FUTURE MARKET 2022-23 Annual Report Analysis

Tue, 3 Oct

FUTURE MARKET 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.

FUTURE MARKET Income Statement Analysis

• Operating income during the year rose 8.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.5% in FY23 as against 23.4% in FY22.
• Depreciation charges decreased by 4.6% and finance costs decreased by 3.9% YoY, respectively.
• Other income grew by 33.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 32.9% in FY22 to 10.1% in FY23.

FUTURE MARKET Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	853	924	8.4%
Other income	Rs m	44	59	33.6%
Total Revenues	Rs m	896	983	9.6%
Gross profit	Rs m	200	337	68.8%
Depreciation	Rs m	186	178	-4.6%
Interest	Rs m	212	204	-3.9%
Profit before tax	Rs m	-154	14	NA
Tax	Rs m	126	108	-14.4%
Profit after tax	Rs m	-280	-93	NA
Gross profit margin	%	23.4	36.5
Effective tax rate	%	-81.6	748.5
Net profit margin	%	-32.9	-10.1

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FUTURE MARKET Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 2.4%.
• Long-term debt down at Rs 821 million as compared to Rs 990 million during FY22, a fall of 17.1%.
• Current assets fell 13% and stood at Rs 2 billion, while fixed assets fell 2% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a fall of 6%.

FUTURE MARKET Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	418	328	-21.5
Current Liabilities	Rs m	2,598	2,659	2.4
Long-term Debt	Rs m	990	821	-17.1
Total Liabilities	Rs m	5,008	4,690	-6.3
Current assets	Rs m	1,827	1,587	-13.1
Fixed Assets	Rs m	3,181	3,103	-2.5
Total Assets	Rs m	5,008	4,690	-6.3

FUTURE MARKET Cash Flow Statement Analysis

• FUTURE MARKET's cash flow from operating activities (CFO) during FY23 stood at Rs 709 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -288 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -270 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 152 million from the Rs 38 million net cash flows seen during FY22.

FUTURE MARKET 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	-352	709	-
Cash Flow from Investing Activities	Rs m	13	-288	-
Cash Flow from Financing Activities	Rs m	378	-270	-
Net Cash Flow	Rs m	38	152	299.7%

Current Valuations for FUTURE MARKET

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an improvement from the EPS of Rs -4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6.0, stands at -3.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.4 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	14.8	16.1
TTM Earnings per share	Rs	-4.9	-1.6
Diluted earnings per share	Rs	-4.9	-1.6
Price to Cash Flow	x	-4.9	4.4
TTM P/E ratio	x	-1.7	-3.2
Price / Book Value ratio	x	1.9	1.1
Market Cap	Rs m	815	367
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FUTURE MARKET

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY23, from 0.7x 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 1.1x during FY23, from 0.3x 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 -28.5% during FY23, from -67.0% 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 19.0% during FY23, from 4.1% 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 2.3% during FY23, from -1.4% 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	0.7	0.6
Debtors’ Days	Days	747	698
Interest coverage	x	0.3	1.1
Debt to equity ratio	x	2.4	2.5
Return on assets	%	-1.4	2.3
Return on equity	%	-67.0	-28.5
Return on capital employed	%	4.1	19.0

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 up from Rs 4.9 to Rs 6.0, registering a gain of Rs 1.2 or around 24.1%.

Overall, the S&P BSE SENSEX is up 15.7% over the year.

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