V-MART RETAIL 2020-21 Annual Report Analysis

Wed, 31 Mar

V-MART 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.

V-MART RETAIL Income Statement Analysis

• Operating income during the year fell 35.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 38.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.6% in FY21 as against 13.2% in FY20.
• Depreciation charges increased by 9.6% and finance costs increased by 5.0% YoY, respectively.
• Other income grew by 369.6% YoY.
• Net profit for the year declined by 112.6% YoY.
• Net profit margins during the year declined from 3.0% in FY20 to 0.6% in FY21.

V-MART RETAIL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	16,620	10,755	-35.3%
Other income	Rs m	45	210	369.6%
Total Revenues	Rs m	16,665	10,965	-34.2%
Gross profit	Rs m	2,188	1,350	-38.3%
Depreciation	Rs m	939	1,030	9.6%
Interest	Rs m	598	628	5.0%
Profit before tax	Rs m	695	-97	-113.9%
Tax	Rs m	202	-35	-117.2%
Profit after tax	Rs m	493	-62	-112.6%
Gross profit margin	%	13.2	12.6
Effective tax rate	%	29.0	35.8
Net profit margin	%	3.0	-0.6

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V-MART RETAIL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -17.9%.
• Current assets rose 70% and stood at Rs 9 billion, while fixed assets rose 4% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 33%.

V-MART RETAIL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,532	8,184	80.6
Current Liabilities	Rs m	3,208	2,632	-17.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,076	16,013	32.6
Current assets	Rs m	5,176	8,819	70.4
Fixed Assets	Rs m	6,900	7,193	4.2
Total Assets	Rs m	12,076	16,013	32.6

V-MART RETAIL Cash Flow Statement Analysis

• V-MART RETAIL's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 73.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 3 billion, an improvement of 404% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 174 million from the Rs -75 million net cash flows seen during FY20.

V-MART 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	863	1,493	73.0%
Cash Flow from Investing Activities	Rs m	5	-4,188	-
Cash Flow from Financing Activities	Rs m	-943	2,869	-
Net Cash Flow	Rs m	-75	174	-

Current Valuations for V-MART RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.1, an decline from the EPS of Rs 27.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,768.3, stands at -881.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 45.6 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	915.2	545.6
TTM Earnings per share	Rs	27.2	-3.1
Diluted earnings per share	Rs	25.0	-3.1
Price to Cash Flow	x	19.5	45.6
TTM P/E ratio	x	56.5	-881.2
Price / Book Value ratio	x	8.3	5.4
Market Cap	Rs m	37,525	44,083
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for V-MART RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY21, from 1.6x 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 2.2x 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 -0.8% during FY21, from 10.9% 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 6.5% during FY21, from 28.5% 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 3.5% during FY21, from 9.0% 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	1.6	3.4
Debtors’ Days	Days	0	0
Interest coverage	x	2.2	0.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.0	3.5
Return on equity	%	10.9	-0.8
Return on capital employed	%	28.5	6.5

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

V-MART RETAIL Share Price Performance

Over the last one year, V-MART RETAIL share price has moved up from Rs 1,412.5 to Rs 2,768.3, registering a gain of Rs 1,355.8 or around 96.0%.

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

(To know more, check out historical annual results for V-MART RETAIL and quarterly results for V-MART RETAIL)

Read: Latest Annual Report Analysis of V-MART RETAIL