BRITANNIA 2018-19 Annual Report Analysis

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BRITANNIA 2018-19 Annual Report Analysis
Mon, 16 Sep

BRITANNIA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BRITANNIA Income Statement Analysis

  • Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.8% in FY19 as against 15.3% in FY18.
  • Depreciation charges increased by 13.9% and finance costs increased by 19.8% YoY, respectively.
  • Other income grew by 24.1% YoY.
  • Net profit for the year grew by 15.1% YoY.
  • Net profit margins during the year grew from 10.0% in FY18 to 10.3% in FY19.

BRITANNIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 98,295 109,735 11.6%
Other income Rs m 1,664 2,065 24.1%
Total Revenues Rs m 99,959 111,799 11.8%
Gross profit Rs m 15,015 17,325 15.4%
Depreciation Rs m 1,421 1,619 13.9%
Interest Rs m 76 91 19.8%
Profit before tax Rs m 15,182 17,679 16.5%
Tax Rs m 5,142 6,125 19.1%
Profit after tax Rs m 10,040 11,555 15.1%
Gross profit margin % 15.3 15.8
Effective tax rate % 33.9 34.6
Net profit margin % 10.0 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BRITANNIA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 19 billion as compared to Rs 16 billion in FY18, thereby witnessing an increase of 12.3%.
  • Long-term debt down at Rs 619 million as compared to Rs 846 million during FY18, a fall of 26.8%.
  • Current assets rose 12% and stood at Rs 35 billion, while fixed assets rose 15% and stood at Rs 18 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 62 billion as against Rs 52 billion during FY18, thereby witnessing a growth of 20%.

BRITANNIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 34,062 42,533 24.9
 
Current Liabilities Rs m 16,480 18,514 12.3
Long-term Debt Rs m 846 619 -26.8
Total Liabilities Rs m 51,879 62,418 20.3
 
Current assets Rs m 31,513 35,263 11.9
Fixed Assets Rs m 15,504 17,906 15.5
Total Assets Rs m 51,879 62,418 20.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BRITANNIA Cash Flow Statement Analysis

  • BRITANNIA's cash flow from operating activities (CFO) during FY19 stood at Rs 12 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -9 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -491 million from the Rs 605 million net cash flows seen during FY18.

BRITANNIA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 12,488 11,558 -7.4%
Cash Flow from Investing Activities Rs m -9,563 -8,555 -
Cash Flow from Financing Activities Rs m -2,318 -3,527 -
Net Cash Flow Rs m 605 -491 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BRITANNIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 94.9, an improvement from the EPS of Rs 83.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,657.0, stands at 55.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 13.9 times, while the price to sales ratio stands at 5.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 48.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 818.7 901.5
TTM Earnings per share Rs 83.6 94.9
Diluted earnings per share Rs 41.8 48.1
Price to Cash Flow x 27.8 48.5
TTM P/E ratio x 27.8 55.7
Price / Book Value ratio x 14.8 13.9
Market Cap Rs m 318,993 638,513
Dividends per share (Unadj.) Rs 25.0 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BRITANNIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY19, from 1.9x during FY18. 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 195.5x during FY19, from 201.0x during FY18. 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 27.2% during FY19, from 29.5% during FY19. 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 41.2% during FY19, from 43.7% during FY18. 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 18.7% during FY19, from 19.5% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.9 1.9
Debtors’ Days Days 11 13
Interest coverage x 201.0 195.5
Debt to equity ratio x 0.0 0.0
Return on assets % 19.5 18.7
Return on equity % 29.5 27.2
Return on capital employed % 43.7 41.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 down from Rs 3,055.6 to Rs 2,657.0, registering a loss of Rs 398.6 or around 13.0%.

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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

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BRITANNIA Announces Quarterly Results (2QFY20); Net Profit Up 32.9% (Quarterly Result Update)

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For the quarter ended September 2019, BRITANNIA has posted a net profit of Rs 4 bn (up 32.9% YoY). Sales on the other hand came in at Rs 30 bn (up 6.2% YoY). Read on for a complete analysis of BRITANNIA's quarterly results.

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