METRO BRANDS 2023-24 Annual Report Analysis

Thu, 29 Aug

METRO BRANDS 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.

METRO BRANDS Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 36.1% in FY24 as against 38.6% in FY23.
• Depreciation charges increased by 26.6% and finance costs increased by 25.1% YoY, respectively.
• Other income grew by 30.2% YoY.
• Net profit for the year grew by 13.5% YoY.
• Net profit margins during the year grew from 20.7% in FY23 to 21.3% in FY24.

METRO BRANDS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,581	19,390	10.3%
Other income	Rs m	544	708	30.2%
Total Revenues	Rs m	18,125	20,098	10.9%
Gross profit	Rs m	6,788	6,996	3.1%
Depreciation	Rs m	1,810	2,291	26.6%
Interest	Rs m	631	789	25.1%
Profit before tax	Rs m	4,891	4,624	-5.5%
Tax	Rs m	1,257	499	-60.3%
Profit after tax	Rs m	3,634	4,125	13.5%
Gross profit margin	%	38.6	36.1
Effective tax rate	%	25.7	10.8
Net profit margin	%	20.7	21.3

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METRO BRANDS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -1.7%.
• Current assets rose 13% and stood at Rs 17 billion, while fixed assets rose 16% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 29 billion during FY23, thereby witnessing a growth of 14%.

METRO BRANDS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,369	18,433	19.9
Current Liabilities	Rs m	5,149	5,060	-1.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	29,015	33,164	14.3
Current assets	Rs m	15,028	16,916	12.6
Fixed Assets	Rs m	13,987	16,247	16.2
Total Assets	Rs m	29,015	33,164	14.3

METRO BRANDS Cash Flow Statement Analysis

• METRO BRANDS's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 55.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 387.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion, an improvement of 10% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 161 million from the Rs -297 million net cash flows seen during FY23.

METRO BRANDS 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	3,807	5,901	55.0%
Cash Flow from Investing Activities	Rs m	-516	-2,513	-
Cash Flow from Financing Activities	Rs m	-3,588	-3,227	-
Net Cash Flow	Rs m	-297	161	-

Current Valuations for METRO BRANDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.2, an improvement from the EPS of Rs 13.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,323.7, stands at 87.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.5 times, while the price to sales ratio stands at 18.6 times.
• The company's price to cash flow (P/CF) ratio stood at 47.1 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	64.7	71.3
TTM Earnings per share	Rs	13.4	15.2
Diluted earnings per share	Rs	13.4	15.2
Price to Cash Flow	x	39.7	47.1
TTM P/E ratio	x	59.4	87.5
Price / Book Value ratio	x	13.1	16.4
Market Cap	Rs m	201,837	302,491
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for METRO BRANDS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY24, from 2.9x 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 6.9x during FY24, from 8.8x 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 22.4% during FY24, from 23.6% 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 29.4% during FY24, from 35.9% 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 14.8% during FY24, from 14.7% 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	2.9	3.3
Debtors’ Days	Days	2	1
Interest coverage	x	8.8	6.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.7	14.8
Return on equity	%	23.6	22.4
Return on capital employed	%	35.9	29.4

To see how METRO BRANDS has performed over the last 5 years, please visit here.

METRO BRANDS Share Price Performance

Over the last one year, METRO BRANDS share price has moved down from Rs 1,046.6 to Rs 0.0, registering a loss of Rs 1,046.6 or around 100.0%.

Overall, the NIFTY 50 is down 0.1% over the year.

(To know more, check out historical annual results for METRO BRANDS and quarterly results for METRO BRANDS)