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This is an entirely free service. No payments are to be made.Britannia Industries Limited declared its results for the second quarter of financial year 2014-15 (2QFY15). The company has reported 12.4% YoY growth in sales and a 13.2% YoY growth in net profits. Here is our analysis of the results.
(Rs m) | 2QFY14 | 2QFY15 | % change | 1HFY14 | 1HFY15 | % change |
Total income | 17,558 | 19,745 | 12.5% | 33073 | 37615 | 13.7% |
Expenditure | 15,949 | 17,544 | 10.0% | 30084 | 33717 | 12.1% |
Operating profit (EBITDA) | 1,609 | 2,201 | 36.8% | 2989 | 3898 | 30.4% |
EBITDA margin (%) | 9.2% | 11.1% | 2.0% | 9.0% | 10.4% | 1.3% |
Other income | 41 | 184 | 350.4% | 180 | 399 | 121.5% |
Interest | 10 | 11 | 4.8% | 53 | 21 | -60.8% |
Depreciation | 211 | 308 | 46.2% | 406 | 626 | 54.0% |
Profit before tax | 1,429 | 2,067 | 44.7% | 2,710 | 3,651 | 34.7% |
Exceptional items | - | 1,599 | - | 1,599 | ||
Tax | 451 | 964 | 113.6% | 837.2 | 1411.2 | 68.6% |
Profit after tax/(loss) | 977 | 1,462 | 49.6% | 1,873 | 2,599 | 38.8% |
Share of profit/(loss) of associates | (1) | (1) | (2) | (1) | ||
Minority interest | - | 4 | 0 | 4 | ||
Net profit/ (loss) | 976 | 2,705 | 177.0% | 1,872 | 3,841 | 105.2% |
Net profit margin (%) | 5.6% | 13.7% | 8.1% | 5.7% | 10.2% | 4.6% |
No. of shares (m) | 120 | |||||
Diluted earnings per share (Rs)* | 49.4 | |||||
Price to earnings ratio (x)* | 33.9 |
As a % of net sales | 2QFY14 | 2QFY15 | Change in basis points |
Total cost of goods | 59.9% | 60.3% | 48.4 |
Employee costs | 3.8% | 3.4% | -34.8 |
Conversion and other charges | 6.9% | 6.5% | -38.8 |
Advertisement costs | 8.8% | 7.3% | -156.6 |
Other expenditure | 11.5% | 11.3% | -16.8 |
At the price of Rs. 1674, the stock is trading at 30 times our estimated FY17 earnings. At current valuations, the stock is overvalued and therefore we re-iterate a SELL on the stock.
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