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SHOPPERS STOP 2022-23 Annual Report Analysis

Mon, 3 Jul

SHOPPERS STOP has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SHOPPERS STOP Income Statement Analysis

• Operating income during the year rose 59.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 127.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.6% in FY23 as against 12.4% in FY22.
• Depreciation charges increased by 7.5% and finance costs increased by 5.0% YoY, respectively.
• Other income declined by 61.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.8% in FY22 to 2.9% in FY23.

SHOPPERS STOP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	25,188	40,221	59.7%
Other income	Rs m	1,678	641	-61.8%
Total Revenues	Rs m	26,865	40,862	52.1%
Gross profit	Rs m	3,113	7,095	127.9%
Depreciation	Rs m	3,549	3,816	7.5%
Interest	Rs m	2,217	2,327	5.0%
Profit before tax	Rs m	-975	1,592	NA
Tax	Rs m	-521	432	NA
Profit after tax	Rs m	-454	1,160	NA
Gross profit margin	%	12.4	17.6
Effective tax rate	%	53.4	27.1
Net profit margin	%	-1.8	2.9

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SHOPPERS STOP Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 24 billion as compared to Rs 19 billion in FY22, thereby witnessing an increase of 23.8%.
• Long-term debt down at Rs 208 million as compared to Rs 896 million during FY22, a fall of 76.7%.
• Current assets rose 29% and stood at Rs 19 billion, while fixed assets rose 23% and stood at Rs 24 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 43 billion as against Rs 34 billion during FY22, thereby witnessing a growth of 25%.

SHOPPERS STOP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	738	1,930	161.4
Current Liabilities	Rs m	19,392	23,998	23.8
Long-term Debt	Rs m	896	208	-76.7
Total Liabilities	Rs m	34,086	42,723	25.3
Current assets	Rs m	14,947	19,207	28.5
Fixed Assets	Rs m	19,140	23,516	22.9
Total Assets	Rs m	34,086	42,723	25.3

SHOPPERS STOP Cash Flow Statement Analysis

• SHOPPERS STOP's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 42.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -291 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -230 million from the Rs 109 million net cash flows seen during FY22.

SHOPPERS STOP Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	3,826	5,434	42.0%
Cash Flow from Investing Activities	Rs m	-1,016	-291	-
Cash Flow from Financing Activities	Rs m	-2,702	-5,373	-
Net Cash Flow	Rs m	109	-230	-

Current Valuations for SHOPPERS STOP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.6, an improvement from the EPS of Rs -4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 817.7, stands at 77.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 46.5 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	230.0	366.8
TTM Earnings per share	Rs	-4.1	10.6
Diluted earnings per share	Rs	-4.1	10.6
Price to Cash Flow	x	16.5	13.5
TTM P/E ratio	x	-112.6	77.3
Price / Book Value ratio	x	49.1	34.7
Market Cap	Rs m	36,245	66,989
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHOPPERS STOP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY23, from 0.8x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 1.7x during FY23, from 0.6x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 60.1% during FY23, from -61.5% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 183.2% during FY23, from 76.0% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.2% during FY23, from 5.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.8	0.8
Debtors’ Days	Days	0	0
Interest coverage	x	0.6	1.7
Debt to equity ratio	x	1.2	0.1
Return on assets	%	5.2	8.2
Return on equity	%	-61.5	60.1
Return on capital employed	%	76.0	183.2

To see how SHOPPERS STOP has performed over the last 5 years, please visit here.

SHOPPERS STOP Share Price Performance

Over the last one year, SHOPPERS STOP share price has moved up from Rs 475.3 to Rs 817.7, registering a gain of Rs 342.4 or around 72.0%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for SHOPPERS STOP and quarterly results for SHOPPERS STOP)