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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of BRITANNIA?

BRITANNIA currently trades at Rs 3,701.6 per share. You can check out the latest share price performance of BRITANNIA here...

What was the revenue of BRITANNIA in FY18? How does it compare to earlier years?

The revenues of BRITANNIA stood at Rs 100,043 m in FY18, which was up 12.0% compared to Rs 89,346 m reported in FY17.

BRITANNIA's revenue has grown from Rs 68,301 m in FY14 to Rs 100,043 m in FY18.

Over the past 5 years, the revenue of BRITANNIA has grown at a CAGR of 10.0%.

What was the net profit of BRITANNIA in FY18? How does it compare to earlier years?

The net profit of BRITANNIA stood at Rs 10,041 m in FY18, which was up 13.5% compared to Rs 8,843 m reported in FY17.

This compares to a net profit of Rs 8,244 m in FY16 and a net profit of Rs 6,885 m in FY15.

Over the past 5 years, BRITANNIA net profit has grown at a CAGR of 26.2%.

What does the cash flow statement of BRITANNIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BRITANNIA reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 12,488 m as compared to Rs 4,413 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -9,563 m as compared to Rs -1,499 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -2,318 m as compared to Rs -2,951 m in FY17.

Here's the cash flow statement of BRITANNIA for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations6,7155,8459,5924,41312,488
From Investments-2,456-4,503-7,052-1,499-9,563
From Financial Activity-3,573-1,814-2,462-2,951-2,318
Net Cashflow685-47279-37605

What does the Key Ratio analysis of BRITANNIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BRITANNIA reveals:

  • Operating profit margins witnessed a fall and down at 15.3% in FY18 as against 14.6% in FY17.
  • Net profit margins grew from 10.1% in FY17 to 10.2% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of BRITANNIA for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)9.213.114.914.615.3
Net Profit Margin (%)5.89.010.110.110.2
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of BRITANNIA

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