CANTABIL RETAIL 2023-24 Annual Report Analysis

Tue, 27 Aug

CANTABIL RETAIL has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

CANTABIL RETAIL Income Statement Analysis

• Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.9% in FY24 as against 30.1% in FY23.
• Depreciation charges increased by 16.4% and finance costs increased by 11.7% YoY, respectively.
• Other income grew by 6.1% YoY.
• Net profit for the year declined by 7.5% YoY.
• Net profit margins during the year declined from 12.2% in FY23 to 10.1% in FY24.

CANTABIL RETAIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,528	6,165	11.5%
Other income	Rs m	44	47	6.1%
Total Revenues	Rs m	5,572	6,212	11.5%
Gross profit	Rs m	1,666	1,659	-0.4%
Depreciation	Rs m	535	624	16.4%
Interest	Rs m	282	314	11.7%
Profit before tax	Rs m	893	768	-14.0%
Tax	Rs m	220	146	-33.9%
Profit after tax	Rs m	672	622	-7.5%
Gross profit margin	%	30.1	26.9
Effective tax rate	%	24.7	19.0
Net profit margin	%	12.2	10.1

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CANTABIL RETAIL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -3.6%.
• Current assets rose 19% and stood at Rs 3 billion, while fixed assets rose 28% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 24%.

CANTABIL RETAIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,214	3,265	47.5
Current Liabilities	Rs m	1,666	1,606	-3.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,211	7,722	24.3
Current assets	Rs m	2,636	3,140	19.1
Fixed Assets	Rs m	3,575	4,582	28.2
Total Assets	Rs m	6,211	7,722	24.3

CANTABIL RETAIL Cash Flow Statement Analysis

• CANTABIL RETAIL's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 68.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -516 million, an improvement of 51.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -414 million, an improvement of 3% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 337 million from the Rs -18 million net cash flows seen during FY23.

CANTABIL RETAIL Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	751	1,267	68.6%
Cash Flow from Investing Activities	Rs m	-341	-516	-
Cash Flow from Financing Activities	Rs m	-428	-414	-
Net Cash Flow	Rs m	-18	337	-

Current Valuations for CANTABIL RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an decline from the EPS of Rs 41.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 259.5, stands at 35.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 46.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	338.5	73.7
TTM Earnings per share	Rs	41.2	7.4
Diluted earnings per share	Rs	8.0	7.4
Price to Cash Flow	x	57.5	46.4
TTM P/E ratio	x	103.2	35.4
Price / Book Value ratio	x	8.8	17.7
Market Cap	Rs m	19,556	57,746
Dividends per share (Unadj.)	Rs	0.9	0.9

Ratio Analysis for CANTABIL RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.6x during FY23. 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 3.4x during FY24, from 4.2x during FY23. 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 19.1% during FY24, from 30.4% during FY24. 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 33.2% during FY24, from 53.1% during FY23. 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 12.1% during FY24, from 15.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.6	2.0
Debtors’ Days	Days	78	108
Interest coverage	x	4.2	3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.4	12.1
Return on equity	%	30.4	19.1
Return on capital employed	%	53.1	33.2

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

CANTABIL RETAIL Share Price Performance

Over the last one year, CANTABIL RETAIL share price has moved down from Rs 1,015.7 to Rs 259.5, registering a loss of Rs 756.2 or around 74.4%.

Overall, the S&P BSE SENSEX is up 25.1% over the year.

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