BRITANNIA 2018-19 Annual Report Analysis

Sun, 31 Mar

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 12.4% 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 15.7% 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 15.2% YoY.
• Net profit margins during the year grew from 10.2% in FY18 to 10.5% in FY19.

BRITANNIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	98,379	110,547	12.4%
Other income	Rs m	1,664	2,065	24.1%
Total Revenues	Rs m	100,043	112,611	12.6%
Gross profit	Rs m	15,017	17,334	15.4%
Depreciation	Rs m	1,421	1,619	13.9%
Interest	Rs m	76	91	19.8%
Profit before tax	Rs m	15,184	17,689	16.5%
Tax	Rs m	5,142	6,125	19.1%
Profit after tax	Rs m	10,041	11,564	15.2%
Gross profit margin	%	15.3	15.7
Effective tax rate	%	33.9	34.6
Net profit margin	%	10.2	10.5

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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 34% and stood at Rs 27 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 21%.

BRITANNIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	33,948	42,333	24.7
Current Liabilities	Rs m	16,480	18,514	12.3
Long-term Debt	Rs m	846	619	-26.8
Total Liabilities	Rs m	51,654	62,281	20.6
Current assets	Rs m	31,513	35,263	11.9
Fixed Assets	Rs m	20,141	27,017	34.1
Total Assets	Rs m	51,654	62,281	20.6

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	-

Current Valuations for BRITANNIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.1, an decline from the EPS of Rs 83.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,082.0, stands at 64.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.5 times, while the price to sales ratio stands at 6.7 times.
• The company's price to cash flow (P/CF) ratio stood at 88.4 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	819.4	460.0
TTM Earnings per share	Rs	83.6	48.1
Diluted earnings per share	Rs	41.7	48.0
Price to Cash Flow	x	104.5	88.4
TTM P/E ratio	x	119.3	64.2
Price / Book Value ratio	x	14.8	27.5
Market Cap	Rs m	502,886	1,165,916
Dividends per share (Unadj.)	Rs	12.5	15.0

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 195.6x 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 27.3% during FY19, from 29.6% 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 41.4% during FY19, from 43.9% 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 19.6% 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	1	1
Interest coverage	x	201.0	195.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.6	18.7
Return on equity	%	29.6	27.3
Return on capital employed	%	43.9	41.4

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 4,971.5 to Rs 3,082.0, registering a loss of Rs 1,889.5 or around 38.0%.

Overall, the S&P BSE SENSEX is up 16.3% 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