V-MART RETAIL 2022-23 Annual Report Analysis

Mon, 21 Aug

V-MART RETAIL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

V-MART RETAIL Income Statement Analysis

• Operating income during the year rose 47.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.2% in FY23 as against 12.6% in FY22.
• Depreciation charges increased by 37.7% and finance costs increased by 51.9% YoY, respectively.
• Other income grew by 7.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.7% in FY22 to 0.3% in FY23.

V-MART RETAIL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	16,662	24,648	47.9%
Other income	Rs m	140	150	7.2%
Total Revenues	Rs m	16,801	24,798	47.6%
Gross profit	Rs m	2,091	2,766	32.2%
Depreciation	Rs m	1,307	1,800	37.7%
Interest	Rs m	820	1,246	51.9%
Profit before tax	Rs m	104	-130	NA
Tax	Rs m	-12	-52	NA
Profit after tax	Rs m	116	-78	NA
Gross profit margin	%	12.6	11.2
Effective tax rate	%	-12.0	39.7
Net profit margin	%	0.7	-0.3

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V-MART RETAIL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 95.2%.
• Current assets rose 18% and stood at Rs 11 billion, while fixed assets rose 40% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 27 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 31%.

V-MART RETAIL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,390	8,362	-0.3
Current Liabilities	Rs m	3,961	7,733	95.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,609	26,895	30.5
Current assets	Rs m	8,983	10,577	17.7
Fixed Assets	Rs m	11,625	16,317	40.4
Total Assets	Rs m	20,609	26,895	30.5

V-MART RETAIL Cash Flow Statement Analysis

• V-MART RETAIL's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -374 million, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -152 million from the Rs 80 million net cash flows seen during FY22.

V-MART RETAIL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-113	1,808	-
Cash Flow from Investing Activities	Rs m	1,237	-1,586	-
Cash Flow from Financing Activities	Rs m	-1,045	-374	-
Net Cash Flow	Rs m	80	-152	-

Current Valuations for V-MART RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.0, an decline from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,166.3, stands at -85.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 35.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	843.6	1,246.8
TTM Earnings per share	Rs	5.9	-4.0
Diluted earnings per share	Rs	5.9	-4.0
Price to Cash Flow	x	55.2	35.1
TTM P/E ratio	x	674.8	-85.3
Price / Book Value ratio	x	8.4	7.2
Market Cap	Rs m	70,267	60,421
Dividends per share (Unadj.)	Rs	0.8	0.0

Ratio Analysis for V-MART RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 2.3x during FY22. 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 0.9x during FY23, from 1.1x during FY22. 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 -0.9% during FY23, from 1.4% during FY23. 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 13.3% during FY23, from 11.0% during FY22. 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 4.3% during FY23, from 4.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.3	1.4
Debtors’ Days	Days	0	0
Interest coverage	x	1.1	0.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.5	4.3
Return on equity	%	1.4	-0.9
Return on capital employed	%	11.0	13.3

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 down from Rs 2,950.3 to Rs 2,166.3, registering a loss of Rs 784.1 or around 26.6%.

Overall, the S&P BSE SENSEX is up 8.3% over the year.

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