V2 RETAIL 2023-24 Annual Report Analysis

Wed, 11 Sep

V2 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.

V2 RETAIL Income Statement Analysis

• Operating income during the year rose 38.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 73.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 14.4% and finance costs increased by 15.5% YoY, respectively.
• Other income grew by 24.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.5% in FY23 to 2.4% in FY24.

V2 RETAIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,389	11,647	38.8%
Other income	Rs m	67	83	24.4%
Total Revenues	Rs m	8,456	11,730	38.7%
Gross profit	Rs m	855	1,483	73.6%
Depreciation	Rs m	671	767	14.4%
Interest	Rs m	420	485	15.5%
Profit before tax	Rs m	-170	314	NA
Tax	Rs m	-41	36	NA
Profit after tax	Rs m	-128	278	NA
Gross profit margin	%	10.2	12.7
Effective tax rate	%	24.4	11.4
Net profit margin	%	-1.5	2.4

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V2 RETAIL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 66.4%.
• Long-term debt stood at Rs 173 million as compared to Rs 72 million during FY23, a growth of 139.5%.
• Current assets rose 49% and stood at Rs 5 billion, while fixed assets rose 18% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 31%.

V2 RETAIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,441	2,747	12.5
Current Liabilities	Rs m	2,044	3,401	66.4
Long-term Debt	Rs m	72	173	139.5
Total Liabilities	Rs m	7,613	9,987	31.2
Current assets	Rs m	3,259	4,864	49.3
Fixed Assets	Rs m	4,354	5,122	17.6
Total Assets	Rs m	7,613	9,987	31.2

V2 RETAIL Cash Flow Statement Analysis

• V2 RETAIL's cash flow from operating activities (CFO) during FY24 stood at Rs 934 million, an improvement of 8.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -393 million, an improvement of 220.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -496 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 45 million from the Rs -16 million net cash flows seen during FY23.

V2 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	864	934	8.2%
Cash Flow from Investing Activities	Rs m	-123	-393	-
Cash Flow from Financing Activities	Rs m	-757	-496	-
Net Cash Flow	Rs m	-16	45	-

Current Valuations for V2 RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an improvement from the EPS of Rs -3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,050.1, stands at 96.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.2 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	243.9	336.7
TTM Earnings per share	Rs	-3.7	8.0
Diluted earnings per share	Rs	-3.7	8.0
Price to Cash Flow	x	4.4	8.5
TTM P/E ratio	x	-18.5	96.1
Price / Book Value ratio	x	1.7	3.2
Market Cap	Rs m	4,144	8,883
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for V2 RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.6x 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 improved and stood at 1.6x during FY24, from 0.6x 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 improved and stood at 10.1% during FY24, from -5.3% 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 27.4% during FY24, from 10.0% 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 improved and stood at 7.6% during FY24, from 3.8% 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	1.6	1.4
Debtors’ Days	Days	0	0
Interest coverage	x	0.6	1.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	3.8	7.6
Return on equity	%	-5.3	10.1
Return on capital employed	%	10.0	27.4

To see how V2 RETAIL has performed over the last 5 years, please visit here.

V2 RETAIL Share Price Performance

Over the last one year, V2 RETAIL share price has moved up from Rs 143.4 to Rs 1,050.1, registering a gain of Rs 906.8 or around 632.5%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for V2 RETAIL and quarterly results for V2 RETAIL)