FUTURE CONSUMER 2021-22 Annual Report Analysis

Wed, 7 Sep

FUTURE CONSUMER 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.

FUTURE CONSUMER Income Statement Analysis

• Operating income during the year rose 24.0% 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 down at 24.3% in FY22 as against 29.8% in FY21.
• Depreciation charges decreased by 11.5% and finance costs decreased by 12.6% YoY, respectively.
• Other income declined by 2.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 40.8% in FY21 to 30.6% in FY22.

FUTURE CONSUMER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	11,845	14,688	24.0%
Other income	Rs m	212	206	-2.8%
Total Revenues	Rs m	12,057	14,894	23.5%
Gross profit	Rs m	-3,528	-3,562	NA
Depreciation	Rs m	582	515	-11.5%
Interest	Rs m	723	632	-12.6%
Profit before tax	Rs m	-4,621	-4,504	NA
Tax	Rs m	212	-6	NA
Profit after tax	Rs m	-4,833	-4,498	NA
Gross profit margin	%	-29.8	-24.3
Effective tax rate	%	-4.6	0.1
Net profit margin	%	-40.8	-30.6

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FUTURE CONSUMER Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 8 billion as compared to Rs 9 billion in FY21, thereby witnessing an decrease of -12.9%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY21, a fall of 23.5%.
• Current assets fell 52% and stood at Rs 4 billion, while fixed assets fell 11% and stood at Rs 8 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 12 billion as against Rs 18 billion during FY21, thereby witnessing a fall of 33%.

FUTURE CONSUMER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,788	1,432	-75.3
Current Liabilities	Rs m	9,318	8,114	-12.9
Long-term Debt	Rs m	1,697	1,299	-23.5
Total Liabilities	Rs m	18,134	12,228	-32.6
Current assets	Rs m	9,357	4,454	-52.4
Fixed Assets	Rs m	8,777	7,774	-11.4
Total Assets	Rs m	18,134	12,228	-32.6

FUTURE CONSUMER Cash Flow Statement Analysis

• FUTURE CONSUMER's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion, an improvement of 25.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 56 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -93 million from the Rs -114 million net cash flows seen during FY21.

FUTURE CONSUMER 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	951	1,190	25.1%
Cash Flow from Investing Activities	Rs m	-157	56	-
Cash Flow from Financing Activities	Rs m	-908	-1,338	-
Net Cash Flow	Rs m	-114	-93	-

Current Valuations for FUTURE CONSUMER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.3, an improvement from the EPS of Rs -2.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1.9, stands at -0.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -4.1 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	6.0	7.4
TTM Earnings per share	Rs	-2.4	-2.3
Diluted earnings per share	Rs	-2.4	-2.3
Price to Cash Flow	x	-2.8	-4.1
TTM P/E ratio	x	-2.6	-0.8
Price / Book Value ratio	x	4.3	11.3
Market Cap	Rs m	24,749	16,186
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FUTURE CONSUMER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY22, from 1.0x 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 deteriorated and stood at -6.1x during FY22, from -5.4x 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 declined and down at -314.1% during FY22, from -83.5% 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 declined and down at -141.8% during FY22, from -52.1% 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 declined and down at -31.6% during FY22, from -22.7% 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	1.0	0.5
Debtors’ Days	Days	1,936	371
Interest coverage	x	-5.4	-6.1
Debt to equity ratio	x	0.3	0.9
Return on assets	%	-22.7	-31.6
Return on equity	%	-83.5	-314.1
Return on capital employed	%	-52.1	-141.8

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

FUTURE CONSUMER Share Price Performance

Over the last one year, FUTURE CONSUMER share price has moved down from Rs 7.1 to Rs 1.9, registering a loss of Rs 5.2 or around 73.2%.

Overall, the S&P BSE SENSEX is up 1.3% over the year.

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