CANTABIL RETAIL 2022-23 Annual Report Analysis

Thu, 21 Sep

CANTABIL RETAIL 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.

CANTABIL RETAIL Income Statement Analysis

• Operating income during the year rose 44.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 48.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.0% in FY23 as against 29.1% in FY22.
• Depreciation charges increased by 21.3% and finance costs increased by 16.9% YoY, respectively.
• Other income declined by 71.5% YoY.
• Net profit for the year grew by 76.7% YoY.
• Net profit margins during the year grew from 9.9% in FY22 to 12.2% in FY23.

CANTABIL RETAIL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,832	5,517	44.0%
Other income	Rs m	155	44	-71.5%
Total Revenues	Rs m	3,987	5,561	39.5%
Gross profit	Rs m	1,115	1,655	48.5%
Depreciation	Rs m	433	525	21.3%
Interest	Rs m	241	282	16.9%
Profit before tax	Rs m	596	893	49.8%
Tax	Rs m	215	220	2.4%
Profit after tax	Rs m	381	672	76.7%
Gross profit margin	%	29.1	30.0
Effective tax rate	%	36.1	24.7
Net profit margin	%	9.9	12.2

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CANTABIL RETAIL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 40.4%.
• Current assets rose 50% and stood at Rs 3 billion, while fixed assets rose 11% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 25%.

CANTABIL RETAIL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,601	2,214	38.3
Current Liabilities	Rs m	1,169	1,642	40.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,965	6,188	24.6
Current assets	Rs m	1,756	2,627	49.7
Fixed Assets	Rs m	3,210	3,560	10.9
Total Assets	Rs m	4,965	6,188	24.6

CANTABIL RETAIL Cash Flow Statement Analysis

• CANTABIL RETAIL's cash flow from operating activities (CFO) during FY23 stood at Rs 751 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -341 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -428 million, an improvement of 21% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -18 million from the Rs -51 million net cash flows seen during FY22.

CANTABIL RETAIL 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	903	751	-16.8%
Cash Flow from Investing Activities	Rs m	-410	-341	-
Cash Flow from Financing Activities	Rs m	-544	-428	-
Net Cash Flow	Rs m	-51	-18	-

Current Valuations for CANTABIL RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.2, an improvement from the EPS of Rs 23.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,093.6, stands at 27.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.1 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 16.3 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	234.7	337.9
TTM Earnings per share	Rs	23.3	41.2
Diluted earnings per share	Rs	23.3	41.2
Price to Cash Flow	x	18.4	16.3
TTM P/E ratio	x	39.4	27.3
Price / Book Value ratio	x	6.7	8.8
Market Cap	Rs m	10,674	19,556
Dividends per share (Unadj.)	Rs	2.5	4.5

Ratio Analysis for CANTABIL RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.5x 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 4.2x during FY23, from 3.5x 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 30.4% during FY23, from 23.8% 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 53.1% during FY23, from 52.3% 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 15.4% during FY23, from 12.5% 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	1.5	1.6
Debtors’ Days	Days	36	63
Interest coverage	x	3.5	4.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.5	15.4
Return on equity	%	23.8	30.4
Return on capital employed	%	52.3	53.1

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 down from Rs 1,460.1 to Rs 1,093.6, registering a loss of Rs 366.5 or around 25.1%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

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