SPECIALITY RESTAURANTS 2023-24 Annual Report Analysis

Mon, 9 Sep

SPECIALITY RESTAURANTS 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.

SPECIALITY RESTAURANTS Income Statement Analysis

• Operating income during the year rose 7.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.3% in FY24 as against 22.6% in FY23.
• Depreciation charges increased by 32.1% and finance costs increased by 5.0% YoY, respectively.
• Other income grew by 22.4% YoY.
• Net profit for the year declined by 69.0% YoY.
• Net profit margins during the year declined from 25.8% in FY23 to 7.4% in FY24.

SPECIALITY RESTAURANTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,750	4,047	7.9%
Other income	Rs m	245	300	22.4%
Total Revenues	Rs m	3,995	4,347	8.8%
Gross profit	Rs m	846	618	-27.0%
Depreciation	Rs m	317	419	32.1%
Interest	Rs m	139	146	5.0%
Profit before tax	Rs m	634	353	-44.4%
Tax	Rs m	-333	52	NA
Profit after tax	Rs m	968	300	-69.0%
Gross profit margin	%	22.6	15.3
Effective tax rate	%	-52.6	14.9
Net profit margin	%	25.8	7.4

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

SPECIALITY RESTAURANTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 787 million as compared to Rs 804 million in FY23, thereby witnessing an decrease of -2.1%.
• Current assets rose 4% and stood at Rs 2 billion, while fixed assets rose 10% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 8%.

SPECIALITY RESTAURANTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,416	2,815	16.5
Current Liabilities	Rs m	804	787	-2.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,401	4,761	8.2
Current assets	Rs m	2,090	2,174	4.0
Fixed Assets	Rs m	2,306	2,543	10.3
Total Assets	Rs m	4,401	4,761	8.2

SPECIALITY RESTAURANTS Cash Flow Statement Analysis

• SPECIALITY RESTAURANTS's cash flow from operating activities (CFO) during FY24 stood at Rs 625 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -206 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -420 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 46 million from the Rs 46 million net cash flows seen during FY23.

SPECIALITY RESTAURANTS 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	803	625	-22.2%
Cash Flow from Investing Activities	Rs m	-707	-206	-
Cash Flow from Financing Activities	Rs m	-50	-420	-
Net Cash Flow	Rs m	46	46	0.1%

Current Valuations for SPECIALITY RESTAURANTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an decline from the EPS of Rs 20.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 174.8, stands at 27.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 15.2 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	79.8	84.1
TTM Earnings per share	Rs	20.6	6.2
Diluted earnings per share	Rs	20.1	6.2
Price to Cash Flow	x	8.0	15.2
TTM P/E ratio	x	10.6	27.7
Price / Book Value ratio	x	3.8	3.9
Market Cap	Rs m	9,064	10,948
Dividends per share (Unadj.)	Rs	2.5	1.0

Ratio Analysis for SPECIALITY RESTAURANTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY24, from 2.6x 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 3.4x during FY24, from 5.6x 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 10.7% during FY24, from 40.1% 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 17.7% during FY24, from 32.0% 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 9.4% during FY24, from 25.2% 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	2.6	2.8
Debtors’ Days	Days	6	7
Interest coverage	x	5.6	3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	25.2	9.4
Return on equity	%	40.1	10.7
Return on capital employed	%	32.0	17.7

To see how SPECIALITY RESTAURANTS has performed over the last 5 years, please visit here.

SPECIALITY RESTAURANTS Share Price Performance

Over the last one year, SPECIALITY RESTAURANTS share price has moved down from Rs 216.5 to Rs 174.8, registering a loss of Rs 41.7 or around 19.3%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for SPECIALITY RESTAURANTS and quarterly results for SPECIALITY RESTAURANTS)