BRITANNIA 2021-22 Annual Report Analysis
Wed, 8 Jun

BRITANNIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BRITANNIA Income Statement Analysis

  • Operating income during the year rose 7.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY22 as against 19.1% in FY21.
  • Depreciation charges increased by 1.4% and finance costs increased by 30.1% YoY, respectively.
  • Other income declined by 28.8% YoY.
  • Net profit for the year declined by 18.0% YoY.
  • Net profit margins during the year declined from 14.1% in FY21 to 10.7% in FY22.

BRITANNIA Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 131,361 141,363 7.6%
Other income Rs m 3,129 2,228 -28.8%
Total Revenues Rs m 134,490 143,591 6.8%
Gross profit Rs m 25,087 22,005 -12.3%
Depreciation Rs m 1,979 2,005 1.4%
Interest Rs m 1,109 1,443 30.1%
Profit before tax Rs m 25,128 20,785 -17.3%
Tax Rs m 6,630 5,624 -15.2%
Profit after tax Rs m 18,498 15,162 -18.0%
Gross profit margin % 19.1 15.6
Effective tax rate % 26.4 27.1
Net profit margin % 14.1 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



LIVE NOW: Watch as We Reveal the Details of Top 3 Stocks for 2023... for FREE!

BRITANNIA Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 42 billion as compared to Rs 36 billion in FY21, thereby witnessing an increase of 15.2%.
  • Long-term debt down at Rs 7 billion as compared to Rs 7 billion during FY21, a fall of 5.4%.
  • Current assets fell 10% and stood at Rs 40 billion, while fixed assets fell 2% and stood at Rs 35 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 75 billion as against Rs 80 billion during FY21, thereby witnessing a fall of 7%.

BRITANNIA Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 35,196 25,581 -27.3
 
Current Liabilities Rs m 36,089 41,557 15.2
Long-term Debt Rs m 7,472 7,070 -5.4
Total Liabilities Rs m 79,991 74,639 -6.7
 
Current assets Rs m 44,195 39,704 -10.2
Fixed Assets Rs m 35,797 34,934 -2.4
Total Assets Rs m 79,991 74,639 -6.7
* 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 FY22 stood at Rs 13 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs 9 billion, an improvement of 109.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -22 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -321 million from the Rs 662 million net cash flows seen during FY21.

BRITANNIA Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 18,755 12,995 -30.7%
Cash Flow from Investing Activities Rs m 4,356 9,109 109.1%
Cash Flow from Financing Activities Rs m -22,425 -22,458 -
Net Cash Flow Rs m 662 -321 -
* 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 62.9, an decline from the EPS of Rs 76.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,363.1, stands at 53.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 31.7 times, while the price to sales ratio stands at 5.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 50.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 545.4 586.9
TTM Earnings per share Rs 76.8 62.9
Diluted earnings per share Rs 76.8 62.9
Price to Cash Flow x 42.7 50.5
TTM P/E ratio x 47.2 53.4
Price / Book Value ratio x 22.2 33.9
Market Cap Rs m 781,630 867,373
Dividends per share (Unadj.) Rs 157.5 56.5
* 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 1.0x during FY22, from 1.2x during FY21. 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 15.4x during FY22, from 23.7x during FY21. 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 59.3% during FY22, from 52.6% during FY22. 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 68.1% during FY22, from 61.5% during FY21. 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 22.2% during FY22, from 24.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.2 1.0
Debtors’ Days Days 1 1
Interest coverage x 23.7 15.4
Debt to equity ratio x 0.2 0.3
Return on assets % 24.5 22.2
Return on equity % 52.6 59.3
Return on capital employed % 61.5 68.1
* 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 down from Rs 3,600.4 to Rs 3,363.1, registering a loss of Rs 237.3 or around 6.6%.

Overall, the S&P BSE SENSEX is up 5.6% 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 3,845.0 per share. You can check out the latest share price performance of BRITANNIA here...

What was the revenue of BRITANNIA in FY22? How does it compare to earlier years?

The revenues of BRITANNIA stood at Rs 143,591 m in FY22, which was up 6.8% compared to Rs 134,490 m reported in FY21.

BRITANNIA's revenue has grown from Rs 100,043 m in FY18 to Rs 143,591 m in FY22.

Over the past 5 years, the revenue of BRITANNIA has grown at a CAGR of 9.5%.

What was the net profit of BRITANNIA in FY22? How does it compare to earlier years?

The net profit of BRITANNIA stood at Rs 15,162 m in FY22, which was down -18.0% compared to Rs 18,498 m reported in FY21.

This compares to a net profit of Rs 13,932 m in FY20 and a net profit of Rs 11,564 m in FY19.

Over the past 5 years, BRITANNIA net profit has grown at a CAGR of 10.9%.

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 decreased in FY22 and stood at Rs 12,995 m as compared to Rs 18,755 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs 9,109 m as compared to Rs 4,356 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -22,458 m as compared to Rs -22,425 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations12,48811,55814,84518,75512,995
From Investments-9,563-8,555-15,3164,3569,109
From Financial Activity-2,318-3,527579-22,425-22,458
Net Cashflow605-491165662-321

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 stood at 15.6% in FY22 as against 19.1% in FY21.
  • Net profit margins declined from 14.1% in FY21 to 10.7% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.3 as compared to 0.2 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)15.315.715.719.115.6
Net Profit Margin (%)10.210.512.014.110.7
Debt to Equity Ratio (x)0.00.00.20.20.3