SPENCERS RETAIL 2020-21 Annual Report Analysis

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SPENCERS RETAIL 2020-21 Annual Report Analysis
Thu, 18 Nov

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 7.2% 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 -7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 110.0, stands at -8.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at -33.4 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 118.8 -33.4
TTM P/E ratio x -7.5 -8.5
Price / Book Value ratio x 3.2 4.3
Market Cap Rs m 8,749 9,915
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 up from Rs 75.0 to Rs 110.0, registering a gain of Rs 35.1 or around 46.8%.

Overall, the S&P BSE SENSEX is up 35.4% over the year.

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

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