Revenue and Operating Income Trends
Examining the net sales figures from fiscal year ending March 2017 through March 2023 reveals a pattern of volatility with an overall upward trend. The company’s net sales peaked at ₹2.31 crores in March 2018 before experiencing a decline to ₹0.92 crores in March 2021. However, a notable recovery followed, with net sales rising to ₹2.08 crores by March 2023. Total operating income mirrored this trend, reflecting the absence of other operating income throughout the period.
Operating expenses, excluding depreciation, have generally increased in line with revenue growth, reaching ₹1.00 crore in March 2023 from ₹0.26 crore in March 2021. Employee costs have been a significant component, rising steadily from ₹0.09 crore in 2021 to ₹0.66 crore in 2023, indicating possible expansion or increased operational activities.
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Profitability and Margins
Operating profit before depreciation and interest (PBDIT) excluding other income has shown considerable variation, peaking at ₹1.99 crores in March 2018 and dipping to ₹0.27 crore in March 2020. The latest figures for March 2023 indicate a recovery to ₹1.08 crores. Operating profit margins have fluctuated accordingly, with a high of 86.02% in 2018 and a more recent figure of 51.92% in 2023, reflecting improved operational efficiency compared to earlier years.
Profit before tax (PBT) and profit after tax (PAT) have followed a similar trajectory. PAT margins have declined from a peak of 60.48% in 2018 to 20.67% in 2023, signalling increased costs or competitive pressures. Nonetheless, the company has maintained positive net profits throughout, with consolidated net profit stabilising around ₹0.43 crore in the latest fiscal year.
Earnings per share (EPS) have remained relatively stable at ₹0.05 in recent years, down from ₹0.17 in 2018, consistent with the profit margin trends.
Balance Sheet and Financial Position
Viji Finance’s balance sheet reflects steady growth in shareholder’s funds, rising from ₹10.43 crores in 2019 to ₹12.18 crores in 2024. The company has maintained a consistent equity capital base of ₹8.25 crores since 2019. Reserves have also increased progressively, indicating retained earnings accumulation.
Total liabilities have expanded from ₹15.24 crores in 2019 to ₹25.36 crores in 2024, largely driven by an increase in short-term borrowings, which rose from ₹3.94 crores to ₹12.05 crores over the same period. The absence of long-term borrowings suggests a reliance on short-term financing for operational needs.
Asset composition shows a rise in net block value, reaching ₹2.04 crores in 2024, alongside a significant increase in long-term loans and advances, which climbed to ₹22.93 crores. Current assets remain modest, with cash and bank balances around ₹0.19 crore in 2024. Notably, net current assets have been negative consistently, indicating working capital challenges.
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Cash Flow and Operational Efficiency
Cash flow data indicates persistent outflows from operating activities in recent years, with negative cash flow after changes in working capital recorded at ₹2 crores in both 2022 and 2023. Investing activities have been minimal, with a slight outflow in 2023. Financing activities have provided positive inflows, notably ₹4 crores in 2023, likely supporting the increased short-term borrowings.
The company’s ability to generate positive operating profits despite cash flow challenges suggests a focus on managing operational costs and maintaining profitability margins. However, the negative working capital position warrants attention for liquidity management going forward.
Summary of Historical Performance
Overall, Viji Finance has demonstrated resilience with fluctuating but generally improving revenue and profitability since 2017. The company’s operating margins remain robust relative to its sector, though profit margins have moderated from historic highs. The balance sheet shows growth in equity and reserves, balanced by rising liabilities predominantly in short-term borrowings. Cash flow patterns highlight the need for careful working capital management.
Investors should weigh the company’s consistent profitability and operational efficiency against its liquidity position and borrowing profile when considering its historical performance and future prospects.
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