CANTABIL RETAIL 2021-22 Annual Report Analysis

Tue, 20 Sep

CANTABIL RETAIL 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.

CANTABIL RETAIL Income Statement Analysis

• Operating income during the year rose 52.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 88.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.1% in FY22 as against 23.6% in FY21.
• Depreciation charges increased by 10.8% and finance costs decreased by 3.3% YoY, respectively.
• Other income declined by 9.3% YoY.
• Net profit for the year grew by 293.8% YoY.
• Net profit margins during the year grew from 3.8% in FY21 to 9.9% in FY22.

CANTABIL RETAIL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,519	3,834	52.2%
Other income	Rs m	167	152	-9.3%
Total Revenues	Rs m	2,686	3,986	48.4%
Gross profit	Rs m	594	1,117	88.0%
Depreciation	Rs m	391	433	10.8%
Interest	Rs m	248	240	-3.3%
Profit before tax	Rs m	123	596	386.1%
Tax	Rs m	26	215	730.3%
Profit after tax	Rs m	97	381	293.8%
Gross profit margin	%	23.6	29.1
Effective tax rate	%	21.2	36.1
Net profit margin	%	3.8	9.9

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CANTABIL RETAIL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 951 million in FY21, thereby witnessing an increase of 22.9%.
• Current assets rose 18% and stood at Rs 2 billion, while fixed assets rose 22% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 5 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 21%.

CANTABIL RETAIL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,240	1,601	29.1
Current Liabilities	Rs m	951	1,169	22.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,116	4,965	20.6
Current assets	Rs m	1,485	1,756	18.2
Fixed Assets	Rs m	2,631	3,210	22.0
Total Assets	Rs m	4,116	4,965	20.6

CANTABIL RETAIL Cash Flow Statement Analysis

• CANTABIL RETAIL's cash flow from operating activities (CFO) during FY22 stood at Rs 903 million, an improvement of 35.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -410 million, an improvement of 481.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -544 million, an improvement of 2% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -51 million from the Rs 43 million net cash flows seen during FY21.

CANTABIL RETAIL 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	665	903	35.7%
Cash Flow from Investing Activities	Rs m	-70	-410	-
Cash Flow from Financing Activities	Rs m	-552	-544	-
Net Cash Flow	Rs m	43	-51	-

Current Valuations for CANTABIL RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.3, an improvement from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,444.0, stands at 43.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.7 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	154.2	234.8
TTM Earnings per share	Rs	5.9	23.3
Diluted earnings per share	Rs	5.9	23.3
Price to Cash Flow	x	12.7	13.1
TTM P/E ratio	x	63.9	43.9
Price / Book Value ratio	x	4.2	6.7
Market Cap	Rs m	5,270	10,674
Dividends per share (Unadj.)	Rs	1.0	2.5

Ratio Analysis for CANTABIL RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY22, from 1.6x 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 3.5x during FY22, from 1.5x 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 improved and stood at 23.8% during FY22, from 7.8% 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 52.2% during FY22, from 29.9% 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 12.5% during FY22, from 8.4% 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	1.6	1.5
Debtors’ Days	Days	56	36
Interest coverage	x	1.5	3.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.4	12.5
Return on equity	%	7.8	23.8
Return on capital employed	%	29.9	52.2

To see how CANTABIL RETAIL has performed over the last 5 years, please visit here.

CANTABIL RETAIL Share Price Performance

Over the last one year, CANTABIL RETAIL share price has moved up from Rs 478.2 to Rs 1,444.0, registering a gain of Rs 965.9 or around 202.0%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for CANTABIL RETAIL and quarterly results for CANTABIL RETAIL)

Read: Latest Annual Report Analysis of CANTABIL RETAIL