GILLETTE INDIA 2019-20 Annual Report Analysis

Tue, 30 Jun

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

GILLETTE INDIA Income Statement Analysis

• Operating income during the year fell 9.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.4% in FY as against 20.3% in FY.
• Depreciation charges increased by 7.0% and finance costs decreased by 30.7% YoY, respectively.
• Other income declined by 28.9% YoY.
• Net profit for the year declined by 9.0% YoY.
• Net profit margins during the year grew from 13.6% in FY to 13.7% in FY.

GILLETTE INDIA Income Statement 2019-20

No. of Mths Year Ending		12 Jun-19*	12 Jun-20*	% Change
Net Sales	Rs m	18,617	16,791	-9.8%
Other income	Rs m	161	114	-28.9%
Total Revenues	Rs m	18,777	16,905	-10.0%
Gross profit	Rs m	3,785	3,590	-5.1%
Depreciation	Rs m	477	511	7.0%
Interest	Rs m	79	54	-30.7%
Profit before tax	Rs m	3,391	3,140	-7.4%
Tax	Rs m	861	838	-2.7%
Profit after tax	Rs m	2,529	2,302	-9.0%
Gross profit margin	%	20.3	21.4
Effective tax rate	%	25.4	26.7
Net profit margin	%	13.6	13.7

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

GILLETTE INDIA Balance Sheet Analysis

• The company's current liabilities during FY down at Rs 4 billion as compared to Rs 4 billion in FY, thereby witnessing an decrease of -0.5%.
• Current assets rose 29% and stood at Rs 8 billion, while fixed assets fell 4% and stood at Rs 6 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 13 billion as against Rs 12 billion during FY, thereby witnessing a growth of 13%.

GILLETTE INDIA Balance Sheet as on June 2020

No. of Mths Year Ending		12 Jun-19*	12 Jun-20*	% Change
Networth	Rs m	7,734	9,043	16.9
Current Liabilities	Rs m	3,810	3,790	-0.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,782	13,288	12.8
Current assets	Rs m	6,012	7,738	28.7
Fixed Assets	Rs m	5,771	5,550	-3.8
Total Assets	Rs m	11,782	13,288	12.8

GILLETTE INDIA Cash Flow Statement Analysis

• GILLETTE INDIA's cash flow from operating activities (CFO) during FY stood at Rs 2 billion, an improvement of 67.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs -290 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY stood at Rs -1 billion, an improvement of 36% on a YoY basis.
• Overall, net cash flows for the company during FY stood at Rs 908 million from the Rs -952 million net cash flows seen during FY.

GILLETTE INDIA Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Jun-19	Jun-20
Cash Flow from Operating Activities	Rs m	1,342	2,252	67.8%
Cash Flow from Investing Activities	Rs m	-647	-290	-
Cash Flow from Financing Activities	Rs m	-1,647	-1,054	-
Net Cash Flow	Rs m	-952	908	-

Current Valuations for GILLETTE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 70.6, an decline from the EPS of Rs 77.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,979.1, stands at 70.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.9 times, while the price to sales ratio stands at 9.7 times.
• The company's price to cash flow (P/CF) ratio stood at 73.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Jun-19*	12 Jun-20*
Sales per share (Unadj.)	Rs	571.2	515.2
TTM Earnings per share	Rs	77.6	70.6
Diluted earnings per share	Rs	77.6	70.6
Price to Cash Flow	x	81.1	73.1
TTM P/E ratio	x	96.4	70.5
Price / Book Value ratio	x	29.7	22.7
Market Cap	Rs m	229,823	205,613
Dividends per share (Unadj.)	Rs	44.0	49.0

Ratio Analysis for GILLETTE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY, from 1.6x during FY. 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 58.7x during FY, from 44.2x during FY. 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 25.5% during FY, from 32.7% during FY. 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 35.3% during FY, from 44.9% during FY. 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 17.7% during FY, from 22.1% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Jun-19*	12 Jun-20*
Current ratio	x	1.6	2.0
Debtors’ Days	Days	358	414
Interest coverage	x	44.2	58.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	22.1	17.7
Return on equity	%	32.7	25.5
Return on capital employed	%	44.9	35.3

To see how GILLETTE INDIA has performed over the last 5 years, please visit here.

GILLETTE INDIA Share Price Performance

Over the last one year, GILLETTE INDIA share price has moved down from Rs 6,564.7 to Rs 5,468.3, registering a loss of Rs 1,096.4 or around 16.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,254.9 (up 5.8%). Over the last one year it has moved down from 11,741.5 to 10,254.9, a loss of 1,487 points (down 12.7%).

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Read: Latest Annual Report Analysis of GILLETTE INDIA