AVENUE SUPERMARTS 2021-22 Annual Report Analysis

Wed, 27 Jul

AVENUE SUPERMARTS 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.

AVENUE SUPERMARTS Income Statement Analysis

• Operating income during the year rose 28.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.9% in FY22 as against 8.0% in FY21.
• Depreciation charges increased by 20.3% and finance costs increased by 29.1% YoY, respectively.
• Other income declined by 40.1% YoY.
• Net profit for the year grew by 35.7% YoY.
• Net profit margins during the year grew from 5.0% in FY21 to 5.3% in FY22.

AVENUE SUPERMARTS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	219,033	280,398	28.0%
Other income	Rs m	1,962	1,175	-40.1%
Total Revenues	Rs m	220,995	281,573	27.4%
Gross profit	Rs m	17,431	24,985	43.3%
Depreciation	Rs m	4,142	4,981	20.3%
Interest	Rs m	417	538	29.1%
Profit before tax	Rs m	14,835	20,641	39.1%
Tax	Rs m	3,840	5,717	48.9%
Profit after tax	Rs m	10,994	14,924	35.7%
Gross profit margin	%	8.0	8.9
Effective tax rate	%	25.9	27.7
Net profit margin	%	5.0	5.3

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AVENUE SUPERMARTS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 12 billion as compared to Rs 11 billion in FY21, thereby witnessing an increase of 10.2%.
• Current assets fell 15% and stood at Rs 34 billion, while fixed assets rose 25% and stood at Rs 120 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 155 billion as against Rs 137 billion during FY21, thereby witnessing a growth of 13%.

AVENUE SUPERMARTS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	121,507	136,382	12.2
Current Liabilities	Rs m	11,058	12,183	10.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	136,551	154,710	13.3
Current assets	Rs m	40,611	34,429	-15.2
Fixed Assets	Rs m	95,939	120,281	25.4
Total Assets	Rs m	136,551	154,710	13.3

AVENUE SUPERMARTS Cash Flow Statement Analysis

• AVENUE SUPERMARTS 's cash flow from operating activities (CFO) during FY22 stood at Rs 14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -13 billion, an improvement of 16.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -964 million from the Rs 856 million net cash flows seen during FY21.

AVENUE SUPERMARTS 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	13,751	13,724	-0.2%
Cash Flow from Investing Activities	Rs m	-11,100	-12,895	-
Cash Flow from Financing Activities	Rs m	-1,795	-1,792	-
Net Cash Flow	Rs m	856	-964	-

Current Valuations for AVENUE SUPERMARTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.0, an improvement from the EPS of Rs 17.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,965.1, stands at 125.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.8 times, while the price to sales ratio stands at 9.2 times.
• The company's price to cash flow (P/CF) ratio stood at 139.6 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	338.1	432.9
TTM Earnings per share	Rs	17.0	23.0
Diluted earnings per share	Rs	17.0	23.0
Price to Cash Flow	x	122.1	139.6
TTM P/E ratio	x	168.2	125.9
Price / Book Value ratio	x	13.9	20.4
Market Cap	Rs m	1,693,283	2,777,949
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AVENUE SUPERMARTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY22, from 3.7x 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 39.4x during FY22, from 36.6x 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 10.9% during FY22, from 9.0% 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 15.5% during FY22, from 12.6% 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 10.0% during FY22, from 8.4% 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	3.7	2.8
Debtors’ Days	Days	0	0
Interest coverage	x	36.6	39.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.4	10.0
Return on equity	%	9.0	10.9
Return on capital employed	%	12.6	15.5

To see how AVENUE SUPERMARTS has performed over the last 5 years, please visit here.

AVENUE SUPERMARTS Share Price Performance

Over the last one year, AVENUE SUPERMARTS share price has moved up from Rs 3,498.1 to Rs 3,965.1, registering a gain of Rs 467.0 or around 13.3%.

Overall, the S&P BSE SENSEX is up 5.3% over the year.

(To know more, check out historical annual results for AVENUE SUPERMARTS and quarterly results for AVENUE SUPERMARTS )

Read: Latest Annual Report Analysis of AVENUE SUPERMARTS