ADITYA BIRLA FASHION & RETAIL 2021-22 Annual Report Analysis

Sun, 21 Aug

ADITYA BIRLA FASHION & RETAIL 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.

ADITYA BIRLA FASHION & RETAIL Income Statement Analysis

• Operating income during the year rose 55.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 95.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY22 as against 11.1% in FY21.
• Depreciation charges increased by 3.6% and finance costs decreased by 26.6% YoY, respectively.
• Other income grew by 37.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 14.0% in FY21 to 1.5% in FY22.

ADITYA BIRLA FASHION & RETAIL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	52,489	81,362	55.0%
Other income	Rs m	734	1,006	37.0%
Total Revenues	Rs m	53,223	82,368	54.8%
Gross profit	Rs m	5,822	11,384	95.5%
Depreciation	Rs m	9,628	9,970	3.6%
Interest	Rs m	5,301	3,892	-26.6%
Profit before tax	Rs m	-8,372	-1,473	NA
Tax	Rs m	-1,015	-266	NA
Profit after tax	Rs m	-7,357	-1,207	NA
Gross profit margin	%	11.1	14.0
Effective tax rate	%	12.1	18.0
Net profit margin	%	-14.0	-1.5

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ADITYA BIRLA FASHION & RETAIL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 58 billion as compared to Rs 41 billion in FY21, thereby witnessing an increase of 41.1%.
• Long-term debt down at Rs 8 billion as compared to Rs 8 billion during FY21, a fall of 4.5%.
• Current assets rose 41% and stood at Rs 53 billion, while fixed assets rose 9% and stood at Rs 67 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 120 billion as against Rs 99 billion during FY21, thereby witnessing a growth of 21%.

ADITYA BIRLA FASHION & RETAIL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	25,961	27,132	4.5
Current Liabilities	Rs m	41,022	57,880	41.1
Long-term Debt	Rs m	8,144	7,780	-4.5
Total Liabilities	Rs m	99,270	120,261	21.1
Current assets	Rs m	37,801	53,345	41.1
Fixed Assets	Rs m	61,469	66,916	8.9
Total Assets	Rs m	99,270	120,261	21.1

ADITYA BIRLA FASHION & RETAIL Cash Flow Statement Analysis

• ADITYA BIRLA FASHION & RETAIL's cash flow from operating activities (CFO) during FY22 stood at Rs 10 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 billion from the Rs -207 million net cash flows seen during FY21.

ADITYA BIRLA FASHION & RETAIL 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	11,038	9,505	-13.9%
Cash Flow from Investing Activities	Rs m	-8,552	-5,515	-
Cash Flow from Financing Activities	Rs m	-2,693	-5,270	-
Net Cash Flow	Rs m	-207	-1,279	-

Current Valuations for ADITYA BIRLA FASHION & RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.3, an improvement from the EPS of Rs -7.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 284.1, stands at 82.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.8 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 25.8 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	56.0	86.7
TTM Earnings per share	Rs	-7.8	-1.3
Diluted earnings per share	Rs	-7.8	-1.3
Price to Cash Flow	x	83.2	25.8
TTM P/E ratio	x	-25.7	82.0
Price / Book Value ratio	x	5.8	8.3
Market Cap	Rs m	150,286	226,061
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADITYA BIRLA FASHION & RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY22, from 0.9x 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 improved and stood at 0.6x during FY22, from -0.6x 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 improved and stood at -4.4% during FY22, from -28.3% 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 improved and stood at 6.9% during FY22, from -9.0% 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 improved and stood at 2.2% during FY22, from -2.1% 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	0.9	0.9
Debtors’ Days	Days	4	3
Interest coverage	x	-0.6	0.6
Debt to equity ratio	x	0.3	0.3
Return on assets	%	-2.1	2.2
Return on equity	%	-28.3	-4.4
Return on capital employed	%	-9.0	6.9

To see how ADITYA BIRLA FASHION & RETAIL has performed over the last 5 years, please visit here.

ADITYA BIRLA FASHION & RETAIL Share Price Performance

Over the last one year, ADITYA BIRLA FASHION & RETAIL share price has moved up from Rs 200.1 to Rs 284.1, registering a gain of Rs 84.0 or around 42.0%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for ADITYA BIRLA FASHION & RETAIL and quarterly results for ADITYA BIRLA FASHION & RETAIL)

Read: Latest Annual Report Analysis of ADITYA BIRLA FASHION & RETAIL