SHOPPERS STOP 2020-21 Annual Report Analysis

Wed, 31 Mar

SHOPPERS STOP 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.

SHOPPERS STOP Income Statement Analysis

• Operating income during the year fell 49.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 90.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.2% in FY21 as against 16.3% in FY20.
• Depreciation charges decreased by 12.9% and finance costs increased by 5.6% YoY, respectively.
• Other income grew by 550.0% YoY.
• Net profit for the year grew by 88.1% YoY.
• Net profit margins during the year declined from 4.1% in FY20 to 15.3% in FY21.

SHOPPERS STOP Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	34,639	17,490	-49.5%
Other income	Rs m	345	2,242	550.0%
Total Revenues	Rs m	34,984	19,732	-43.6%
Gross profit	Rs m	5,660	554	-90.2%
Depreciation	Rs m	4,504	3,923	-12.9%
Interest	Rs m	2,218	2,342	5.6%
Profit before tax	Rs m	-716	-3,469	384.3%
Tax	Rs m	704	-797	-213.2%
Profit after tax	Rs m	-1,420	-2,672	88.1%
Gross profit margin	%	16.3	3.2
Effective tax rate	%	-98.3	23.0
Net profit margin	%	-4.1	-15.3

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SHOPPERS STOP Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 17 billion as compared to Rs 19 billion in FY20, thereby witnessing an decrease of -14.4%.
• Long-term debt stood at Rs 956 million as compared to Rs 2 million during FY20, a growth of 43340.9%.
• Current assets fell 20% and stood at Rs 13 billion, while fixed assets fell 12% and stood at Rs 19 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 32 billion as against Rs 38 billion during FY20, thereby witnessing a fall of 15%.

SHOPPERS STOP Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	659	1,186	80.0
Current Liabilities	Rs m	19,362	16,570	-14.4
Long-term Debt	Rs m	2	956	43,340.9
Total Liabilities	Rs m	38,168	32,300	-15.4
Current assets	Rs m	16,744	13,407	-19.9
Fixed Assets	Rs m	21,424	18,893	-11.8
Total Assets	Rs m	38,168	32,300	-15.4

SHOPPERS STOP Cash Flow Statement Analysis

• SHOPPERS STOP's cash flow from operating activities (CFO) during FY21 stood at Rs -30 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -236 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 139% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs -1 billion net cash flows seen during FY20.

SHOPPERS STOP 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	5,761	-30	-
Cash Flow from Investing Activities	Rs m	-2,842	-236	-
Cash Flow from Financing Activities	Rs m	-4,332	1,669	-
Net Cash Flow	Rs m	-1,413	1,404	-

Current Valuations for SHOPPERS STOP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -24.4, an decline from the EPS of Rs -16.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 215.0, stands at -8.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.9 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.5 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	393.7	159.9
TTM Earnings per share	Rs	-16.1	-24.4
Diluted earnings per share	Rs	-13.0	-24.4
Price to Cash Flow	x	6.9	17.5
TTM P/E ratio	x	-14.9	-8.8
Price / Book Value ratio	x	45.6	18.5
Market Cap	Rs m	30,011	21,924
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHOPPERS STOP

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY21, from 0.9x 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 -0.5x during FY21, from 0.7x 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 -225.3% during FY21, from -215.6% 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 -52.6% during FY21, from 227.2% 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 -1.0% during FY21, from 2.1% 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	0.9	0.8
Debtors’ Days	Days	0	1
Interest coverage	x	0.7	-0.5
Debt to equity ratio	x	0.0	0.8
Return on assets	%	2.1	-1.0
Return on equity	%	-215.6	-225.3
Return on capital employed	%	227.2	-52.6

To see how SHOPPERS STOP has performed over the last 5 years, please visit here.

SHOPPERS STOP Share Price Performance

Over the last one year, SHOPPERS STOP share price has moved up from Rs 193.5 to Rs 215.0, registering a gain of Rs 21.6 or around 11.1%.

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

(To know more, check out historical annual results for SHOPPERS STOP and quarterly results for SHOPPERS STOP)

Read: Latest Annual Report Analysis of SHOPPERS STOP