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Britannia net zooms 28% - Views on News from Equitymaster
Britannia Industries Limited, one of India's largest bakery products manufacturer, has reported a net profit of Rs 157 m in 3QFY01 (up 28% YoY). Net Sales increased by 18%, from Rs 2.7 bn in 3QFY00 to Rs 3.2 bn in 3QFY01. Other income declined by 59% to Rs 7 m during the period.
(Rs m)
3QFY00
3QFY01
Change
9m FY00
9m FY01
Change
Sales Turnover
2,710
3,196
17.9%
8,630
10,035
16.3%
Other Income
17
7
-58.8%
65
56
-13.8%
Total expenditure
2,477
2,886
16.5%
7,971
9,181
15.2%
Operating Profit (EBDIT)
233
310
33.0%
659
854
29.6%
Operating Profit Margin (%)
8.6%
9.7%
7.6%
8.5%
Interest
18
23
27.8%
57
64
12.3%
Depreciation
44
49
11.4%
125
141
12.8%
Profit before Tax & extraordinary income
188
245
30.3%
542
705
30.1%
Extraordinary income (net)
-7
-11
-12
50
Tax
58
77
32.8%
173
250
44.5%
Profit after Tax/(Loss)
123
157
27.6%
357
505
41.5%
Net profit margin (%)
4.5%
4.9%
4.1%
5.0%
No. of Shares (eoy) (m)
18.6
27.9
18.6
27.9
Diluted number of shares outstd. (m)
27.9
27.9
27.9
27.9
Earnings per share*
17.1
24.1
*(annualised)
Current P/e ratio
32.1
Higher sales in Britannia's bakery and dairy products contributed to the rise of 18% in its net sales. The company's consolidated nine month results are even more encouraging. On a nine month basis, the company's turnover improved by 16% YoY and its bottomline surged 42% to Rs 505 m.
This jump in the 9 month results is because of a huge extraordinary write back of Rs 68 m in 2QFY01. If however, we exclude this extraordinary income, the company's net profit in real terms is up by only 23% on a nine month consolidated basis.
The stock trades at a P/e multiple of 32 times its annualised nine month FY01 earnings. The company's consistent growth in turnover and bottomline is likely to keep the shine on this stock in the days to come.
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Britannia declared results for the quarter ended September 2015 recently. While revenues were up by 12% YoY for the quarter, profits came in lower by 20% YoY.
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