 2024, suggesting higher warranty-related costs.

Operating profit before working capital changes:

The operating profit before working capital changes has increased to ₹4,726.77 million in 2024 from ₹1,965.28 million in 2023, showing improved operational efficiency.

Movement in working capital:

The working capital adjustments reflect the changes in the company 's operating assets and liabilities. A decrease in inventories in 2024 indicates better inventory management, while the increase in financial and non-financial liabilities and assets reflects changes in the company 's obligations and investments.

Cash Generated from operations:

The cash generated from operations is slightly lower in 2024 at ₹1,629.94 million compared to ₹1,976.42 million in 2023, despite the higher operating profit, due to changes in working capital.

Income tax paid (net of refund):

Income tax payments have increased from ₹22.12 million in 2023 to ₹109.7 million in 2024, reflecting higher profitability.

Net cash flow from operating activities:

The net cash flow from operating activities has decreased to ₹1,520.24 million in 2024 from ₹1,954.30 million in 2023, largely due to the impact of working capital changes.

Cash Flow from Investing Activities

Payment for acquisition of property, plant, and equipment, CWIP, and intangible assets:

The payment for the acquisition of these assets has decreased to ₹715.97 million in 2024 from ₹1,056.99 million in 2023, indicating a reduction in capital expenditure.

Payment for acquisition of right to use assets:

No payments were made for the acquisition of right-to-use assets in 2024, compared to ₹256.85 million in 2023, suggesting no new lease agreements.

Proceeds from sale/disposal of property, plant, and equipment:

The proceeds from the sale or disposal of property, plant, and equipment increased slightly to ₹3.77 million in 2024 from ₹1.81 million in 2023.

Intercorporate loan given and received back:

In 2024, the company received back ₹63.99 million from intercorporate loans, while there was an outflow of ₹30.91 million in 2023, reflecting a recovery of funds.

Net change in fixed deposits:

There was a net outflow of ₹42.1 million in 2024 due to fixed deposits, compared to a net inflow of ₹172.85 million in 2023.

Interest received:

Interest received decreased slightly from ₹65.03 million in 2023 to ₹53.4 million in 2024.

Net cash used in investing activities:

The net cash used in investing activities reduced to ₹-636.91 million in 2024 from ₹-1,105.06 million in 2023, indicating lower investment outflows.

Cash Flow from Financing Activities

Proceeds from long-term borrowings:

The company raised ₹265 million from long-term borrowings in 2024, while there were no such proceeds in 2023.

Repayment of long-term borrowings:

The repayment of long-term borrowings decreased to ₹498.2 million in 2024 from ₹612.26 million in 2023.

Increase in cash credit and demand loans from banks (net):

There was an increase in cash credit and demand loans from banks amounting to ₹508 million in 2024, up from ₹420.66 million in 2023.

Proceeds from other short-term borrowings:

Proceeds from other short-term borrowings decreased slightly to ₹430.45 million in 2024 from ₹534.47 million in 2023.

Repayment of lease liabilities:

The repayment of lease liabilities decreased to ₹88.58 million in 2024 from ₹104.26 million in 2023, indicating a reduction in lease obligations.

Interest paid on leasing arrangements:

Interest paid on leasing arrangements increased to ₹47.87 million in 2024 from ₹17.19 million in 2023.

Interest paid:

The interest paid decreased slightly to ₹1,379.06 million in 2024 from ₹1,243.65 million in 2023.

Net cash used in financing activities:

The net cash used in financing activities decreased to ₹-810.26 million in 2024 from ₹-1,022.23 million in 2023, reflecting a lower outflow related to financing.

Net (Decrease)/Increase in Cash and Cash Equivalents

Net (decrease)/increase in Cash and Cash Equivalents:

There was a net increase in cash and cash equivalents of ₹73.07 million in 2024, compared to a decrease of ₹172.99 million in 2023.

Effect of Exchange Rate on Consolidation of Foreign Subsidiaries:

The exchange rate effect on the consolidation of foreign subsidiaries was minimal in both years, at ₹0.11 million in 2024 and ₹0.62 million in 2023.

Cash and Cash Equivalents at the beginning and end of the year:

The cash and cash equivalents increased from ₹16.31 million at the beginning of 2024 to ₹89.49 million by the end of the year, indicating improved liquidity.

Financial Ratios of Vikram Solar Limited

Here is a summary of the financial and operational metrics for Vikram Solar Limited for the years 2024 and 2023:

Financial Ratio Analysis for 2024

Current Ratio (1.39 in 2024 vs. 1.35 in 2023):

The current ratio has slightly improved, indicating that the company 's liquidity position has strengthened. With a ratio of 1.39, the company has ₹1.39 in current assets for every ₹1.00 of current liabilities, showing a better ability to cover short-term obligations.

Debt-Equity Ratio (1.81 in 2024 vs. 2.02 in 2023):

The debt-equity ratio has decreased from 2.02 to 1.81, reflecting a reduction in the company’s reliance on debt relative to its equity. This indicates improved financial stability and a lower risk of insolvency.

Debt Service Coverage Ratio (1.85 in 2024 vs. 1.02 in 2023):

The debt service coverage ratio has significantly improved, suggesting that the company is in a much better position to meet its debt obligations. A ratio of 1.85 means the company generates ₹1.85 in earnings for every ₹1.00 of debt service, compared to just barely covering its debt service in 2023.

Return on Equity Ratio (19.67% in 2024 vs. 4.05% in 2023):

The return on equity (ROE) has increased dramatically, indicating that the company is generating significantly higher returns on shareholders ' equity. This is a sign of strong profitability and efficient use of equity capital.

Inventory Turnover Ratio (4.38 in 2024 vs. 5.07 in 2023):

The inventory turnover ratio has decreased, suggesting that inventory is turning over less frequently than in the previous year. This could indicate slower sales or higher inventory levels, which may require attention to avoid potential obsolescence or excess holding costs.

Trade Receivables Turnover Ratio (2.34 in 2024 vs. 2.21 in 2023):

The trade receivables turnover ratio has slightly improved, indicating a marginally faster collection of receivables. This suggests better cash flow management and improved efficiency in collecting outstanding debts from customers.

Trade Payables Turnover Ratio (3.11 in 2024 vs. 2.87 in 2023):

The trade payables turnover ratio has increased, implying that the company is paying its suppliers more quickly than in the previous year. While this may improve relationships with suppliers, it could also affect the company’s cash flow if not managed carefully.

Net Capital Turnover Ratio (4.52 in 2024 vs. 4.54 in 2023):

The net capital turnover ratio has remained relatively stable, indicating consistent efficiency in using working capital to generate sales. This stability reflects well on the company 's operational effectiveness.

Net Profit Ratio (3.17% in 2024 vs. 0.70% in 2023):

The net profit ratio has increased significantly, demonstrating a substantial improvement in profitability. The higher net profit margin indicates that the company is retaining more profit from its revenue, which could be due to better cost management or higher sales.

Return on Capital Employed (20.76% in 2024 vs. 12.78% in 2023):

The return on capital employed (ROCE) has improved considerably, suggesting that the company is generating higher returns from its capital investments. This reflects enhanced efficiency in utilizing capital resources to drive profitability.

Dividend History

 Vikram Solar Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs 1,921.61Millions, while in 2023, they were Rs. 1,130.71 Millions. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.