FUTURE LIFESTYLE 2020-21 Annual Report Analysis

Wed, 31 Mar

FUTURE LIFESTYLE has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

FUTURE LIFESTYLE Income Statement Analysis

• Operating income during the year fell 64.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 100.4% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 0.2% in FY21 as against 16.7% in FY20.
• Depreciation charges decreased by 14.7% and finance costs increased by 5.1% YoY, respectively.
• Other income declined by 21.6% YoY.
• Net profit for the year grew by 1608.9% YoY.
• Net profit margins during the year declined from 0.9% in FY20 to 44.6% in FY21.

FUTURE LIFESTYLE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	56,744	20,454	-64.0%
Other income	Rs m	643	504	-21.6%
Total Revenues	Rs m	57,386	20,958	-63.5%
Gross profit	Rs m	9,503	-41	-100.4%
Depreciation	Rs m	7,015	5,984	-14.7%
Interest	Rs m	3,486	3,662	5.1%
Profit before tax	Rs m	-355	-9,183	2,484.7%
Tax	Rs m	178	-70	-139.4%
Profit after tax	Rs m	-533	-9,113	1,608.9%
Gross profit margin	%	16.7	-0.2
Effective tax rate	%	-50.1	0.8
Net profit margin	%	-0.9	-44.6

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FUTURE LIFESTYLE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 36 billion as compared to Rs 45 billion in FY20, thereby witnessing an decrease of -20.7%.
• Long-term debt stood at Rs 11 billion as compared to Rs 2 billion during FY20, a growth of 461.5%.
• Current assets fell 14% and stood at Rs 33 billion, while fixed assets fell 17% and stood at Rs 28 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 61 billion as against Rs 72 billion during FY20, thereby witnessing a fall of 15%.

FUTURE LIFESTYLE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	16,221	6,883	-57.6
Current Liabilities	Rs m	44,869	35,578	-20.7
Long-term Debt	Rs m	1,901	10,673	461.5
Total Liabilities	Rs m	72,145	61,332	-15.0
Current assets	Rs m	38,049	32,876	-13.6
Fixed Assets	Rs m	34,096	28,456	-16.5
Total Assets	Rs m	72,145	61,332	-15.0

FUTURE LIFESTYLE Cash Flow Statement Analysis

• FUTURE LIFESTYLE's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -126 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 321 million from the Rs -1 billion net cash flows seen during FY20.

FUTURE LIFESTYLE Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	7,910	3,031	-61.7%
Cash Flow from Investing Activities	Rs m	-8,722	-126	-
Cash Flow from Financing Activities	Rs m	-229	-2,585	-
Net Cash Flow	Rs m	-1,041	321	-

Current Valuations for FUTURE LIFESTYLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -45.2, an decline from the EPS of Rs -2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 48.9, stands at -1.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -7.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	281.2	101.4
TTM Earnings per share	Rs	-2.6	-45.2
Diluted earnings per share	Rs	-2.6	-45.2
Price to Cash Flow	x	3.7	-7.1
TTM P/E ratio	x	-44.7	-1.1
Price / Book Value ratio	x	3.9	3.2
Market Cap	Rs m	62,555	22,064
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FUTURE LIFESTYLE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.8x during FY20. 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 -1.5x during FY21, from 0.9x during FY20. 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 -132.4% during FY21, from -3.3% during FY21. 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 -31.5% during FY21, from 17.3% during FY20. 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 -8.9% during FY21, from 4.1% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.8	0.9
Debtors’ Days	Days	2	7
Interest coverage	x	0.9	-1.5
Debt to equity ratio	x	0.1	1.6
Return on assets	%	4.1	-8.9
Return on equity	%	-3.3	-132.4
Return on capital employed	%	17.3	-31.5

To see how FUTURE LIFESTYLE has performed over the last 5 years, please visit here.

FUTURE LIFESTYLE Share Price Performance

Over the last one year, FUTURE LIFESTYLE share price has moved down from Rs 118.1 to Rs 48.9, registering a loss of Rs 69.2 or around 58.6%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for FUTURE LIFESTYLE and quarterly results for FUTURE LIFESTYLE)