SPENCERS RETAIL 2020-21 Annual Report Analysis

Wed, 31 Mar

SPENCERS RETAIL 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.

SPENCERS RETAIL Income Statement Analysis

• Operating income during the year fell 8.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 86.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.4% in FY21 as against 2.4% in FY20.
• Depreciation charges decreased by 2.9% and finance costs increased by 11.5% YoY, respectively.
• Other income grew by 67.9% YoY.
• Net profit for the year grew by 25.3% YoY.
• Net profit margins during the year declined from 5.4% in FY20 to 7.4% in FY21.

SPENCERS RETAIL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	24,058	22,128	-8.0%
Other income	Rs m	318	534	67.9%
Total Revenues	Rs m	24,377	22,662	-7.0%
Gross profit	Rs m	573	79	-86.1%
Depreciation	Rs m	1,381	1,342	-2.9%
Interest	Rs m	820	913	11.5%
Profit before tax	Rs m	-1,310	-1,642	25.4%
Tax	Rs m	-2	-4	88.8%
Profit after tax	Rs m	-1,308	-1,639	25.3%
Gross profit margin	%	2.4	0.4
Effective tax rate	%	0.1	0.2
Net profit margin	%	-5.4	-7.4

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

SPENCERS RETAIL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 3.8%.
• Long-term debt down at Rs 765 million as compared to Rs 878 million during FY20, a fall of 12.8%.
• Current assets fell 10% and stood at Rs 4 billion, while fixed assets rose 1% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 16 billion during FY20, thereby witnessing a fall of 2%.

SPENCERS RETAIL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,739	1,861	-32.0
Current Liabilities	Rs m	6,375	6,620	3.8
Long-term Debt	Rs m	878	765	-12.8
Total Liabilities	Rs m	15,939	15,595	-2.2
Current assets	Rs m	4,294	3,878	-9.7
Fixed Assets	Rs m	11,645	11,717	0.6
Total Assets	Rs m	15,939	15,595	-2.2

SPENCERS RETAIL Cash Flow Statement Analysis

• SPENCERS RETAIL's cash flow from operating activities (CFO) during FY21 stood at Rs -24 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -183 million, an improvement of 163.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -33 million, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -241 million from the Rs 527 million net cash flows seen during FY20.

SPENCERS RETAIL 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	1,141	-24	-
Cash Flow from Investing Activities	Rs m	-69	-183	-
Cash Flow from Financing Activities	Rs m	-545	-33	-
Net Cash Flow	Rs m	527	-241	-

Current Valuations for SPENCERS RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -18.2, an decline from the EPS of Rs -16.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.6, stands at -3.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -26.9 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	302.5	245.5
TTM Earnings per share	Rs	-16.4	-18.2
Diluted earnings per share	Rs	-14.5	-18.2
Price to Cash Flow	x	90.8	-26.9
TTM P/E ratio	x	-5.1	-3.9
Price / Book Value ratio	x	3.2	4.3
Market Cap	Rs m	8,796	7,988
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SPENCERS RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY21, from 0.7x 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 -0.8x during FY21, from -0.6x 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 -88.0% during FY21, from -47.7% 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 -27.7% during FY21, from -13.6% 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 -4.6% during FY21, from -3.1% 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	0.7	0.6
Debtors’ Days	Days	101	49
Interest coverage	x	-0.6	-0.8
Debt to equity ratio	x	0.3	0.4
Return on assets	%	-3.1	-4.6
Return on equity	%	-47.7	-88.0
Return on capital employed	%	-13.6	-27.7

To see how SPENCERS RETAIL has performed over the last 5 years, please visit here.

SPENCERS RETAIL Share Price Performance

Over the last one year, SPENCERS RETAIL share price has moved down from Rs 74.2 to Rs 70.6, registering a loss of Rs 3.6 or around 4.9%.

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

(To know more, check out historical annual results for SPENCERS RETAIL and quarterly results for SPENCERS RETAIL)

Read: Latest Annual Report Analysis of SPENCERS RETAIL