LOVABLE LINGERIE 2022-23 Annual Report Analysis

Thu, 21 Sep

LOVABLE LINGERIE 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.

LOVABLE LINGERIE Income Statement Analysis

• Operating income during the year fell 1.8% 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 stood at 3.8% in FY23 as against 3.3% in FY22.
• Depreciation charges increased by 18.1% and finance costs increased by 57.2% YoY, respectively.
• Other income grew by 10.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 5.9% in FY22 to 0.1% in FY23.

LOVABLE LINGERIE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	972	955	-1.8%
Other income	Rs m	55	61	10.5%
Total Revenues	Rs m	1,027	1,016	-1.1%
Gross profit	Rs m	33	-37	NA
Depreciation	Rs m	17	20	18.1%
Interest	Rs m	3	5	57.2%
Profit before tax	Rs m	68	0	NA
Tax	Rs m	11	0	-96.5%
Profit after tax	Rs m	57	-1	NA
Gross profit margin	%	3.3	-3.8
Effective tax rate	%	15.9	-111.8
Net profit margin	%	5.9	-0.1

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LOVABLE LINGERIE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 256 million as compared to Rs 181 million in FY22, thereby witnessing an increase of 41.4%.
• Current assets rose 18% and stood at Rs 924 million, while fixed assets fell 3% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 5%.

LOVABLE LINGERIE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,724	1,718	-0.4
Current Liabilities	Rs m	181	256	41.4
Long-term Debt	Rs m	1	0	-100.0
Total Liabilities	Rs m	2,054	2,153	4.8
Current assets	Rs m	786	924	17.5
Fixed Assets	Rs m	1,267	1,229	-3.0
Total Assets	Rs m	2,054	2,153	4.8

LOVABLE LINGERIE Cash Flow Statement Analysis

• LOVABLE LINGERIE's cash flow from operating activities (CFO) during FY23 stood at Rs -58 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 39 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 26 million, an improvement of 274% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 million from the Rs -5 million net cash flows seen during FY22.

LOVABLE LINGERIE 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	11	-58	-
Cash Flow from Investing Activities	Rs m	-24	39	-
Cash Flow from Financing Activities	Rs m	7	26	274.3%
Net Cash Flow	Rs m	-5	7	-

Current Valuations for LOVABLE LINGERIE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 130.4, stands at 656.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 104.4 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	65.7	64.5
TTM Earnings per share	Rs	3.9	0.0
Diluted earnings per share	Rs	3.9	0.0
Price to Cash Flow	x	27.5	104.4
TTM P/E ratio	x	35.5	656.4
Price / Book Value ratio	x	1.3	1.1
Market Cap	Rs m	2,191	1,966
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for LOVABLE LINGERIE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.6x during FY23, from 4.3x 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 deteriorated and stood at 0.9x during FY23, from 22.2x 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 declined and down at 0.0% during FY23, from 3.3% 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 declined and down at 0.3% during FY23, from 4.1% 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 declined and down at 0.2% during FY23, from 2.9% 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	4.3	3.6
Debtors’ Days	Days	847	723
Interest coverage	x	22.2	0.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.9	0.2
Return on equity	%	3.3	0.0
Return on capital employed	%	4.1	0.3

To see how LOVABLE LINGERIE has performed over the last 5 years, please visit here.

LOVABLE LINGERIE Share Price Performance

Over the last one year, LOVABLE LINGERIE share price has moved down from Rs 162.1 to Rs 130.4, registering a loss of Rs 31.7 or around 19.6%.

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

(To know more, check out historical annual results for LOVABLE LINGERIE and quarterly results for LOVABLE LINGERIE)