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FUTURE CONSUMER 2021-22 Annual Report Analysis
Wed, 7 Sep

FUTURE CONSUMER 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.

FUTURE CONSUMER Income Statement Analysis

  • Operating income during the year rose 24.0% 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 24.3% in FY22 as against 29.8% in FY21.
  • Depreciation charges decreased by 11.5% and finance costs decreased by 12.6% YoY, respectively.
  • Other income declined by 2.8% YoY.
  • Net profit for the year declined by NA YoY.
  • Net profit margins during the year grew from 40.8% in FY21 to 30.6% in FY22.

FUTURE CONSUMER Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 11,845 14,688 24.0%
Other income Rs m 212 206 -2.8%
Total Revenues Rs m 12,057 14,894 23.5%
Gross profit Rs m -3,528 -3,562 NA
Depreciation Rs m 582 515 -11.5%
Interest Rs m 723 632 -12.6%
Profit before tax Rs m -4,621 -4,504 NA
Tax Rs m 212 -6 NA
Profit after tax Rs m -4,833 -4,498 NA
Gross profit margin % -29.8 -24.3
Effective tax rate % -4.6 0.1
Net profit margin % -40.8 -30.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

FUTURE CONSUMER Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 8 billion as compared to Rs 9 billion in FY21, thereby witnessing an decrease of -12.9%.
  • Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY21, a fall of 23.5%.
  • Current assets fell 52% and stood at Rs 4 billion, while fixed assets fell 11% and stood at Rs 8 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 12 billion as against Rs 18 billion during FY21, thereby witnessing a fall of 33%.

FUTURE CONSUMER Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 5,788 1,432 -75.3
 
Current Liabilities Rs m 9,318 8,114 -12.9
Long-term Debt Rs m 1,697 1,299 -23.5
Total Liabilities Rs m 18,134 12,228 -32.6
 
Current assets Rs m 9,357 4,454 -52.4
Fixed Assets Rs m 8,777 7,774 -11.4
Total Assets Rs m 18,134 12,228 -32.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FUTURE CONSUMER Cash Flow Statement Analysis

  • FUTURE CONSUMER's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion, an improvement of 25.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs 56 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -93 million from the Rs -114 million net cash flows seen during FY21.

FUTURE CONSUMER 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 951 1,190 25.1%
Cash Flow from Investing Activities Rs m -157 56 -
Cash Flow from Financing Activities Rs m -908 -1,338 -
Net Cash Flow Rs m -114 -93 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FUTURE CONSUMER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.3, an improvement from the EPS of Rs -2.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1.9, stands at -0.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at -4.1 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 6.0 7.4
TTM Earnings per share Rs -2.4 -2.3
Diluted earnings per share Rs -2.4 -2.3
Price to Cash Flow x -2.8 -4.1
TTM P/E ratio x -2.6 -0.8
Price / Book Value ratio x 4.3 11.3
Market Cap Rs m 24,749 16,186
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FUTURE CONSUMER

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY22, from 1.0x 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 deteriorated and stood at -6.1x during FY22, from -5.4x 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 declined and down at -314.1% during FY22, from -83.5% 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 declined and down at -141.8% during FY22, from -52.1% 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 declined and down at -31.6% during FY22, from -22.7% 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 1.0 0.5
Debtors’ Days Days 1,936 371
Interest coverage x -5.4 -6.1
Debt to equity ratio x 0.3 0.9
Return on assets % -22.7 -31.6
Return on equity % -83.5 -314.1
Return on capital employed % -52.1 -141.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how FUTURE CONSUMER has performed over the last 5 years, please visit here.

FUTURE CONSUMER Share Price Performance

Over the last one year, FUTURE CONSUMER share price has moved down from Rs 7.1 to Rs 1.9, registering a loss of Rs 5.2 or around 73.2%.

Overall, the S&P BSE SENSEX is up 1.3% over the year.

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

Annual Report FAQs

What is the current share price of FUTURE CONSUMER?

FUTURE CONSUMER currently trades at Rs 0.8 per share. You can check out the latest share price performance of FUTURE CONSUMER here...

What was the revenue of FUTURE CONSUMER in FY22? How does it compare to earlier years?

The revenues of FUTURE CONSUMER stood at Rs 14,894 m in FY22, which was up 23.5% compared to Rs 12,057 m reported in FY21.

FUTURE CONSUMER's revenue has fallen from Rs 30,397 m in FY18 to Rs 14,894 m in FY22.

Over the past 5 years, the revenue of FUTURE CONSUMER has grown at a CAGR of -16.3%.

What was the net profit of FUTURE CONSUMER in FY22? How does it compare to earlier years?

The net loss of FUTURE CONSUMER stood at Rs -4,498 m in FY22, which was NA compared to Rs -4,833 m reported in FY21.

This compares to a net loss of Rs -1,695 m in FY20 and a net profit of Rs 223 m in FY19.

Over the past 5 years, FUTURE CONSUMER net profit has grown at a CAGR of 165.7%.

What does the cash flow statement of FUTURE CONSUMER reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of FUTURE CONSUMER reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 1,190 m as compared to Rs 951 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs 56 m as compared to Rs -157 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -1,338 m as compared to Rs -908 m in FY21.

Here's the cash flow statement of FUTURE CONSUMER for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations-938-5543319511,190
From Investments-1,267-440-209-15756
From Financial Activity2,1681,116-206-908-1,338
Net Cashflow-37128-75-114-93

What does the Key Ratio analysis of FUTURE CONSUMER reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of FUTURE CONSUMER reveals:

  • Operating profit margins witnessed a growth and down at 24.3% in FY22 as against 29.8% in FY21.
  • Net profit margins grew from 40.8% in FY21 to 30.6% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.9 as compared to 0.3 in FY21.

Here's the ratio/financial analysis of FUTURE CONSUMER for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)1.82.6-1.0-29.8-24.3
Net Profit Margin (%)-0.30.6-4.2-40.8-30.6
Debt to Equity Ratio (x)0.30.30.20.30.9

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