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Vikasa to Hold AGM on July 15th to Announce Dividend Amount

Visaka Industries Limited will hold its 42nd Annual General Meeting on July 15, 2024, to announce a dividend of ₹0.50 per share and discuss key financial and operational updates.

by Damodharan N

Updated Jun 26, 2024

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Vikasa to Hold AGM on July 15th to Announce Dividend Amount

Visaka Industries Limited has announced that its 42nd Annual General Meeting (AGM) will take place on Monday, July 15, 2024, at 11:30 AM IST. The meeting will be conducted via video conferencing (VC) and other audio-visual means (OAVM).

Key points on the agenda include:

  1. Financial Statements: The members will consider and adopt the audited financial statements (standalone and consolidated) for the year ended March 31, 2024, along with the reports of the Board of Directors and Auditors.
  2. Dividend Declaration: The company will declare a final dividend of ₹0.50 per equity share of ₹2 each for the financial year 2023-24. The Board of Directors recommended this final dividend in their meeting held on May 15, 2024. If approved at the AGM, it will be paid to all eligible members within thirty days from the conclusion of the meeting. Over the 28 years ending in FY 2023-24, the company paid an aggregated ₹216 crore in dividends. Below is a summary of recent dividend payouts:
    • FY24: ₹4.32 crore
    • FY23: ₹17.28 crore
    • FY22: ₹25.36 crore
    • FY21: ₹24.72 crore
    • FY20: ₹23.82 crore
  3. Additionally, the stock price appreciation for the company over various periods has been noted as follows:
    • 1-year: 55%
    • 3-year: 4%
    • 5-year: 5%
    • 10-year: 22%
  4. For comparison, the Sensex appreciation over the same periods was:
    • 1-year: 25%
    • 3-year: 14%
    • 5-year: 14%
    • 10-year: 13%
  5. Director Re-appointment: The re-appointment of Shri G. Vamsi Krishna, who retires by rotation and is eligible for re-appointment, will be considered.
  6. Cost Auditors' Remuneration: The remuneration of ₹1,65,000 plus applicable taxes and out-of-pocket expenses for M/s. Sagar & Associates, the practicing cost accountants, will be ratified.
  7. Re-appointment of Managing Director: The re-appointment of Smt. G. Saroja Vivekanand as Managing Director for a five-year term effective from October 24, 2024, will be considered.
  8. Whole-time Director & COO: The change in designation and remuneration of Shri. Joginapalli Pruthvidhar Rao, effective from April 1, 2024, will be discussed.
  9. Minimum Remuneration: Approval and ratification of the minimum remuneration paid to Smt. G. Saroja Vivekanand for the financial year 2023-24 will be addressed.
  10. Registered Office Shift: The company will seek consent for shifting its registered office from Yelumala Village, Sangareddy district, Telangana to Visaka Towers, Secunderabad, Hyderabad district, Telangana.

Vikasa Annual Report

Visaka Industries stands on the cusp of a significant growth phase. The company is focused on addressing current market needs while building for the future. The future growth is expected to be primarily driven by V-Next products. Plans include increasing production, establishing new plants, diversifying the product portfolio, and increasing revenue from non-asbestos sheets.

Business Segments

The company operates in four big areas that are needed in our value-added consumption products in our daily lives. even though most people use them they don't know the value addition done in those products.  

  1. Fibre Cement Boards and Panels: Leveraging the expansion of India's construction sector.
  2. Synthetic Yarns: Catering to the demand for quality apparel.
  3. Cement Roofing Sheets: Providing economical rural roofing solutions.
  4. ATUM Solar Panels: Offering green power with roofing shelter.

Key Financial Data

The company’s key financial data for shareholders to look out for in the context of whether the company has stable finances is given and how it fared well in the outgoing financial year of FY 23-24

  1. Sales Revenues: Declined by 8% to ₹1516 crore in 2023-24 due to lower volumes.
  2. EBITDA: Decreased to ₹99 crore from ₹147 crore in 2022-23 due to higher raw material costs and lower volumes.
  3. Net Profit: Dropped to ₹2.53 crore in 2023-24 from ₹54.79 crore in the previous year.
  4. EBITDA Margin: Declined by 245 basis points to 6.51% due to increased resource costs.
  5. RoCE (Return on Capital Employed): Decreased by 488 basis points due to lower profits and higher capital employed.
  6. Net Worth: Declined by 2.3% to ₹755.67 crore.
  7. Interest Cover: Stood at 2.7x, indicating the company’s ability to service its debt.

Segmental Growth and Initiatives

As we have seen with four major segments catering to different market needs the company underlined key challenges in obtaining the raw materials and improving the product quality among others. 

  1. V-Next Products: Expansion and increased production to tap into growing market segments.
  2. Cement Roofing Sheets: Experienced underperformance due to higher raw material costs and lower demand.
  3. Synthetic Yarns: Faced challenges due to a slowdown in key markets and increased global inflation.
  4. ATUM Solar Panels: Received recognition for innovation, with significant potential in household rooftop electrification.

Technology and Efficiency Initiatives

The Vikasa had added new improvements in the year FY 23-24 and now let's see what new initiatives they have done to improve the company’s standing. 

  • Automation and Quality Control: Implemented advanced systems to boost production efficiency and ensure product quality.
  • Energy Efficiency: Upgraded equipment to reduce energy consumption and costs.
  • Eco-Friendly Practices: Pursued zero effluents discharge policy and installed solar energy systems.

Financial Challenges

The annual report of the vikasa highlighted the company’s area of struggle which primarily deals with higher raw material costs in the two big segments.  

  • Higher Raw Material Costs: Increased costs impacted profitability in cement roofing.
  • Market Slowdown: Decline in demand in the textile segment and overall economic challenges.

Outlook

Despite the challenges, Visaka Industries remains integrated with India's growth story. The company’s diversified product lines provide resilience across market cycles, positioning it for recovery and future growth. The strategic focus on expanding V-Next products, improving efficiency, and enhancing sustainability is expected to drive long-term value for stakeholders.

You can find the annual report along with the AGM Notice here.

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Vikasa 

Founded in 1981 by Dr. G. Vivekanand, Visaka Industries Limited is a leading manufacturer of sustainable building materials and synthetic yarns in India. The company operates 13 manufacturing plants and 13 marketing offices across the country.

Visaka's product portfolio includes cement roofing sheets under the Visaka/Shakti brands, fibre cement boards and panels under the V-Next brand, synthetic yarns marketed as Wonder Yarn, and innovative solar roofing solutions under the ATUM brand. With a robust distribution network of over 7,000 dealers, Visaka serves urban, rural, and suburban areas.

Visaka Industries is known for its commitment to quality and innovation. The company has a workforce of 1,945 employees, with 75% having over five years of tenure. Visaka's equity shares are actively traded on the National Stock Exchange and Bombay Stock Exchange, with a market capitalization of ₹920 crore as of March 31, 2024.

The company emphasizes sustainable development through its advanced manufacturing technologies and eco-friendly practices, making it a preferred choice for architects, builders, and engineers. Visaka also contributes to societal welfare through the Visaka Charitable Trust, demonstrating its dedication to social responsibility.


Vikasa to Hold AGM on July 15th to Announce Dividend Amount- FAQs

1. What was Visaka Industries' total revenue for FY 2023-24?      

The Visaka Industries' total revenue for FY 2023-24 is ₹1516 crore.

2. How did Visaka Industries' sales revenue change in FY 2023-24?  

Visaka Industries' Sales revenue declined by 8%.

3. What was the primary reason for the decline in sales revenue in FY 2023-24?  

The primary reason for the decline in sales is weaker performance in the synthetic yarn business.

4. What is EBITDA?  

Earnings before interest, tax, depreciation, and amortization.

5. What was Visaka Industries' EBITDA for FY 2023-24?  

Visaka Industries' EBITDA for FY 2023-24 is ₹99 crore.

6. Why did EBITDA decline in FY 2023-24?  

Due to higher raw material costs and lower volumes.

7. What was Visaka Industries' net profit for FY 2023-24?  

Visaka Industries' net profit for FY 2023-24 is ₹2.53 crore.

8. Why is net profit important?  

It shows the company's ability to generate value for shareholders after all expenses.

9. What caused the decline in net profit for FY 2023-24?      

The Net decline for profit is Weaker performance in the synthetic yarns and cement roofing sheets businesses.

10. What is the EBITDA margin?  

A profitability ratio that measures earnings before interest, taxes, depreciation, and amortization as a percentage of revenue.

11. What was Visaka Industries' EBITDA margin for FY 2023-24?  

Visaka Industries' EBITDA margin is 6.51%.

12. Why is the EBITDA margin measured?  

It indicates the company's operating efficiency and pricing strategy.

13. What was the Return on Capital Employed (RoCE) for FY 2023-24?  

The Return on Capital Employed (RoCE) for FY 2023-243.01%.

14. Why is RoCE important?  

It measures profitability and efficiency in using capital.

15. What caused the decline in RoCE in FY 2023-24?  

Lower profits and increased capital employed.

16. What was the debt cost for FY 2023-24?  

The debt cost for FY 2023-24 is 7.9%.

17. Why is debt cost measured?  

It shows the average cost of consolidated debt and indicates the company's ability to manage its debt.

18. What was the interest cover for FY 2023-24?        

The interest cover for FY 2023-242.7x.

19. Why is interest cover important?  

It indicates the company's ability to service its interest outflow.

20. What was Visaka Industries' net worth at the end of FY 2023-24?  

Visaka Industries' net worth at the end of FY 2023-24 is ₹755.67 crore.

21. Why is net worth measured?        

It indicates the financial soundness of the company.

22. What was the market capitalization of Visaka Industries as of March 31, 2024?  

The market capitalization of Visaka Industries is ₹920 crore.

23. What was the credit rating of Visaka Industries for FY 2023-24?  

The credit rating of Visaka Industries for FY 2023-24 is A+.

24. How did the credit rating change in FY 2023-24?      

It was downgraded from AA- to A+.

25. What were the capital expenditures for FY 2023-24?  

The capital expenditures for FY 2023-24 is ₹118 crore.

26. What percentage of total capital employed was working capital for FY 2023-24?  

The percentage of total capital employed is 41%.

27. What were the cash and cash equivalents at the end of FY 2023-24?  

The cash and cash equivalents at the end of FY 2023-24 is ₹35 crore

28. What percentage of overall revenues came from exports in FY 2023-24?  

The percentage of overall revenues came from exports in FY 2023-24 is 6.8%.

29. What percentage of overall revenues came from textile exports in FY 2023-24?      

The overall revenue percentage from textile exports is 3.0% forFY 2023-24

30. What was the average yarn realization per kg in FY 2023-24?  

The average yarn realization per kg in FY 2023-24 is ₹228.

31. What was the dividend payout for FY 2023-24?  

The dividend payout for FY 2023-24 is ₹0.50 per equity share.

32. What was the total dividend payout in FY 2023-24?        

The total dividend payout in FY 2023-24 is ₹4.32 crore.

33. What was the percentage increase in stock price over the last year?  

The percentage increase in stock price is 55%.

34. How did the Sensex perform over the same period?  

Sensex appreciated by 25%.

35. What was the percentage of revenues derived from non-asbestos sheet businesses in FY 2023-24?    

The percentage of revenues derived from non-asbestos sheet businesses in FY 2023-24 is 40%.

36. How did the cement roofing sheet business perform in FY 2023-24?  

It experienced higher raw material costs and lower demand.

37. What was the capacity utilization in roofing sheet plants for FY 2023-24?  

The capacity utilization in roofing sheet plants for FY 2023-24 is 95%.

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