NAME – SIDDHARTHA SEKHAR SARKAR

SECTION – A
ROLL NO – 19PGDM049

PGDM
IMI KOLKATA
TRIMESTER – 1

FINANCIAL ACCOUNTING AND ANALYSIS ASSIGNMENT

STUDY OF THE ORGANISED RETAIL SECTOR IN INDIA

A COMPARATIVE ANALYSIS OF D-MART AND
SPENCER’S RETAIL

SUBMITTED TO:
Prof. Abhijit Roy
 INTRODUCTION TO ORGANISED RETAIL SECTOR IN INDIA
Retail is India’s one of the largest industries. It is accounting for over 10 percent of the
country’s GDP and provides 8 percent of the total employment. The Indian Retail market
estimated value to be US $600 billion and also considered one of the top five retail markets
in the world by economic value. India is one the fastest growing retail markets in the world,
with 1.2 billion people. Total consumption expenditure is expected to reach nearly US $3600
billion by 2020 from US $1824 billion in 2017. India is expected to become world’s fastest
growing e-commerce market, driven by robust investment in the sector and rapid increase
in the number of internet users.

BRIEF INTRODUCTION OF DMART

Dmart is founded by value investor Mr. Radhakishan Damani in the year 2000. With a
mission to be lowest price d retailer in its area of operation, Dmart has grown steadily and
over the years and operates over 155 stores in 11 states and 1 Indian territory of India.
Dmart is promoted by Avenue Supermarts Ltd (ASL). The company has its headquarter in
Mumbai. Dmart has the market value of ₹39,988 crore. This pegged this as the 65th most
valuable Indian firm. As of 16th September 2018, the market capitalization of Dmart is close
to ₹95,000 crore. This is 33rd for all listed companies in Bombay Stock Exchange.

Brief introduction of Spencer’s Retail

Spencer’s retail is a chain of retail stores headquartered in Kolkata, West Bengal. Spencer’s
(incorporated in 1963) was owned by a British gentleman. The company was Indianized in
1960 and became part of the RPG Group in 1989. Spencer’s offers a diverse assortment of
food, personal care and life style (fashion, home, entertainment). The company’s pan-India
presence comprises 156 stores, including 74 large format stores in 33 cities with a trading
area of 13.69 lakh sq. ft. The retail business of CESE Limited and its subsidiary was demerged
rom 1st October 2017 and spun off into a standalone company called Spencer’s Retail. The
company was listed in Bombay Stock Exchange and Calcutta Stock Exchange in 2017-2018.
COMPARATIVE ANALYSIS OF DMART AND SPENCER’S
RETAIL

DMART SPENCER'S RETAIL

MARKET CAP (₹ Cr.) 5.03 0

EARNINGS PER SHARE (EPS) 12.57 -10.56

DIVIDEND PER SHARE (DPS) 0 0

PRICE EARNING RATIO (P/E) 105.54 0

BV/SHARE 74.03 -62.54

PRICE-TO-BOOK RATIO (P/B ) 17.93 0

PROFIT AFTER TAX (PAT) 62.58 20.72

DEBT/EQUITY RATIO 0.1 -1.5

RETURN ON ASSET(ROA) 13.75 -35.76

RETURN ON EQUITY 18.56 0

RETURN ON CAPITAL EMPLOYED 24.14 -21.98

 BALANCE SHEET

DMART SPENCER,S RETAIL

LIABILITIES

SHARE CAPITAL (₹ Cr.) 624.08 296.75

TOTAL RESERVE (₹ Cr.) 3995.95 -1993.95

SHAREHOLEDR'S FUND (₹ Cr.) 4624.71 198.96

TOTAL NON- CURRENT LIABILITIES (₹ Cr.) 0 0

TOTAL CURRENT LIABILITIES 664.83 352.95

TOTAL LIABILITY (₹ Cr.) 4889.49 198.96

ASSETS

GROSS BLOCK (₹ Cr.) 3616.3 234.22

ACCUMULATED SEPRECIATION (₹ Cr.) 376.44 64.8

IMPAIRMENT OF ASSETS (₹ Cr.) 0 0

NET BLOCK (₹ Cr) 3239.86 169.41

OTHER NON- CURRENT ASSETS (₹ Cr.) 0 0

TOTAL CURRENT ASSESTS (₹ Cr.) 0 0

TOTAL ASSETS (₹ Cr.) 4889.49 215.1

CONTINGENT LIABILITIES (₹ Cr.) 19.53 26.96

TOTAL DEBT (₹ Cr.) 246.78 16.14

 PROFIT & LOSS

COMPANY NAME DMART SPENCERS RETAIL LTD.

GROSS SALES (₹ CR.) 16,480.78 2,012.03

OPERATING EXPENSES (₹
0 0
CR.)

PBIDT (₹ CR.) 16,494.01 1,963.63

OTHER INCOME (₹ CR.) 72.65 8.89

OPERATING PROFIT (₹
1,409.96 -18.1
CR.)

INTEREST EXPENDED (₹
59.42 57.29
CR.)

DEPRECIATION (₹ CR.) 154.65 33.19

PROFIT BEFORE TAX (₹

16,494.01 1,963.63
CR.)

PROVISION FOR TAX (₹

0 0
CR.)

PAT (₹ CR.) 784.66 -,108.58

EQUITY DIVIDEND (%) 0 0

EARNINGS PER SHARE (₹) 12,57,000.00 -3,63,000.00