GILLETTE INDIA 2019-20 Annual Report Analysis

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GILLETTE INDIA 2019-20 Annual Report Analysis
Wed, 27 Oct

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 13.5% in FY to 13.6% 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 % 13.5 13.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 27% and stood at Rs 8 billion, while fixed assets fell 2% 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 7,648 27.2
Fixed Assets Rs m 5,771 5,640 -2.3
Total Assets Rs m 11,782 13,288 12.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 5,700.0, stands at 59.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 22.7 times, while the price to sales ratio stands at 12.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 66.0 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 61.8 66.0
TTM P/E ratio x 59.8 59.8
Price / Book Value ratio x 29.7 22.7
Market Cap Rs m 185,734 185,734
Dividends per share (Unadj.) Rs 44.0 49.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 36 41
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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 up from Rs 5,294.0 to Rs 5,700.0, registering a gain of Rs 406.0 or around 7.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 14,303.6 (up 0.1%). Over the last one year it has moved up from 11,196.6 to 14,303.6, a gain of 3,107 points (up 27.7%).

Overall, the S&P BSE SENSEX is up 52.3% over the year.

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

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