7NR RETAIL 2021-22 Annual Report Analysis

Tue, 8 Nov

7NR RETAIL 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.

7NR RETAIL Income Statement Analysis

• Operating income during the year rose 770.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.9% in FY22 as against 22.0% in FY21.
• Depreciation charges decreased by 8.3% and finance costs increased by 900.0% YoY, respectively.
• Other income grew by 31.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 19.4% in FY21 to 3.2% in FY22.

7NR RETAIL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	28	240	770.6%
Other income	Rs m	2	3	31.2%
Total Revenues	Rs m	30	243	716.1%
Gross profit	Rs m	-6	7	NA
Depreciation	Rs m	1	1	-8.3%
Interest	Rs m	0	0	900.0%
Profit before tax	Rs m	-5	8	NA
Tax	Rs m	0	1	0.0
Profit after tax	Rs m	-5	8	NA
Gross profit margin	%	-22.0	2.9
Effective tax rate	%	0.0	6.1
Net profit margin	%	-19.4	3.2

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7NR RETAIL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 99 million as compared to Rs 4 million in FY21, thereby witnessing an increase of 2636.4%.
• Current assets rose 72% and stood at Rs 197 million, while fixed assets fell 68% and stood at Rs 9 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 207 million as against Rs 144 million during FY21, thereby witnessing a growth of 43%.

7NR RETAIL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	101	108	7.6
Current Liabilities	Rs m	4	99	2,636.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	144	207	43.1
Current assets	Rs m	115	197	71.5
Fixed Assets	Rs m	29	9	-68.3
Total Assets	Rs m	144	207	43.1

7NR RETAIL Cash Flow Statement Analysis

• 7NR RETAIL's cash flow from operating activities (CFO) during FY22 stood at Rs -30 million, an improvement of 15.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 8 million, an improvement of 20,950.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 15 million, an improvement of 335% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -6 million from the Rs -22 million net cash flows seen during FY21.

7NR RETAIL 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	-26	-30	-
Cash Flow from Investing Activities	Rs m	0	8	20,950.0%
Cash Flow from Financing Activities	Rs m	4	15	334.6%
Net Cash Flow	Rs m	-22	-6	-

Current Valuations for 7NR RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1.4, stands at 45.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 173.8 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	2.6	2.3
TTM Earnings per share	Rs	-0.5	0.1
Diluted earnings per share	Rs	0.0	0.0
Price to Cash Flow	x	-403.4	173.8
TTM P/E ratio	x	-293.7	45.0
Price / Book Value ratio	x	2.4	14.5
Market Cap	Rs m	238	1,563
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for 7NR RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 31.9x 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 improved and stood at 28.2x during FY22, from -177.0x 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 improved and stood at 7.1% during FY22, from -5.3% 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 improved and stood at 7.8% during FY22, from -5.3% 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 improved and stood at 3.9% during FY22, from -3.7% 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	31.9	2.0
Debtors’ Days	Days	203	784
Interest coverage	x	-177.0	28.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-3.7	3.9
Return on equity	%	-5.3	7.1
Return on capital employed	%	-5.3	7.8

To see how 7NR RETAIL has performed over the last 5 years, please visit here.

7NR RETAIL Share Price Performance

Over the last one year, 7NR RETAIL share price has moved down from Rs 14.5 to Rs 1.4, registering a loss of Rs 13.0 or around 90.0%.

Overall, the S&P BSE SENSEX is up 1.9% over the year.

(To know more, check out historical annual results for 7NR RETAIL and quarterly results for 7NR RETAIL)