AVENUE SUPERMARTS 2023-24 Annual Report Analysis

Mon, 29 Jul

AVENUE SUPERMARTS 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.

AVENUE SUPERMARTS Income Statement Analysis

• Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.0% in FY24 as against 9.4% in FY23.
• Depreciation charges increased by 14.4% and finance costs decreased by 13.8% YoY, respectively.
• Other income grew by 13.2% YoY.
• Net profit for the year grew by 6.6% YoY.
• Net profit margins during the year declined from 6.2% in FY23 to 5.6% in FY24.

AVENUE SUPERMARTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	385,288	456,835	18.6%
Other income	Rs m	1,293	1,465	13.2%
Total Revenues	Rs m	386,582	458,299	18.6%
Gross profit	Rs m	36,370	41,038	12.8%
Depreciation	Rs m	6,389	7,308	14.4%
Interest	Rs m	674	581	-13.8%
Profit before tax	Rs m	30,601	34,613	13.1%
Tax	Rs m	6,818	9,257	35.8%
Profit after tax	Rs m	23,783	25,356	6.6%
Gross profit margin	%	9.4	9.0
Effective tax rate	%	22.3	26.7
Net profit margin	%	6.2	5.6

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

AVENUE SUPERMARTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 20 billion as compared to Rs 15 billion in FY23, thereby witnessing an increase of 34.9%.
• Current assets rose 14% and stood at Rs 62 billion, while fixed assets rose 18% and stood at Rs 150 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 212 billion as against Rs 181 billion during FY23, thereby witnessing a growth of 17%.

AVENUE SUPERMARTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	160,319	186,609	16.4
Current Liabilities	Rs m	14,670	19,791	34.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	181,045	211,725	16.9
Current assets	Rs m	54,484	62,020	13.8
Fixed Assets	Rs m	126,561	149,705	18.3
Total Assets	Rs m	181,045	211,725	16.9

AVENUE SUPERMARTS Cash Flow Statement Analysis

• AVENUE SUPERMARTS 's cash flow from operating activities (CFO) during FY24 stood at Rs 27 billion, an improvement of 4.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -25 billion, an improvement of 6.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 28% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 1 billion net cash flows seen during FY23.

AVENUE SUPERMARTS 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	26,303	27,458	4.4%
Cash Flow from Investing Activities	Rs m	-23,131	-24,682	-
Cash Flow from Financing Activities	Rs m	-2,051	-1,476	-
Net Cash Flow	Rs m	1,120	1,300	16.0%

Current Valuations for AVENUE SUPERMARTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.0, an improvement from the EPS of Rs 36.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,059.1, stands at 124.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.6 times, while the price to sales ratio stands at 7.2 times.
• The company's price to cash flow (P/CF) ratio stood at 78.8 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	594.3	702.0
TTM Earnings per share	Rs	36.7	39.0
Diluted earnings per share	Rs	36.5	39.0
Price to Cash Flow	x	73.4	78.8
TTM P/E ratio	x	93.1	124.2
Price / Book Value ratio	x	15.8	13.8
Market Cap	Rs m	2,525,345	2,575,488
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 3.1x during FY24, from 3.7x 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 improved and stood at 60.5x during FY24, from 46.4x 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 declined and down at 13.6% during FY24, from 14.8% 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 18.9% during FY24, from 19.5% 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 12.3% during FY24, from 13.5% 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	3.7	3.1
Debtors’ Days	Days	0	0
Interest coverage	x	46.4	60.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.5	12.3
Return on equity	%	14.8	13.6
Return on capital employed	%	19.5	18.9

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 3,716.7 to Rs 5,059.1, registering a gain of Rs 1,342.5 or around 36.1%.

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

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