V-MART RETAIL 2023-24 Annual Report Analysis

Fri, 5 Jul

V-MART 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.

V-MART RETAIL Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.9% in FY24 as against 11.2% in FY23.
• Depreciation charges increased by 23.4% and finance costs increased by 20.6% YoY, respectively.
• Other income grew by 39.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.3% in FY23 to 3.5% in FY24.

V-MART RETAIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	24,648	27,856	13.0%
Other income	Rs m	150	210	39.9%
Total Revenues	Rs m	24,798	28,066	13.2%
Gross profit	Rs m	2,766	2,209	-20.1%
Depreciation	Rs m	1,800	2,221	23.4%
Interest	Rs m	1,246	1,502	20.6%
Profit before tax	Rs m	-130	-1,305	NA
Tax	Rs m	-52	-337	NA
Profit after tax	Rs m	-79	-968	NA
Gross profit margin	%	11.2	7.9
Effective tax rate	%	39.7	25.9
Net profit margin	%	-0.3	-3.5

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V-MART RETAIL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 15.4%.
• Current assets fell 2% and stood at Rs 10 billion, while fixed assets rose 6% and stood at Rs 17 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 28 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 3%.

V-MART RETAIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,363	7,411	-11.4
Current Liabilities	Rs m	7,733	8,922	15.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	26,895	27,633	2.7
Current assets	Rs m	10,577	10,348	-2.2
Fixed Assets	Rs m	16,317	17,285	5.9
Total Assets	Rs m	26,895	27,633	2.7

V-MART RETAIL Cash Flow Statement Analysis

• V-MART RETAIL's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 118.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 92 million from the Rs -150 million net cash flows seen during FY23.

V-MART 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	1,765	3,859	118.6%
Cash Flow from Investing Activities	Rs m	-1,586	-1,177	-
Cash Flow from Financing Activities	Rs m	-329	-2,590	-
Net Cash Flow	Rs m	-150	92	-

Current Valuations for V-MART RETAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -48.9, an decline from the EPS of Rs -4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,077.0, stands at -62.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.2 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 31.8 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	1,246.8	1,408.3
TTM Earnings per share	Rs	-4.0	-48.9
Diluted earnings per share	Rs	-4.0	-48.9
Price to Cash Flow	x	24.8	31.8
TTM P/E ratio	x	-543.5	-62.9
Price / Book Value ratio	x	7.2	5.4
Market Cap	Rs m	60,421	39,879
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for V-MART RETAIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.4x 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 deteriorated and stood at 0.1x during FY24, from 0.9x 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 -13.1% during FY24, from -0.9% 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 2.7% during FY24, from 13.3% 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 1.9% during FY24, from 4.3% 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	1.4	1.2
Debtors’ Days	Days	0	0
Interest coverage	x	0.9	0.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.3	1.9
Return on equity	%	-0.9	-13.1
Return on capital employed	%	13.3	2.7

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

V-MART RETAIL Share Price Performance

Over the last one year, V-MART RETAIL share price has moved up from Rs 2,206.9 to Rs 3,077.0, registering a gain of Rs 870.1 or around 39.4%.

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

(To know more, check out historical annual results for V-MART RETAIL and quarterly results for V-MART RETAIL)