SHOPPERS STOP 2023-24 Annual Report Analysis

Tue, 25 Jun

SHOPPERS STOP 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.

SHOPPERS STOP Income Statement Analysis

• Operating income during the year rose 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.9% in FY24 as against 17.6% in FY23.
• Depreciation charges increased by 14.4% and finance costs increased by 7.2% YoY, respectively.
• Other income declined by 4.7% YoY.
• Net profit for the year declined by 33.4% YoY.
• Net profit margins during the year declined from 2.9% in FY23 to 1.8% in FY24.

SHOPPERS STOP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,221	43,166	7.3%
Other income	Rs m	641	610	-4.7%
Total Revenues	Rs m	40,862	43,776	7.1%
Gross profit	Rs m	7,095	7,294	2.8%
Depreciation	Rs m	3,816	4,366	14.4%
Interest	Rs m	2,327	2,495	7.2%
Profit before tax	Rs m	1,592	1,045	-34.4%
Tax	Rs m	432	272	-37.0%
Profit after tax	Rs m	1,160	773	-33.4%
Gross profit margin	%	17.6	16.9
Effective tax rate	%	27.1	26.0
Net profit margin	%	2.9	1.8

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

SHOPPERS STOP Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 27 billion as compared to Rs 24 billion in FY23, thereby witnessing an increase of 11.5%.
• Current assets rose 13% and stood at Rs 22 billion, while fixed assets rose 20% and stood at Rs 28 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 50 billion as against Rs 43 billion during FY23, thereby witnessing a growth of 17%.

SHOPPERS STOP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,930	2,900	50.3
Current Liabilities	Rs m	23,998	26,763	11.5
Long-term Debt	Rs m	208	0	-100.0
Total Liabilities	Rs m	42,723	49,899	16.8
Current assets	Rs m	19,207	21,732	13.1
Fixed Assets	Rs m	23,516	28,167	19.8
Total Assets	Rs m	42,723	49,899	16.8

SHOPPERS STOP Cash Flow Statement Analysis

• SHOPPERS STOP's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 3.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 283.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -294 million from the Rs -230 million net cash flows seen during FY23.

SHOPPERS STOP 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	5,434	5,613	3.3%
Cash Flow from Investing Activities	Rs m	-291	-1,114	-
Cash Flow from Financing Activities	Rs m	-5,373	-4,792	-
Net Cash Flow	Rs m	-230	-294	-

Current Valuations for SHOPPERS STOP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.0, an decline from the EPS of Rs 10.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 756.8, stands at 107.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 28.7 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.7 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	366.8	392.6
TTM Earnings per share	Rs	10.6	7.0
Diluted earnings per share	Rs	10.6	7.0
Price to Cash Flow	x	14.3	15.7
TTM P/E ratio	x	61.4	107.7
Price / Book Value ratio	x	34.7	27.8
Market Cap	Rs m	66,989	80,516
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHOPPERS STOP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.8x 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 1.4x during FY24, from 1.7x 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 26.6% during FY24, from 60.1% 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 122.0% during FY24, from 183.2% 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 6.5% during FY24, from 8.2% 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	0.8	0.8
Debtors’ Days	Days	0	1
Interest coverage	x	1.7	1.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.2	6.5
Return on equity	%	60.1	26.6
Return on capital employed	%	183.2	122.0

To see how SHOPPERS STOP has performed over the last 5 years, please visit here.

SHOPPERS STOP Share Price Performance

Over the last one year, SHOPPERS STOP share price has moved down from Rs 800.5 to Rs 756.8, registering a loss of Rs 43.7 or around 5.5%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for SHOPPERS STOP and quarterly results for SHOPPERS STOP)