BRITANNIA 2019-20 Annual Report Analysis

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BRITANNIA 2019-20 Annual Report Analysis
Thu, 6 Aug

BRITANNIA has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BRITANNIA Income Statement Analysis

  • Operating income during the year rose 4.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY20 as against 15.8% in FY19.
  • Depreciation charges increased by 14.2% and finance costs increased by 746.0% YoY, respectively.
  • Other income grew by 35.3% YoY.
  • Net profit for the year grew by 20.6% YoY.
  • Net profit margins during the year grew from 10.3% in FY19 to 11.9% in FY20.

BRITANNIA Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 109,735 114,440 4.3%
Other income Rs m 2,065 2,794 35.3%
Total Revenues Rs m 111,799 117,234 4.9%
Gross profit Rs m 17,325 18,436 6.4%
Depreciation Rs m 1,619 1,848 14.2%
Interest Rs m 91 769 746.0%
Profit before tax Rs m 17,679 18,613 5.3%
Tax Rs m 6,125 4,507 -26.4%
Profit after tax Rs m 11,555 13,936 20.6%
Gross profit margin % 15.8 16.1
Effective tax rate % 34.6 24.2
Net profit margin % 10.3 11.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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BRITANNIA Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 26 billion as compared to Rs 19 billion in FY19, thereby witnessing an increase of 38.6%.
  • Long-term debt stood at Rs 8 billion as compared to Rs 619 million during FY19, a growth of 1137.2%.
  • Current assets rose 4% and stood at Rs 37 billion, while fixed assets rose 7% and stood at Rs 19 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 78 billion as against Rs 62 billion during FY19, thereby witnessing a growth of 26%.

BRITANNIA Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 42,533 44,028 3.5
 
Current Liabilities Rs m 18,514 25,653 38.6
Long-term Debt Rs m 619 7,661 1,137.2
Total Liabilities Rs m 62,418 78,422 25.6
 
Current assets Rs m 35,263 36,750 4.2
Fixed Assets Rs m 17,906 19,192 7.2
Total Assets Rs m 62,418 78,422 25.6
* 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 FY20 stood at Rs 15 billion, an improvement of 28.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -15 billion, an improvement of 79.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs 579 million, an improvement of 116% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 165 million from the Rs -491 million net cash flows seen during FY19.

BRITANNIA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 11,558 14,845 28.4%
Cash Flow from Investing Activities Rs m -8,555 -15,316 -
Cash Flow from Financing Activities Rs m -3,527 579 -
Net Cash Flow Rs m -491 165 -
* 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 58.0, an improvement from the EPS of Rs 48.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,861.1, stands at 55.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 15.1 times, while the price to sales ratio stands at 5.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 58.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 456.6 475.9
TTM Earnings per share Rs 48.1 58.0
Diluted earnings per share Rs 48.1 58.0
Price to Cash Flow x 70.4 58.2
TTM P/E ratio x 55.0 55.0
Price / Book Value ratio x 27.4 15.1
Market Cap Rs m 927,888 927,880
Dividends per share (Unadj.) Rs 15.0 35.0
* 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 1.4x during FY20, from 1.9x during FY19. 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 25.2x during FY20, from 195.5x during FY19. 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 31.7% during FY20, from 27.2% during FY20. 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 37.2% during FY20, from 41.2% during FY19. 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 18.8% during FY20, from 18.7% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.9 1.4
Debtors’ Days Days 13 10
Interest coverage x 195.5 25.2
Debt to equity ratio x 0.0 0.2
Return on assets % 18.7 18.8
Return on equity % 27.2 31.7
Return on capital employed % 41.2 37.2
* 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 up from Rs 2,548.9 to Rs 3,861.1, registering a gain of Rs 1,312.2 or around 51.5%.

Overall, the S&P BSE SENSEX is up 3.2% 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 (2QFY21); Net Profit Up 22.9% (Quarterly Result Update)

Oct 22, 2020 | Updated on Oct 22, 2020

For the quarter ended September 2020, BRITANNIA has posted a net profit of Rs 5 bn (up 22.9% YoY). Sales on the other hand came in at Rs 34 bn (up 12.1% YoY). Read on for a complete analysis of BRITANNIA's quarterly results.

BRITANNIA Announces Quarterly Results (4QFY20); Net Profit Up 26.4% (Quarterly Result Update)

Jun 5, 2020 | Updated on Jun 5, 2020

For the quarter ended March 2020, BRITANNIA has posted a net profit of Rs 4 bn (up 26.4% YoY). Sales on the other hand came in at Rs 29 bn (up 2.5% YoY). Read on for a complete analysis of BRITANNIA's quarterly results.

BRITANNIA 2018-19 Annual Report Analysis (Annual Result Update)

Sep 16, 2019 | Updated on Sep 16, 2019

Here's an analysis of the annual report of BRITANNIA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of BRITANNIA. Also includes updates on the valuation of BRITANNIA.

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