ADITYA BIRLA FASHION & RETAIL 2022-23 Annual Report Analysis

Thu, 21 Sep

ADITYA BIRLA FASHION & RETAIL 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.

ADITYA BIRLA FASHION & RETAIL Income Statement Analysis

• Operating income during the year rose 52.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.6% in FY23 as against 14.0% in FY22.
• Depreciation charges increased by 23.1% and finance costs increased by 37.7% YoY, respectively.
• Other income grew by 15.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.5% in FY22 to 0.5% in FY23.

ADITYA BIRLA FASHION & RETAIL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	81,362	124,179	52.6%
Other income	Rs m	1,006	1,165	15.8%
Total Revenues	Rs m	82,368	125,344	52.2%
Gross profit	Rs m	11,408	15,641	37.1%
Depreciation	Rs m	9,970	12,270	23.1%
Interest	Rs m	3,892	5,361	37.7%
Profit before tax	Rs m	-1,449	-824	NA
Tax	Rs m	-266	-230	NA
Profit after tax	Rs m	-1,184	-595	NA
Gross profit margin	%	14.0	12.6
Effective tax rate	%	18.3	27.9
Net profit margin	%	-1.5	-0.5

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ADITYA BIRLA FASHION & RETAIL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 71 billion as compared to Rs 58 billion in FY22, thereby witnessing an increase of 22.5%.
• Long-term debt stood at Rs 15 billion as compared to Rs 8 billion during FY22, a growth of 93.8%.
• Current assets rose 34% and stood at Rs 72 billion, while fixed assets rose 41% and stood at Rs 95 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 166 billion as against Rs 120 billion during FY22, thereby witnessing a growth of 38%.

ADITYA BIRLA FASHION & RETAIL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	27,132	28,009	3.2
Current Liabilities	Rs m	57,880	70,875	22.5
Long-term Debt	Rs m	7,780	15,076	93.8
Total Liabilities	Rs m	120,261	166,328	38.3
Current assets	Rs m	53,345	71,701	34.4
Fixed Assets	Rs m	66,916	94,627	41.4
Total Assets	Rs m	120,261	166,328	38.3

ADITYA BIRLA FASHION & RETAIL Cash Flow Statement Analysis

• ADITYA BIRLA FASHION & RETAIL's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 3 billion, an improvement of 162% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 6 billion from the Rs -1 billion net cash flows seen during FY22.

ADITYA BIRLA FASHION & RETAIL 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	9,505	6,362	-33.1%
Cash Flow from Investing Activities	Rs m	-5,528	-3,872	-
Cash Flow from Financing Activities	Rs m	-5,256	3,255	-
Net Cash Flow	Rs m	-1,279	5,745	-

Current Valuations for ADITYA BIRLA FASHION & RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.6, an improvement from the EPS of Rs -1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 221.3, stands at -65.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 22.7 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	86.7	130.9
TTM Earnings per share	Rs	-1.3	-0.6
Diluted earnings per share	Rs	-1.2	-0.6
Price to Cash Flow	x	32.6	22.7
TTM P/E ratio	x	-237.5	-65.2
Price / Book Value ratio	x	8.3	9.5
Market Cap	Rs m	226,061	265,472
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 1.0x during FY23, from 0.9x 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 improved and stood at 0.8x during FY23, from 0.6x 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 improved and stood at -2.1% during FY23, from -4.4% 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 improved and stood at 10.5% during FY23, from 7.0% 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 improved and stood at 2.9% during FY23, from 2.3% 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	0.9	1.0
Debtors’ Days	Days	3	3
Interest coverage	x	0.6	0.8
Debt to equity ratio	x	0.3	0.5
Return on assets	%	2.3	2.9
Return on equity	%	-4.4	-2.1
Return on capital employed	%	7.0	10.5

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 down from Rs 341.8 to Rs 221.3, registering a loss of Rs 120.5 or around 35.2%.

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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