FUTURE MARKET 2021-22 Annual Report Analysis

Tue, 6 Sep

FUTURE MARKET has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

FUTURE MARKET Income Statement Analysis

• Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.8% in FY22 as against 22.6% in FY21.
• Depreciation charges decreased by 51.8% and finance costs decreased by 5.2% YoY, respectively.
• Other income declined by 39.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 43.9% in FY21 to 31.5% in FY22.

FUTURE MARKET Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	690	853	23.6%
Other income	Rs m	72	44	-39.4%
Total Revenues	Rs m	762	896	17.6%
Gross profit	Rs m	156	212	35.6%
Depreciation	Rs m	386	186	-51.8%
Interest	Rs m	223	212	-5.2%
Profit before tax	Rs m	-381	-142	NA
Tax	Rs m	-79	126	NA
Profit after tax	Rs m	-303	-268	NA
Gross profit margin	%	22.6	24.8
Effective tax rate	%	20.6	-88.4
Net profit margin	%	-43.9	-31.5

FUTURE MARKET Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 3 billion as compared to Rs 4 billion in FY21, thereby witnessing an decrease of -26.4%.
• Long-term debt stood at Rs 990 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets fell 17% and stood at Rs 2 billion, while fixed assets fell 7% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 5 billion as against Rs 6 billion during FY21, thereby witnessing a fall of 11%.

FUTURE MARKET Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,107	418	-62.2
Current Liabilities	Rs m	3,529	2,598	-26.4
Long-term Debt	Rs m	0	990	0.0
Total Liabilities	Rs m	5,642	5,008	-11.2
Current assets	Rs m	2,213	1,827	-17.4
Fixed Assets	Rs m	3,429	3,181	-7.2
Total Assets	Rs m	5,642	5,008	-11.2

FUTURE MARKET Cash Flow Statement Analysis

• FUTURE MARKET's cash flow from operating activities (CFO) during FY22 stood at Rs -352 million, an improvement of 18.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 13 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 378 million, an improvement of 203% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 38 million from the Rs 6 million net cash flows seen during FY21.

FUTURE MARKET Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-297	-352	-
Cash Flow from Investing Activities	Rs m	669	13	-98.1%
Cash Flow from Financing Activities	Rs m	-366	378	-
Net Cash Flow	Rs m	6	38	539.4%

Current Valuations for FUTURE MARKET

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.7, an improvement from the EPS of Rs -5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4.6, stands at -1.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -9.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	12.0	14.8
TTM Earnings per share	Rs	-5.3	-4.7
Diluted earnings per share	Rs	-5.3	-4.7
Price to Cash Flow	x	8.2	-9.9
TTM P/E ratio	x	-2.3	-1.0
Price / Book Value ratio	x	1.1	1.9
Market Cap	Rs m	1,187	815
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FUTURE MARKET

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY22, from 0.6x during FY21. 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 0.3x during FY22, from -0.7x during FY21. 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 declined and down at -64.2% during FY22, from -27.3% during FY22. 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 4.9% during FY22, from -14.3% during FY21. 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 -1.1% during FY22, from -1.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.6	0.7
Debtors’ Days	Days	1,401	747
Interest coverage	x	-0.7	0.3
Debt to equity ratio	x	0.0	2.4
Return on assets	%	-1.4	-1.1
Return on equity	%	-27.3	-64.2
Return on capital employed	%	-14.3	4.9

To see how FUTURE MARKET has performed over the last 5 years, please visit here.

FUTURE MARKET Share Price Performance

Over the last one year, FUTURE MARKET share price has moved down from Rs 8.4 to Rs 4.6, registering a loss of Rs 3.7 or around 44.8%.

Overall, the S&P BSE SENSEX is up 2.3% over the year.

(To know more, check out historical annual results for FUTURE MARKET and quarterly results for FUTURE MARKET)

Read: Latest Annual Report Analysis of FUTURE MARKET