Analysis of Upcoming IPO - V R Infraspace Ltd

What V R Infraspace Ltd Do?

Primary objective of V R Infraspace Limited, real estate development business, is building & developing residential & commercial developments in Vadodara, Gujarat, area.

V R Infraspace provides variety of opulent yet reasonably priced residential structures with different kinds of lodging. Every building features play areas, sports & recreation spaces, power backups, & security systems. Under "VR" brand, firm offers residential & commercial projects.

VR One Commercial Business Center is commercial project that V R Infraspace constructed, along with residential buildings VR Celebrity Luxuri & VR Imperia.

V R Infraspace Ltd Financials

Financial Analysis & Interpretation

Assets
1. Total assets of company have exhibited consistent upward trend over past four periods, reaching 6,118 lakh as of Sept 30, 2023. This indicates continuous investment in resources & potential for business expansion.
2. Comparing period-ended Sept 30, 2023, with preceding complete fiscal year-end of Mar 31, 2023, there's substantial increase in assets, suggesting significant growth within six-month period.
3. However, when compared to fiscal year-end of Mar 31, 2022, & Mar 31, 2021, growth rate appears relatively moderate, indicating potential slowdown in asset accumulation over time.

Revenue
1. Revenue has experienced fluctuation over observed periods, with significant increase from 1,388 lakh in FY 2021 to 1,876 lakh in FY 2023. However, in six-month period ending Sept 30, 2023, revenue decreased to 732 lakh.
2. This decline in revenue from previous fiscal year indicates potential downturn in business operations/market conditions, warranting further investigation into factors influencing sales performance.

Profit After Tax (PAT)
1. Profit after tax has shown volatility, with fluctuations observed across periods. PAT increased from 72 lakh in FY 2021 to 262 lakh in FY 2023, indicating improved profitability over time.
2. However, PAT for six-month period ended September 30, 2023, dropped to 90 lakh compared to previous complete fiscal year. This decline suggests challenges/adjustments affecting company's bottom line within this shorter timeframe.

Net Worth
1. Net worth of company has steadily increased over observed periods, reflecting positive trend in shareholder equity & overall financial health. As of Sept 30, 2023, net worth stood at 1,290 lakh.
2. Consistent growth in net worth indicates effective capital management & value creation for shareholders.

Reserves & Surplus
1. Reserves & Surplus have shown substantial increase over years, indicating retained earnings & accumulated surplus. This signifies company's ability to generate profits & reinvest in its operations for future growth.
2. Growth in reserves & surplus reflects prudent financial management & commitment to building strong financial base.

Total Borrowing
1. Total borrowing has fluctuated over observed periods, with significant decrease from 1,676 lakh in FY 2021 to 972 lakh in FY 2023. This reduction suggests focus on debt reduction/efficient debt management strategies.
2. However, in six-month period ending Sept 30, 2023, total borrowing increased to 661 lakh compared to previous complete fiscal year. This may indicate short-term financing requirements/strategic initiatives necessitating additional funding.

Overall, financial metrics of V R Infraspace demonstrate mixed performance with notable growth in certain areas, such as assets, net worth, & reserves, offset by fluctuations in revenue, profit after tax, & total borrowing. Further analysis into underlying factors influencing these trends is essential to gain comprehensive understanding of company's financial position & performance. Additionally, monitoring these metrics over subsequent periods will provide insights into company's trajectory & effectiveness of strategic initiatives.