BRITANNIA 2020-21 Annual Report Analysis

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BRITANNIA 2020-21 Annual Report Analysis
Mon, 15 Nov

BRITANNIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BRITANNIA Income Statement Analysis

  • Operating income during the year rose 13.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 37.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY21 as against 15.7% in FY20.
  • Depreciation charges increased by 7.1% and finance costs increased by 44.2% YoY, respectively.
  • Other income grew by 12.0% YoY.
  • Net profit for the year grew by 32.8% YoY.
  • Net profit margins during the year grew from 11.7% in FY20 to 13.8% in FY21.

BRITANNIA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 115,996 131,361 13.2%
Other income Rs m 2,794 3,129 12.0%
Total Revenues Rs m 118,790 134,490 13.2%
Gross profit Rs m 18,262 25,087 37.4%
Depreciation Rs m 1,848 1,979 7.1%
Interest Rs m 769 1,109 44.2%
Profit before tax Rs m 18,439 25,128 36.3%
Tax Rs m 4,507 6,630 47.1%
Profit after tax Rs m 13,932 18,498 32.8%
Gross profit margin % 15.7 19.1
Effective tax rate % 24.4 26.4
Net profit margin % 11.7 13.8
* 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 FY21 stood at Rs 36 billion as compared to Rs 26 billion in FY20, thereby witnessing an increase of 40.2%.
  • Long-term debt down at Rs 7 billion as compared to Rs 8 billion during FY20, a fall of 2.4%.
  • Current assets rose 20% and stood at Rs 44 billion, while fixed assets fell 14% and stood at Rs 36 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 80 billion as against Rs 78 billion during FY20, thereby witnessing a growth of 2%.

BRITANNIA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 43,684 35,196 -19.4
 
Current Liabilities Rs m 25,785 36,143 40.2
Long-term Debt Rs m 7,661 7,478 -2.4
Total Liabilities Rs m 78,227 79,991 2.3
 
Current assets Rs m 36,750 44,197 20.3
Fixed Assets Rs m 41,477 35,794 -13.7
Total Assets Rs m 78,227 79,991 2.3
* 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 FY21 stood at Rs 19 billion, an improvement of 24.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -22 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 662 million from the Rs 165 million net cash flows seen during FY20.

BRITANNIA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 14,845 18,511 24.7%
Cash Flow from Investing Activities Rs m -15,316 4,613 -
Cash Flow from Financing Activities Rs m 579 -22,437 -
Net Cash Flow Rs m 165 662 300.2%
* 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 76.9, an improvement from the EPS of Rs 57.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,686.5, stands at 56.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 22.2 times, while the price to sales ratio stands at 5.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 43.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 482.4 546.3
TTM Earnings per share Rs 57.9 76.9
Diluted earnings per share Rs 57.8 76.8
Price to Cash Flow x 56.2 43.4
TTM P/E ratio x 56.1 56.2
Price / Book Value ratio x 15.3 22.2
Market Cap Rs m 886,486 887,961
Dividends per share (Unadj.) Rs 35.0 170.0
* 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 deteriorated and stood at 1.2x during FY21, from 1.4x during FY20. 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 23.7x during FY21, from 25.0x during FY20. 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 52.6% during FY21, from 31.9% during FY21. 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 improved and stood at 61.5% during FY21, from 37.4% during FY20. 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 24.5% during FY21, from 18.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.4 1.2
Debtors’ Days Days 1 1
Interest coverage x 25.0 23.7
Debt to equity ratio x 0.2 0.2
Return on assets % 18.8 24.5
Return on equity % 31.9 52.6
Return on capital employed % 37.4 61.5
* 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 3,528.5 to Rs 3,686.5, registering a gain of Rs 158.1 or around 4.5%.

Overall, the S&P BSE SENSEX is up 39.2% 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 (4QFY21); Net Profit Down 3.4% (Quarterly Result Update)

Jul 9, 2021 | Updated on Jul 9, 2021

For the quarter ended March 2021, BRITANNIA has posted a net profit of Rs 4 bn (down 3.4% YoY). Sales on the other hand came in at Rs 31 bn (up 9.2% YoY). Read on for a complete analysis of BRITANNIA's quarterly results.

BRITANNIA Announces Quarterly Results (3QFY21); Net Profit Up 22.5% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, BRITANNIA has posted a net profit of Rs 5 bn (up 22.5% YoY). Sales on the other hand came in at Rs 32 bn (up 6.1% YoY). Read on for a complete analysis of BRITANNIA's quarterly results.

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