LIBERTY SHOE 2023-24 Annual Report Analysis

Thu, 21 Nov

LIBERTY SHOE 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.

LIBERTY SHOE Income Statement Analysis

• Operating income during the year fell 2.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.5% in FY24 as against 9.1% in FY23.
• Depreciation charges increased by 6.5% and finance costs increased by 12.4% YoY, respectively.
• Other income grew by 27.0% YoY.
• Net profit for the year declined by 13.6% YoY.
• Net profit margins during the year declined from 2.0% in FY23 to 1.8% in FY24.

LIBERTY SHOE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,543	6,369	-2.7%
Other income	Rs m	18	23	27.0%
Total Revenues	Rs m	6,561	6,391	-2.6%
Gross profit	Rs m	599	604	0.9%
Depreciation	Rs m	317	338	6.5%
Interest	Rs m	121	136	12.4%
Profit before tax	Rs m	179	153	-14.3%
Tax	Rs m	49	41	-16.3%
Profit after tax	Rs m	129	112	-13.6%
Gross profit margin	%	9.1	9.5
Effective tax rate	%	27.7	27.0
Net profit margin	%	2.0	1.8

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LIBERTY SHOE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -8.3%.
• Long-term debt down at Rs 9 million as compared to Rs 74 million during FY23, a fall of 88.1%.
• Current assets fell 4% and stood at Rs 3 billion, while fixed assets rose 3% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a fall of 1%.

LIBERTY SHOE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,982	2,091	5.5
Current Liabilities	Rs m	1,719	1,577	-8.3
Long-term Debt	Rs m	74	9	-88.1
Total Liabilities	Rs m	4,707	4,638	-1.5
Current assets	Rs m	3,030	2,917	-3.7
Fixed Assets	Rs m	1,677	1,721	2.6
Total Assets	Rs m	4,707	4,638	-1.5

LIBERTY SHOE Cash Flow Statement Analysis

• LIBERTY SHOE's cash flow from operating activities (CFO) during FY24 stood at Rs 882 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -444 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -432 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 10 million from the Rs 3 million net cash flows seen during FY23.

LIBERTY SHOE 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	940	882	-6.2%
Cash Flow from Investing Activities	Rs m	-557	-444	-
Cash Flow from Financing Activities	Rs m	-387	-432	-
Net Cash Flow	Rs m	3	10	264.1%

Current Valuations for LIBERTY SHOE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.5, an decline from the EPS of Rs 7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 460.3, stands at 73.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	384.0	373.7
TTM Earnings per share	Rs	7.6	6.5
Diluted earnings per share	Rs	7.6	6.5
Price to Cash Flow	x	7.5	11.5
TTM P/E ratio	x	25.7	73.0
Price / Book Value ratio	x	2.5	2.5
Market Cap	Rs m	4,858	5,164
Dividends per share (Unadj.)	Rs	2.5	0.0

Ratio Analysis for LIBERTY SHOE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.8x 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 2.1x during FY24, from 2.5x 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 5.3% during FY24, from 6.5% 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 13.8% during FY24, from 14.6% 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 improved and stood at 5.3% during FY24, from 5.3% 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	1.8	1.8
Debtors’ Days	Days	488	560
Interest coverage	x	2.5	2.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	5.3
Return on equity	%	6.5	5.3
Return on capital employed	%	14.6	13.8

To see how LIBERTY SHOE has performed over the last 5 years, please visit here.

LIBERTY SHOE Share Price Performance

Over the last one year, LIBERTY SHOE share price has moved up from Rs 282.0 to Rs 460.3, registering a gain of Rs 178.3 or around 63.2%.

Overall, the S&P BSE SENSEX is up 17.5% over the year.

(To know more, check out historical annual results for LIBERTY SHOE and quarterly results for LIBERTY SHOE)