BRITANNIA 2017-18 Annual Report Analysis

Sat, 31 Mar

BRITANNIA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

BRITANNIA Income Statement Analysis

• Operating income during the year rose 12.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.3% in FY18 as against 14.6% in FY17.
• Depreciation charges increased by 19.1% and finance costs increased by 39.3% YoY, respectively.
• Other income grew by 10.5% YoY.
• Net profit for the year grew by 13.5% YoY.
• Net profit margins during the year grew from 10.1% in FY17 to 10.2% in FY18.

BRITANNIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	87,841	98,379	12.0%
Other income	Rs m	1,505	1,664	10.5%
Total Revenues	Rs m	89,346	100,043	12.0%
Gross profit	Rs m	12,782	15,017	17.5%
Depreciation	Rs m	1,193	1,421	19.1%
Interest	Rs m	55	76	39.3%
Profit before tax	Rs m	13,040	15,184	16.4%
Tax	Rs m	4,197	5,142	22.5%
Profit after tax	Rs m	8,843	10,041	13.5%
Gross profit margin	%	14.6	15.3
Effective tax rate	%	32.2	33.9
Net profit margin	%	10.1	10.2

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BRITANNIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 16 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 22.5%.
• Long-term debt stood at Rs 846 million as compared to Rs 314 million during FY17, a growth of 169.3%.
• Current assets rose 35% and stood at Rs 32 billion, while fixed assets rose 15% and stood at Rs 20 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 52 billion as against Rs 41 billion during FY17, thereby witnessing a growth of 26%.

BRITANNIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	26,905	33,948	26.2
Current Liabilities	Rs m	13,454	16,480	22.5
Long-term Debt	Rs m	314	846	169.3
Total Liabilities	Rs m	40,857	51,654	26.4
Current assets	Rs m	23,392	31,513	34.7
Fixed Assets	Rs m	17,465	20,141	15.3
Total Assets	Rs m	40,857	51,654	26.4

BRITANNIA Cash Flow Statement Analysis

• BRITANNIA's cash flow from operating activities (CFO) during FY18 stood at Rs 12 billion, an improvement of 183.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 538.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 21% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 605 million from the Rs -37 million net cash flows seen during FY17.

BRITANNIA Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	4,413	12,488	183.0%
Cash Flow from Investing Activities	Rs m	-1,499	-9,563	-
Cash Flow from Financing Activities	Rs m	-2,951	-2,318	-
Net Cash Flow	Rs m	-37	605	-

Current Valuations for BRITANNIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 83.6, an improvement from the EPS of Rs 73.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,971.5, stands at 119.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 35.3 times, while the price to sales ratio stands at 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 43.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	732.0	819.4
TTM Earnings per share	Rs	73.7	83.6
Diluted earnings per share	Rs	36.7	41.7
Price to Cash Flow	x	81.2	43.9
TTM P/E ratio	x	92.1	119.3
Price / Book Value ratio	x	13.6	14.8
Market Cap	Rs m	365,936	502,886
Dividends per share (Unadj.)	Rs	11.0	12.5

Ratio Analysis for BRITANNIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY18, from 1.7x during FY17. 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 deteriorated and stood at 201.0x during FY18, from 240.3x during FY17. 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 declined and down at 29.6% during FY18, from 32.9% during FY18. 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 declined and down at 43.9% during FY18, from 48.1% during FY17. 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 declined and down at 19.6% during FY18, from 21.8% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.7	1.9
Debtors’ Days	Days	1	1
Interest coverage	x	240.3	201.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.8	19.6
Return on equity	%	32.9	29.6
Return on capital employed	%	48.1	43.9

To see how BRITANNIA has performed over the last 5 years, please visit here.

BRITANNIA Share Price Performance

Over the last one year, BRITANNIA share price has moved up from Rs 3,382.9 to Rs 4,971.5, registering a gain of Rs 1,588.6 or around 47.0%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for BRITANNIA and quarterly results for BRITANNIA)

Read: Latest Annual Report Analysis of BRITANNIA