SPENCERS RETAIL 2023-24 Annual Report Analysis

Wed, 31 Jul

SPENCERS RETAIL 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.

SPENCERS RETAIL Income Statement Analysis

• Operating income during the year fell 4.0% 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 0.7% in FY24 as against 0.9% in FY23.
• Depreciation charges increased by 0.6% and finance costs increased by 28.4% YoY, respectively.
• Other income declined by 49.8% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 9.4% in FY23 to 12.4% in FY24.

SPENCERS RETAIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,289	21,404	-4.0%
Other income	Rs m	571	287	-49.8%
Total Revenues	Rs m	22,860	21,691	-5.1%
Gross profit	Rs m	-210	-147	NA
Depreciation	Rs m	1,317	1,325	0.6%
Interest	Rs m	1,152	1,480	28.4%
Profit before tax	Rs m	-2,108	-2,665	NA
Tax	Rs m	-4	-4	NA
Profit after tax	Rs m	-2,104	-2,662	NA
Gross profit margin	%	-0.9	-0.7
Effective tax rate	%	0.2	0.1
Net profit margin	%	-9.4	-12.4

Don't Miss: Key Information for Long-term Investors

SPENCERS RETAIL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 13.6%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY23, a growth of 55.9%.
• Current assets rose 3% and stood at Rs 4 billion, while fixed assets rose 4% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 4%.

SPENCERS RETAIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-1,509	-4,162	NA
Current Liabilities	Rs m	8,585	9,753	13.6
Long-term Debt	Rs m	1,809	2,820	55.9
Total Liabilities	Rs m	16,294	16,959	4.1
Current assets	Rs m	3,640	3,736	2.7
Fixed Assets	Rs m	12,654	13,223	4.5
Total Assets	Rs m	16,294	16,959	4.1

SPENCERS RETAIL Cash Flow Statement Analysis

• SPENCERS RETAIL's cash flow from operating activities (CFO) during FY24 stood at Rs 351 million, an improvement of 31.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 113 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -280 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 183 million from the Rs -37 million net cash flows seen during FY23.

SPENCERS RETAIL 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	267	351	31.2%
Cash Flow from Investing Activities	Rs m	-256	113	-
Cash Flow from Financing Activities	Rs m	-48	-280	-
Net Cash Flow	Rs m	-37	183	-

Current Valuations for SPENCERS RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -29.5, an decline from the EPS of Rs -23.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 83.8, stands at -3.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.8 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at -6.5 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	247.3	237.5
TTM Earnings per share	Rs	-23.3	-29.5
Diluted earnings per share	Rs	-23.3	-29.5
Price to Cash Flow	x	-5.9	-6.5
TTM P/E ratio	x	-2.2	-3.1
Price / Book Value ratio	x	-4.5	-2.1
Market Cap	Rs m	6,761	8,626
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SPENCERS RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY24, from 0.4x 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 improved and stood at -0.8x during FY24, from -0.8x 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 63.9% during FY24, from 139.5% 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 improved and stood at 88.3% during FY24, from -318.6% 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 declined and down at -7.0% during FY24, from -5.8% 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	0.4	0.4
Debtors’ Days	Days	32	43
Interest coverage	x	-0.8	-0.8
Debt to equity ratio	x	-1.2	-0.7
Return on assets	%	-5.8	-7.0
Return on equity	%	139.5	63.9
Return on capital employed	%	-318.6	88.3

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

SPENCERS RETAIL Share Price Performance

Over the last one year, SPENCERS RETAIL share price has moved up from Rs 61.7 to Rs 83.8, registering a gain of Rs 22.1 or around 35.8%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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