Britannia Industries Limited has posted a net profit of Rs 588 m for the year ended March 31, 2001. This is up 11.2% as compared to Rs 529 m net profit declared by the company last fiscal (excluding extraordinary expenses). The company's turnover saw a 17.5% growth during the period.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Effective tax rate (%)
No. of Shares (eoy) (m)
Diluted earnings per share*
Current P/e ratio (incl. extraordinary income)
Current P/e ratio (excl. extraordinary income)
However, Britannia earned an extraordinary income of Rs 168 m in the form of reversal of previous years processing charges no longer required. The company also incurred VRS expenses worth Rs 41 m during the year (Rs 19 m in FY00), thus taking Britannia's net extraordinary income to Rs 117 m in FY01. If we include this to the company's bottomline, then Britannia's net profit shows a growth of 38%.
The effective tax rate of the company went up by 860 basis points to 42.5%, which seems to have hampered the company's profitability.
The company has acquired the trade mark 'KWALITY', and several other trademarks owned by Kwality Biscuits of Bangalore along with copyrights and designs in labels for a consideration of Rs 300 m. Britannia has also agreed in principle to acquire 49% equity of Kwality Biscuits. This transaction is expected to be completed during FY02.
The company has recommended a dividend of Rs 5.5 per share. At the current price of Rs 642 the stock trades at a P/E of 30 x its FY01 earnings.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407