AVENUE SUPERMARTS 2020-21 Annual Report Analysis

Wed, 31 Mar

AVENUE SUPERMARTS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

AVENUE SUPERMARTS Income Statement Analysis

• Operating income during the year fell 2.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.0% in FY21 as against 9.5% in FY20.
• Depreciation charges increased by 10.6% and finance costs decreased by 39.7% YoY, respectively.
• Other income grew by 227.1% YoY.
• Net profit for the year declined by 15.5% YoY.
• Net profit margins during the year declined from 5.8% in FY20 to 5.0% in FY21.

AVENUE SUPERMARTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	224,923	219,033	-2.6%
Other income	Rs m	600	1,962	227.1%
Total Revenues	Rs m	225,523	220,995	-2.0%
Gross profit	Rs m	21,283	17,431	-18.1%
Depreciation	Rs m	3,744	4,142	10.6%
Interest	Rs m	691	417	-39.7%
Profit before tax	Rs m	17,448	14,835	-15.0%
Tax	Rs m	4,438	3,840	-13.5%
Profit after tax	Rs m	13,010	10,994	-15.5%
Gross profit margin	%	9.5	8.0
Effective tax rate	%	25.4	25.9
Net profit margin	%	5.8	5.0

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AVENUE SUPERMARTS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 11 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 52.4%.
• Current assets rose 73% and stood at Rs 41 billion, while fixed assets fell 1% and stood at Rs 96 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 137 billion as against Rs 121 billion during FY20, thereby witnessing a growth of 13%.

AVENUE SUPERMARTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	110,531	121,507	9.9
Current Liabilities	Rs m	7,258	11,058	52.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	120,762	136,551	13.1
Current assets	Rs m	23,477	40,611	73.0
Fixed Assets	Rs m	97,285	95,939	-1.4
Total Assets	Rs m	120,762	136,551	13.1

AVENUE SUPERMARTS Cash Flow Statement Analysis

• AVENUE SUPERMARTS 's cash flow from operating activities (CFO) during FY21 stood at Rs 14 billion, an improvement of 7.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 856 million from the Rs -190 million net cash flows seen during FY20.

AVENUE SUPERMARTS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	12,801	13,751	7.4%
Cash Flow from Investing Activities	Rs m	-46,566	-11,100	-
Cash Flow from Financing Activities	Rs m	33,574	-1,795	-
Net Cash Flow	Rs m	-190	856	-

Current Valuations for AVENUE SUPERMARTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.0, an decline from the EPS of Rs 20.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,854.1, stands at 168.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.2 times, while the price to sales ratio stands at 8.4 times.
• The company's price to cash flow (P/CF) ratio stood at 111.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	347.2	338.1
TTM Earnings per share	Rs	20.1	17.0
Diluted earnings per share	Rs	20.1	17.0
Price to Cash Flow	x	85.1	111.9
TTM P/E ratio	x	109.6	168.2
Price / Book Value ratio	x	11.1	13.9
Market Cap	Rs m	1,225,897	1,693,283
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AVENUE SUPERMARTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY21, from 3.2x during FY20. 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 36.6x during FY21, from 26.2x during FY20. 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 9.0% during FY21, from 11.8% during FY21. 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 declined and down at 12.6% during FY21, from 16.4% during FY20. 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 declined and down at 8.4% during FY21, from 11.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	3.2	3.7
Debtors’ Days	Days	0	0
Interest coverage	x	26.2	36.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.3	8.4
Return on equity	%	11.8	9.0
Return on capital employed	%	16.4	12.6

To see how AVENUE SUPERMARTS has performed over the last 5 years, please visit here.

AVENUE SUPERMARTS Share Price Performance

Over the last one year, AVENUE SUPERMARTS share price has moved up from Rs 2,200.7 to Rs 2,854.1, registering a gain of Rs 653.4 or around 29.7%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for AVENUE SUPERMARTS and quarterly results for AVENUE SUPERMARTS )

Read: Latest Annual Report Analysis of AVENUE SUPERMARTS