LIBERTY SHOE 2020-21 Annual Report Analysis

Wed, 31 Mar

LIBERTY SHOE 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.

LIBERTY SHOE Income Statement Analysis

• Operating income during the year fell 29.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY21 as against 9.9% in FY20.
• Depreciation charges increased by 2.8% and finance costs increased by 0.7% YoY, respectively.
• Other income declined by 4.2% YoY.
• Net profit for the year declined by 97.6% YoY.
• Net profit margins during the year declined from 1.6% in FY20 to 0.1% in FY21.

LIBERTY SHOE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,521	4,581	-29.8%
Other income	Rs m	5	4	-4.2%
Total Revenues	Rs m	6,525	4,585	-29.7%
Gross profit	Rs m	646	508	-21.5%
Depreciation	Rs m	335	344	2.8%
Interest	Rs m	143	144	0.7%
Profit before tax	Rs m	173	24	-86.3%
Tax	Rs m	67	21	-68.4%
Profit after tax	Rs m	106	3	-97.6%
Gross profit margin	%	9.9	11.1
Effective tax rate	%	38.7	89.4
Net profit margin	%	1.6	0.1

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LIBERTY SHOE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -34.2%.
• Long-term debt stood at Rs 138 million as compared to Rs 22 million during FY20, a growth of 523.7%.
• Current assets fell 22% and stood at Rs 4 billion, while fixed assets fell 14% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 6 billion during FY20, thereby witnessing a fall of 19%.

LIBERTY SHOE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,861	1,864	0.1
Current Liabilities	Rs m	3,397	2,234	-34.2
Long-term Debt	Rs m	22	138	523.7
Total Liabilities	Rs m	6,420	5,174	-19.4
Current assets	Rs m	4,514	3,530	-21.8
Fixed Assets	Rs m	1,906	1,644	-13.7
Total Assets	Rs m	6,420	5,174	-19.4

LIBERTY SHOE Cash Flow Statement Analysis

• LIBERTY SHOE's cash flow from operating activities (CFO) during FY21 stood at Rs 336 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -91 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -241 million, an improvement of 35% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 11 million from the Rs -9 million net cash flows seen during FY20.

LIBERTY SHOE 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	1,529	336	-78.0%
Cash Flow from Investing Activities	Rs m	-1,187	-91	-
Cash Flow from Financing Activities	Rs m	-368	-241	-
Net Cash Flow	Rs m	-9	11	-

Current Valuations for LIBERTY SHOE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 127.3, stands at 857.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 6.8 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	382.7	268.8
TTM Earnings per share	Rs	6.2	0.1
Diluted earnings per share	Rs	6.2	0.1
Price to Cash Flow	x	4.0	6.8
TTM P/E ratio	x	16.5	857.1
Price / Book Value ratio	x	1.0	1.3
Market Cap	Rs m	1,934	2,365
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LIBERTY SHOE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.3x 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 deteriorated and stood at 1.2x during FY21, from 2.2x 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 0.1% during FY21, from 5.7% 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 8.4% during FY21, from 16.8% 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 2.8% during FY21, from 3.9% 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	1.3	1.6
Debtors’ Days	Days	113,459,636	86,531,458
Interest coverage	x	2.2	1.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	3.9	2.8
Return on equity	%	5.7	0.1
Return on capital employed	%	16.8	8.4

To see how LIBERTY SHOE has performed over the last 5 years, please visit here.

LIBERTY SHOE Share Price Performance

Over the last one year, LIBERTY SHOE share price has moved up from Rs 102.4 to Rs 127.3, registering a gain of Rs 24.9 or around 24.3%.

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

(To know more, check out historical annual results for LIBERTY SHOE and quarterly results for LIBERTY SHOE)

Read: Latest Annual Report Analysis of LIBERTY SHOE