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BRITANNIA 2020-21 Annual Report Analysis
Wed, 31 Mar

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 12.0% in FY20 to 14.1% 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 % 12.0 14.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

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 3,628.1, stands at 47.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 24.8 times, while the price to sales ratio stands at 6.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 38.1 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 41.1 38.1
TTM P/E ratio x 46.5 47.2
Price / Book Value ratio x 15.3 22.2
Market Cap Rs m 666,626 780,332
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 2,689.7 to Rs 3,628.1, registering a gain of Rs 938.5 or around 34.9%.

Overall, the S&P BSE SENSEX is up 74.1% 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 4,913.0 per share. You can check out the latest share price performance of BRITANNIA here...

What was the revenue of BRITANNIA in FY21? How does it compare to earlier years?

The revenues of BRITANNIA stood at Rs 134,490 m in FY21, which was up 13.2% compared to Rs 118,790 m reported in FY20.

BRITANNIA's revenue has grown from Rs 89,346 m in FY17 to Rs 134,490 m in FY21.

Over the past 5 years, the revenue of BRITANNIA has grown at a CAGR of 10.8%.

What was the net profit of BRITANNIA in FY21? How does it compare to earlier years?

The net profit of BRITANNIA stood at Rs 18,498 m in FY21, which was up 32.8% compared to Rs 13,932 m reported in FY20.

This compares to a net profit of Rs 11,564 m in FY19 and a net profit of Rs 10,041 m in FY18.

Over the past 5 years, BRITANNIA net profit has grown at a CAGR of 20.3%.

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 FY21 and stood at Rs 18,511 m as compared to Rs 14,845 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 4,613 m as compared to Rs -15,316 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -22,437 m as compared to Rs 579 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations4,41312,48811,55814,84518,511
From Investments-1,499-9,563-8,555-15,3164,613
From Financial Activity-2,951-2,318-3,527579-22,437
Net Cashflow-37605-491165662

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 19.1% in FY21 as against 15.7% in FY20.
  • Net profit margins grew from 12.0% in FY20 to 14.1% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.2 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)14.615.315.715.719.1
Net Profit Margin (%)10.110.210.512.014.1
Debt to Equity Ratio (x)0.00.00.00.20.2

Read: Latest Annual Report Analysis of BRITANNIA

 

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