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COUNTRY CLUB 2022-23 Annual Report Analysis

Thu, 26 Oct

COUNTRY CLUB 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.

COUNTRY CLUB Income Statement Analysis

• Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 44.6% in FY23 as against 55.4% in FY22.
• Depreciation charges decreased by 24.0% and finance costs increased by 0.4% YoY, respectively.
• Other income grew by 193.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 76.9% in FY22 to 19.7% in FY23.

COUNTRY CLUB Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	568	642	12.9%
Other income	Rs m	245	718	193.6%
Total Revenues	Rs m	813	1,360	67.2%
Gross profit	Rs m	-315	-286	NA
Depreciation	Rs m	169	128	-24.0%
Interest	Rs m	176	177	0.4%
Profit before tax	Rs m	-415	127	NA
Tax	Rs m	22	1	-96.8%
Profit after tax	Rs m	-437	126	NA
Gross profit margin	%	-55.4	-44.6
Effective tax rate	%	-5.4	0.6
Net profit margin	%	-76.9	19.7

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COUNTRY CLUB Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -37.9%.
• Long-term debt down at Rs 531 million as compared to Rs 907 million during FY22, a fall of 41.4%.
• Current assets fell 38% and stood at Rs 454 million, while fixed assets fell 14% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 8 billion during FY22, thereby witnessing a fall of 16%.

COUNTRY CLUB Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,417	3,168	-7.3
Current Liabilities	Rs m	2,294	1,424	-37.9
Long-term Debt	Rs m	907	531	-41.4
Total Liabilities	Rs m	7,899	6,616	-16.2
Current assets	Rs m	734	454	-38.2
Fixed Assets	Rs m	7,166	6,162	-14.0
Total Assets	Rs m	7,899	6,616	-16.2

COUNTRY CLUB Cash Flow Statement Analysis

• COUNTRY CLUB's cash flow from operating activities (CFO) during FY23 stood at Rs -653 million, an improvement of 296.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 886 million, an improvement of 10.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -249 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -16 million from the Rs -17 million net cash flows seen during FY22.

COUNTRY CLUB 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	-165	-653	-
Cash Flow from Investing Activities	Rs m	800	886	10.8%
Cash Flow from Financing Activities	Rs m	-652	-249	-
Net Cash Flow	Rs m	-17	-16	-

Current Valuations for COUNTRY CLUB

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an improvement from the EPS of Rs -2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.4, stands at 10.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.0 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	3.5	3.9
TTM Earnings per share	Rs	-2.7	0.8
Diluted earnings per share	Rs	-2.7	0.8
Price to Cash Flow	x	-4.5	5.0
TTM P/E ratio	x	-2.8	10.7
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	1,146	1,276
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for COUNTRY CLUB

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY23, from 0.3x 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 -1.4x 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 4.0% during FY23, from -12.8% 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 8.2% during FY23, from -5.5% 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 4.6% during FY23, from -3.3% 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	0.3	0.3
Debtors’ Days	Days	785	577
Interest coverage	x	-1.4	1.7
Debt to equity ratio	x	0.3	0.2
Return on assets	%	-3.3	4.6
Return on equity	%	-12.8	4.0
Return on capital employed	%	-5.5	8.2

To see how COUNTRY CLUB has performed over the last 5 years, please visit here.

COUNTRY CLUB Share Price Performance

Over the last one year, COUNTRY CLUB share price has moved up from Rs 7.5 to Rs 8.4, registering a gain of Rs 0.8 or around 11.0%.

Overall, the S&P BSE SENSEX is up 5.5% over the year.

(To know more, check out historical annual results for COUNTRY CLUB and quarterly results for COUNTRY CLUB)