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ticker=VDI:IN
Annual report of vadilal
FINANCIAL STATEMENTS FOR VADILAL INDUSTRIES LTD (VDI) Year over year, Vadilal Industries has seen their bottom line shrink from 55.2M to 46.9M despite an increase in revenues from 1.9B to 2.4B. An increase in the percentage of sales devoted to cost of goods sold from 74.18% to 75.89% was a key component in the falling bottom line in the face of rising revenues. Income statement
Currency in Millions of Indian Rupees

As of:

Mar 31 2008
Restated INR

Mar 31 2009
Restated INR

Mar 31 2010
Reclassified INR

Mar 31 2011
INR

4-Year Trend

Revenues Other Revenues TOTAL REVENUES Cost of Goods Sold GROSS PROFIT Selling General & Admin Expenses, Total R&D Expenses Depreciation & Amortization, Total Other Operating Expenses OTHER OPERATING EXPENSES, TOTAL OPERATING INCOME Interest Expense Interest and Investment Income NET INTEREST EXPENSE Income (Loss) on Equity Investments Currency Exchange Gains (Loss) Other Non-Operating Income (Expenses) EBT, EXCLUDING UNUSUAL ITEMS Gain (Loss) on Sale of Investments Gain (Loss) on Sale of Assets Other Unusual Items, Total Other Unusual Items EBT, INCLUDING UNUSUAL ITEMS Income Tax Expense Minority Interest in Earnings

1,345.4 17.1 1,362.5 985.8 376.6 203.0 0.5 41.5 31.1 276.2 100.5 -37.5 10.7 -26.8 1.1 1.6 -14.5 61.7 0.0 -0.3 0.0 0.0 61.3 22.2 -0.1

1,498.0 -1,498.0 1,110.6 387.5 213.2 0.6 48.8 40.0 302.7 84.8 -65.7 10.0 -55.7 0.2 1.0 -8.8 21.4 0.0 0.5 1.7 1.7 23.7 12.6 0.0

1,907.2 6.1 1,913.3 1,414.7 498.6 254.3 0.6 57.1 41.8 353.7 144.8 -61.6 19.8 -41.8 -5.5 -22.8 85.8 0.0 0.9 0.0 0.0 86.7 31.4 0.0

2,384.0 9.6 2,393.6 1,809.1 584.5 282.6 1.1 80.7 49.5 413.9 170.6 -94.2 24.3 -70.0 -0.0 -26.5 74.1 -0.3 0.0 -1.8 0.0 72.1 25.1 -0.1

Earnings from Continuing Operations NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

39.1 39.1 39.1 39.1

11.1 11.0 11.0 11.0

55.2 55.2 55.2 55.2

47.0 46.9 46.9 46.9

balance sheet
Vadilal Industries may have more financial risk than other companies in the Food Products industry as it is one of the most highly leveraged with a Debt to Total Capital ratio of 77.07%. This ratio actually increased over the last year. However, an examination of near-term assets and liabilities shows that, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Cash Collection is a strong suit as the company is more effective than most in the industry. As of the end of 2011, its uncollected receivables totaled 345.5M, which, at the current sales rate provides a Days Receivables Outstanding of 51.53. Last, Vadilal Industries is among the most efficient in its industry at managing inventories, with only 113.27 days of its Cost of Goods Sold tied up in inventory.
Currency in Millions of Indian Rupees

As of:

Mar 31 2008
Restated INR

Mar 31 2009
Restated INR

Mar 31 2010
Reclassified INR

Mar 31 2011
INR

4-Year Trend

Assets Cash and Equivalents Short-Term Investments TOTAL CASH AND SHORT TERM INVESTMENTS Accounts Receivable Notes Receivable Other Receivables TOTAL RECEIVABLES Inventory Other Current Assets TOTAL CURRENT ASSETS Gross Property Plant and Equipment Accumulated Depreciation NET PROPERTY PLANT AND EQUIPMENT Long-Term Investments Deferred Charges, Long Term Other Long-Term Assets TOTAL ASSETS 15.0 0.1 15.1 274.2 18.7 7.1 300.0 308.6 97.2 720.9 906.4 -375.6 530.8 19.0 4.3 -1,274.9 16.5 0.2 16.7 296.4 18.8 6.3 321.5 370.0 91.1 799.4 982.6 -422.2 560.3 18.9 4.2 0.0 1,382.8 26.6 0.2 26.8 327.6 16.3 16.1 360.0 559.8 103.9 1,050.4 1,315.0 -475.7 839.3 0.5 6.3 0.0 1,896.5 15.5 0.2 15.7 345.5 20.9 28.9 395.3 563.1 124.5 1,098.6 1,781.7 -553.7 1,228.0 0.5 5.0 0.0 2,332.0

LIABILITIES & EQUITY Accounts Payable Accrued Expenses Short-Term Borrowings Current Portion of Long-Term Debt/Capital Lease Current Income Taxes Payable Other Current Liabilities, Total TOTAL CURRENT LIABILITIES Long-Term Debt Minority Interest Unearned Revenue, Non-Current Deferred Tax Liability Non-Current TOTAL LIABILITIES Common Stock Additional Paid in Capital Retained Earnings Comprehensive Income and Other TOTAL COMMON EQUITY TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 126.6 15.1 294.1 53.2 9.7 162.5 661.1 204.5 0.6 3.8 50.6 920.0 71.9 48.7 213.6 20.0 354.3 354.9 1,274.9 121.9 18.6 316.5 92.9 4.0 157.2 711.1 256.7 0.7 3.5 57.8 1,029.1 71.9 48.7 214.6 17.9 353.0 353.7 1,382.8 214.5 21.8 350.2 107.1 25.7 261.4 980.7 464.8 0.7 3.2 54.9 1,503.6 71.9 48.7 260.3 11.3 392.2 392.9 1,896.5 156.9 19.4 528.6 154.3 3.7 217.5 1,080.4 745.4 0.8 2.9 78.3 1,907.0 71.9 48.7 294.7 9.0 424.3 425.0 2,332.0

http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=494492
Q: How fast is this business growingthe ice-cream business between FY10 and FY11? What kind of growth rate are you expecting? A: We are looking at around 20-25% growth in the current year Q: Is the industry growing at that rate or are you going to increase your market share? A: We are slightly growing better than what the industry is growing. The industry is growing at 1520% and we are growing around 20-25%. It is slightly above the industry average. Q: Which regions does most of your growth come from? A: We are more present in Western, northern and Eastern sector and we see growth in all the three sectors coming up well. We have more growth in ice-cream than the processed food currently. Q: What are you doing as a management to close to gap with two of your nearest competitors that is Mother Diary and Kwality Walls because Amul is quite a distance away from you in terms of share? A: We are quite aggressive in terms of our marketing strategy. We are working on developing the brand by being more aggressive on value added product where branding is being done and consumers are more connected to value added products. So some of these things are helping us. We are putting lot of investment in terms of plant and machinery, sales generating asset. Last year and current year put together we are investing around Rs 100 crore in upgrading the facility with better products, better infrastructure and better quality.

Apart from that sale generating assets we are putting a huge amount of money, which is giving us better growth and keeping us higher than the competitors and that is what we are aiming at. Q: Do you see any opportunities in the overseas market like Middle East etc for Vadilal? A: In the long run yes. As I mentioned earlier, we are upgrading the plantso with that upgrading of the plant we are looking at closer markets like Middle East where we could be a niche player and already the brand is popular in some of those areas where Indians are residing. We have that advantage that the brand is popular in minds of those NRI markets. Q: Your production capacity is going up quite significantly I think after your investments to close to 3.5 lakh litre by when do you think this expansion will be completed? A: This 3.5 lakh litre will be completed by the end of February 2011. The machines have been ordered and some of them are on the way and the plant should be up by the time season which is starting from March. Q: So for fiscal year 2010 you will get the benefit of this expanded capacity. How much can you translate that into revenues, once you can operate at this enhanced capacity? A: Next year all our efforts, with all those product branding and the product which we have put in the pipeline and the facilities have been looked at, we are looking at topline growth of at least 30% next summer. Q: So FY12 you should be able to cross Rs 300 crore in revenues? A: More than that. Q: Around Rs 350 crore? A: No between Rs 325 to 350 crore. Q: With what kind of bottomline because its not clear on how much of your sales flow through to your bottomline? Last year you had PAT of Rs 6 crore on sales of Rs 191 crore. A: If we look at growth the company is posing for and now we are trying to do little bit more branding, more impulse varieties it should go up by next year by at least 2% on the PAT side. Q: So 2% of Rs 325-350 crore should flow into the PAT level? A: 2% on PAT whatever, we are talking around 3% current PAT which his operating right now should go to 4-4.5%, around 5% PAT to sales that is what we are talking about, what we work and aim for the next year. Q: A 5% PAT margin on sales of Rs 325-350 crore. You are planning to raise some capital through depository receipts could you just confirm that? A: We are talking about issuing around 20 lakh shares that is little bit premature as on today because the market cap is not very favourable for the promoters and we are looking that once the marketcap goes to a significant size then it makes sense for the promoters to dilute and if you look at the size of the company around Rs 250-300 core and the market cap is Rs 100 crore. Thats when we interact with some of the PEwe try to explain to them that this is not a right pricing where would like to dilute. So maybe for us the dilution could be from March-April onwards next year, where we see market valuations might improve with improved profitability and then we might dilute the equity.