BURGER KING INDIA 2021-22 Annual Report Analysis

Tue, 23 Aug

BURGER KING INDIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BURGER KING INDIA Income Statement Analysis

• Operating income during the year rose 48.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 313.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.8% in FY22 as against 1.7% in FY21.
• Depreciation charges increased by 2.0% and finance costs decreased by 8.7% YoY, respectively.
• Other income declined by 34.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 28.1% in FY21 to 15.8% in FY22.

BURGER KING INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	10,040	14,903	48.4%
Other income	Rs m	341	224	-34.1%
Total Revenues	Rs m	10,380	15,127	45.7%
Gross profit	Rs m	172	714	313.9%
Depreciation	Rs m	2,289	2,336	2.0%
Interest	Rs m	1,044	954	-8.7%
Profit before tax	Rs m	-2,821	-2,352	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-2,821	-2,352	NA
Gross profit margin	%	1.7	4.8
Effective tax rate	%	0.0	0.0
Net profit margin	%	-28.1	-15.8

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BURGER KING INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 5 billion as compared to Rs 10 billion in FY21, thereby witnessing an decrease of -51.4%.
• Long-term debt down at Rs 877 million as compared to Rs 2 billion during FY21, a fall of 53.5%.
• Current assets rose 60% and stood at Rs 7 billion, while fixed assets rose 9% and stood at Rs 16 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 24 billion as against Rs 20 billion during FY21, thereby witnessing a growth of 21%.

BURGER KING INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	753	10,280	1,265.1
Current Liabilities	Rs m	10,329	5,019	-51.4
Long-term Debt	Rs m	1,888	877	-53.5
Total Liabilities	Rs m	19,634	23,821	21.3
Current assets	Rs m	4,662	7,462	60.1
Fixed Assets	Rs m	14,972	16,359	9.3
Total Assets	Rs m	19,634	23,821	21.3

BURGER KING INDIA Cash Flow Statement Analysis

• BURGER KING INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 692 million, an improvement of 44.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -11 billion, an improvement of 220.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 11 billion, an improvement of 212% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 989 million from the Rs 824 million net cash flows seen during FY21.

BURGER KING INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	480	692	44.0%
Cash Flow from Investing Activities	Rs m	-3,365	-10,776	-
Cash Flow from Financing Activities	Rs m	3,568	11,123	211.8%
Net Cash Flow	Rs m	824	989	20.1%

Current Valuations for BURGER KING INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.8, an improvement from the EPS of Rs -7.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 134.9, stands at -37.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at -4,474.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	26.2	30.2
TTM Earnings per share	Rs	-7.4	-4.8
Diluted earnings per share	Rs	-5.7	-4.8
Price to Cash Flow	x	-119.8	-4,474.8
TTM P/E ratio	x	-22.6	-37.1
Price / Book Value ratio	x	83.3	6.8
Market Cap	Rs m	62,722	70,254
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BURGER KING INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY22, from 0.5x during FY21. 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 improved and stood at -1.5x during FY22, from -1.7x during FY21. 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 improved and stood at -22.9% during FY22, from -374.6% during FY22. 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 improved and stood at -12.5% during FY22, from -67.3% during FY21. 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 improved and stood at -5.9% during FY22, from -9.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.5	1.5
Debtors’ Days	Days	3	3
Interest coverage	x	-1.7	-1.5
Debt to equity ratio	x	2.5	0.1
Return on assets	%	-9.0	-5.9
Return on equity	%	-374.6	-22.9
Return on capital employed	%	-67.3	-12.5

To see how BURGER KING INDIA has performed over the last 5 years, please visit here.

BURGER KING INDIA Share Price Performance

Over the last one year, BURGER KING INDIA share price has moved down from Rs 148.6 to Rs 134.9, registering a loss of Rs 13.7 or around 9.2%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for BURGER KING INDIA and quarterly results for BURGER KING INDIA)

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