Highlights
- Sales over the Year and quarter: The company experienced a substantial growth of 16.85 % in the past year, substantial increase in net sales/revenue by 4.79 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -61.09 %, Marginal decrease of -66% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Varroc Engineering Limited. Notable increase of 45.84 % in net profit Year to Year, Varroc Engineering Limited’s profitability dropped by -84.8 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 43.63 % Year to Year. EPS decreased by -85.15 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1690.058 Cr | Rs. 1884.588 Cr | Rs. 1974.855 Cr | + 4.79 % | + 16.85 % |
| Expenses | Rs. 1533.93 Cr | Rs. 1709 Cr | Rs. 1753.82 Cr | + 2.62 % | + 14.34 % |
| Operating Profit | Rs. 156.13 Cr | Rs. 175.59 Cr | Rs. 221.04 Cr | + 25.88 % | + 41.57 % |
| OPM % | 9.24 % | 9.32 % | 11.19 % | + 1.87 % | + 1.95 % |
| Other Income | Rs. 29.71 Cr | Rs. 34 Cr | Rs. 11.56 Cr | -66 % | -61.09 % |
| Interest | Rs. 52.53 Cr | Rs. 49.56 Cr | Rs. 45.14 Cr | -8.92 % | -14.07 % |
| Depreciation | Rs. 92.17 Cr | Rs. 89.27 Cr | Rs. 82.5 Cr | -7.58 % | -10.49 % |
| Profit before tax | Rs. 41.14 Cr | Rs. 70.76 Cr | Rs. 104.96 Cr | + 48.33 % | + 155.13 % |
| Tax % | 3.42 % | 685.45 % | 46.68 % | -638.77 % | + 43.26 % |
| Net Profit | Rs. 40.02 Cr | Rs. 383.89 Cr | Rs. 58.36 Cr | -84.8 % | + 45.83 % |
| EPS in Rs | Rs. 2.59 | Rs. 25.05 | Rs. 3.72 | -85.15 % | + 43.63 % |
Today, we’re looking at Varroc Engineering Limited’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 16.85 %. However, it did see a marginal increase of 4.79 % from the previous quarter. Expenses ticked up slightly by 2.62 % quarter-on-quarter, aligning with the annual rise of 14.34 %. Operating profit, while up 41.57 % compared to last year, faced a quarter-on-quarter increase of 25.88 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 1.95 %, but an expansion of 1.87 % sequentially. Other income fell by -66 % compared to the last quarter, despite an annual decline of -61.09 %. Interest expenses dropped significantly by -8.92 % from the previous quarter, yet the year-over-year decrease remains at a moderate -14.07 %. Depreciation costs fell by -7.58 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -10.49 %. Profit before tax grew annually by 155.13 % but saw an increase from the preceding quarter by 48.33 %.
Tax expenses as a percentage of profits increased slightly by 43.26 % compared to last year, with a more notable quarter-on-quarter decrease of -638.77 %. Net profit rose by 45.83 % year-on-year but witnessed a -84.8 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 43.63 % but a quarterly fall of -85.15 %. In summary, Varroc Engineering Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1690.058 Cr | Rs. 1884.588 Cr | Rs. 1974.855 Cr | + 4.79 % | + 16.85 % |
| Expenses | Rs. 1533.93 Cr | Rs. 1709 Cr | Rs. 1753.82 Cr | + 2.62 % | + 14.34 % |
| Operating Profit | Rs. 156.13 Cr | Rs. 175.59 Cr | Rs. 221.04 Cr | + 25.88 % | + 41.57 % |
| Net Profit | Rs. 40.02 Cr | Rs. 383.89 Cr | Rs. 58.36 Cr | -84.8 % | + 45.83 % |
| EPS in Rs | Rs. 2.59 | Rs. 25.05 | Rs. 3.72 | -85.15 % | + 43.63 % |
In reviewing Varroc Engineering Limited’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 16.85 % year-on-year growth, however, there was a minor increase of 4.79 % from the previous quarter. Expenses rose by 14.34 % compared to the previous year, with a 2.62 % increase quarter-on-quarter. Operating Profit surged by 41.57 % annually, and saw a 25.88 % increase from the last quarter.
Net Profit showed yearly increase of 45.83 %, and experienced a -84.8 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 43.63 % annually, however dipped by -85.15 % compared to the last quarter. In essence, while Varroc Engineering Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
