BRITANNIA 2022-23 Annual Report Analysis

Sun, 6 Aug

BRITANNIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BRITANNIA Income Statement Analysis

• Operating income during the year rose 15.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.7% in FY23 as against 15.6% in FY22.
• Depreciation charges increased by 12.7% and finance costs increased by 17.2% YoY, respectively.
• Other income declined by 3.1% YoY.
• Net profit for the year grew by 52.8% YoY.
• Net profit margins during the year grew from 10.7% in FY22 to 14.2% in FY23.

BRITANNIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	141,363	163,006	15.3%
Other income	Rs m	2,228	2,159	-3.1%
Total Revenues	Rs m	143,591	165,164	15.0%
Gross profit	Rs m	22,003	32,119	46.0%
Depreciation	Rs m	2,005	2,259	12.7%
Interest	Rs m	1,443	1,691	17.2%
Profit before tax	Rs m	20,783	30,328	45.9%
Tax	Rs m	5,624	7,165	27.4%
Profit after tax	Rs m	15,160	23,163	52.8%
Gross profit margin	%	15.6	19.7
Effective tax rate	%	27.1	23.6
Net profit margin	%	10.7	14.2

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BRITANNIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 41 billion as compared to Rs 41 billion in FY22, thereby witnessing an decrease of -0.3%.
• Long-term debt stood at Rs 16 billion as compared to Rs 7 billion during FY22, a growth of 119.5%.
• Current assets rose 19% and stood at Rs 47 billion, while fixed assets rose 30% and stood at Rs 45 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 93 billion as against Rs 75 billion during FY22, thereby witnessing a growth of 24%.

BRITANNIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	25,581	35,343	38.2
Current Liabilities	Rs m	41,471	41,344	-0.3
Long-term Debt	Rs m	7,070	15,518	119.5
Total Liabilities	Rs m	74,757	92,955	24.3
Current assets	Rs m	39,823	47,462	19.2
Fixed Assets	Rs m	34,934	45,492	30.2
Total Assets	Rs m	74,757	92,955	24.3

BRITANNIA Cash Flow Statement Analysis

• BRITANNIA's cash flow from operating activities (CFO) during FY23 stood at Rs 25 billion, an improvement of 94.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -15 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -10 billion, an improvement of 54% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -92 million from the Rs -321 million net cash flows seen during FY22.

BRITANNIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	12,995	25,262	94.4%
Cash Flow from Investing Activities	Rs m	9,109	-15,171	-
Cash Flow from Financing Activities	Rs m	-22,458	-10,284	-
Net Cash Flow	Rs m	-321	-92	-

Current Valuations for BRITANNIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 96.2, an improvement from the EPS of Rs 62.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,798.3, stands at 47.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 32.7 times, while the price to sales ratio stands at 7.1 times.
• The company's price to cash flow (P/CF) ratio stood at 37.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	586.9	676.7
TTM Earnings per share	Rs	62.9	96.2
Diluted earnings per share	Rs	62.9	96.2
Price to Cash Flow	x	45.0	37.1
TTM P/E ratio	x	50.9	47.6
Price / Book Value ratio	x	33.9	26.7
Market Cap	Rs m	867,373	942,999
Dividends per share (Unadj.)	Rs	56.5	72.0

Ratio Analysis for BRITANNIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x during FY22. 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 improved and stood at 18.9x during FY23, from 15.4x during FY22. 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 65.5% during FY23, from 59.3% during FY23. 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 63.0% during FY23, from 68.1% during FY22. 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 26.7% during FY23, from 22.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.1
Debtors’ Days	Days	1	1
Interest coverage	x	15.4	18.9
Debt to equity ratio	x	0.3	0.4
Return on assets	%	22.2	26.7
Return on equity	%	59.3	65.5
Return on capital employed	%	68.1	63.0

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 3,688.8 to Rs 4,798.3, registering a gain of Rs 1,109.5 or around 30.1%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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