COFFEE DAY ENTER. 2023-24 Annual Report Analysis

Tue, 15 Oct

COFFEE DAY ENTER. 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.

COFFEE DAY ENTER. Income Statement Analysis

• Operating income during the year rose 9.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 33.4% in FY24 as against 28.0% in FY23.
• Depreciation charges decreased by 18.4% and finance costs decreased by 65.9% YoY, respectively.
• Other income declined by 0.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 45.4% in FY23 to 32.9% in FY24.

COFFEE DAY ENTER. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,537	9,353	9.6%
Other income	Rs m	1,051	1,047	-0.4%
Total Revenues	Rs m	9,588	10,400	8.5%
Gross profit	Rs m	-2,392	-3,125	NA
Depreciation	Rs m	1,612	1,315	-18.4%
Interest	Rs m	870	296	-65.9%
Profit before tax	Rs m	-3,824	-3,690	NA
Tax	Rs m	48	-615	NA
Profit after tax	Rs m	-3,872	-3,074	NA
Gross profit margin	%	-28.0	-33.4
Effective tax rate	%	-1.3	16.7
Net profit margin	%	-45.4	-32.9

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COFFEE DAY ENTER. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 17 billion as compared to Rs 21 billion in FY23, thereby witnessing an decrease of -20.2%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 22.7%.
• Current assets rose 4% and stood at Rs 37 billion, while fixed assets fell 45% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 47 billion as against Rs 55 billion during FY23, thereby witnessing a fall of 15%.

COFFEE DAY ENTER. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	32,179	28,565	-11.2
Current Liabilities	Rs m	21,039	16,786	-20.2
Long-term Debt	Rs m	1,315	1,016	-22.7
Total Liabilities	Rs m	54,718	46,659	-14.7
Current assets	Rs m	35,354	36,617	3.6
Fixed Assets	Rs m	18,260	9,987	-45.3
Total Assets	Rs m	54,718	46,659	-14.7

COFFEE DAY ENTER. Cash Flow Statement Analysis

• COFFEE DAY ENTER.'s cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 9.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 3 billion, an improvement of 172.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 2 billion net cash flows seen during FY23.

COFFEE DAY ENTER. 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	1,719	1,888	9.8%
Cash Flow from Investing Activities	Rs m	1,094	2,980	172.3%
Cash Flow from Financing Activities	Rs m	-630	-2,717	-
Net Cash Flow	Rs m	2,258	2,152	-4.7%

Current Valuations for COFFEE DAY ENTER.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -14.6, an improvement from the EPS of Rs -18.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 36.2, stands at -2.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at -6.2 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	40.4	44.3
TTM Earnings per share	Rs	-18.3	-14.6
Diluted earnings per share	Rs	-18.3	-14.6
Price to Cash Flow	x	-2.7	-6.2
TTM P/E ratio	x	-1.5	-2.2
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	10,552	10,846
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for COFFEE DAY ENTER.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 1.7x 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 -11.4x during FY24, from -3.4x 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 improved and stood at -10.8% during FY24, from -12.0% 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 -11.5% during FY24, from -8.8% 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 -6.0% during FY24, from -5.5% 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	1.7	2.2
Debtors’ Days	Days	2	2
Interest coverage	x	-3.4	-11.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-5.5	-6.0
Return on equity	%	-12.0	-10.8
Return on capital employed	%	-8.8	-11.5

To see how COFFEE DAY ENTER. has performed over the last 5 years, please visit here.

COFFEE DAY ENTER. Share Price Performance

Over the last one year, COFFEE DAY ENTER. share price has moved down from Rs 49.9 to Rs 36.2, registering a loss of Rs 13.7 or around 27.4%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

(To know more, check out historical annual results for COFFEE DAY ENTER. and quarterly results for COFFEE DAY ENTER.)