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V2 RETAIL 2021-22 Annual Report Analysis

Mon, 26 Sep

V2 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.

V2 RETAIL Income Statement Analysis

• Operating income during the year rose 16.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.7% in FY22 as against 9.3% in FY21.
• Depreciation charges increased by 6.0% and finance costs increased by 19.2% YoY, respectively.
• Other income declined by 30.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.4% in FY21 to 1.9% in FY22.

V2 RETAIL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,386	6,292	16.8%
Other income	Rs m	230	159	-30.8%
Total Revenues	Rs m	5,616	6,451	14.9%
Gross profit	Rs m	499	670	34.2%
Depreciation	Rs m	555	588	6.0%
Interest	Rs m	327	389	19.2%
Profit before tax	Rs m	-153	-149	NA
Tax	Rs m	-24	-32	NA
Profit after tax	Rs m	-128	-117	NA
Gross profit margin	%	9.3	10.7
Effective tax rate	%	16.0	21.4
Net profit margin	%	-2.4	-1.9

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V2 RETAIL Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -7.2%.
• Long-term debt stood at Rs 56 million as compared to Rs 1 million during FY21, a growth of 4693.2%.
• Current assets fell 5% and stood at Rs 3 billion, while fixed assets fell 1% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 8 billion during FY21, thereby witnessing a fall of 3%.

V2 RETAIL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,649	2,571	-2.9
Current Liabilities	Rs m	2,320	2,153	-7.2
Long-term Debt	Rs m	1	56	4,693.2
Total Liabilities	Rs m	7,890	7,648	-3.1
Current assets	Rs m	3,608	3,424	-5.1
Fixed Assets	Rs m	4,282	4,224	-1.4
Total Assets	Rs m	7,890	7,648	-3.1

V2 RETAIL Cash Flow Statement Analysis

• V2 RETAIL's cash flow from operating activities (CFO) during FY22 stood at Rs 586 million, an improvement of 1,638.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -157 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -583 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -154 million from the Rs -386 million net cash flows seen during FY21.

V2 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	34	586	1,638.3%
Cash Flow from Investing Activities	Rs m	-203	-157	-
Cash Flow from Financing Activities	Rs m	-216	-583	-
Net Cash Flow	Rs m	-386	-154	-

Current Valuations for V2 RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.4, an improvement from the EPS of Rs -3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 109.7, stands at -118.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 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	157.9	183.0
TTM Earnings per share	Rs	-3.8	-3.4
Diluted earnings per share	Rs	-3.7	-3.4
Price to Cash Flow	x	10.1	11.1
TTM P/E ratio	x	-33.7	-118.0
Price / Book Value ratio	x	1.3	2.0
Market Cap	Rs m	3,383	5,257
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for V2 RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.6x 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 0.5x 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 -4.5% during FY22, from -4.8% 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 9.2% during FY22, from 6.6% 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 3.6% during FY22, from 2.5% 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	1.6	1.6
Debtors’ Days	Days	4	5
Interest coverage	x	0.5	0.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.5	3.6
Return on equity	%	-4.8	-4.5
Return on capital employed	%	6.6	9.2

To see how V2 RETAIL has performed over the last 5 years, please visit here.

V2 RETAIL Share Price Performance

Over the last one year, V2 RETAIL share price has moved down from Rs 153.3 to Rs 109.7, registering a loss of Rs 43.6 or around 28.4%.

Overall, the S&P BSE SENSEX is down 2.9% over the year.

(To know more, check out historical annual results for V2 RETAIL and quarterly results for V2 RETAIL)

Read: Latest Annual Report Analysis of V2 RETAIL