BRITANNIA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.
BRITANNIA Income Statement Analysis
- Operating income during the year rose 9.5% on a year-on-year (YoY) basis.
- The company's operating profit increased by 17.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.1% in FY18 as against 14.1% in FY17.
- Depreciation charges and finance costs increased by 19.1% YoY and 39.3% YoY, respectively.
- Other income grew by 10.5% YoY.
- Net profit for the year grew by 13.5% YoY.
- Net profit margins during the year grew from 9.6% in FY17 to 10.0% in FY18.
BRITANNIA Income Statement 2017-18
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Net Sales | Rs m | 90,541 | 99,140 | 9.5% |
| Other income | Rs m | 1,505 | 1,664 | 10.5% |
| Total Revenues | Rs m | 92,046 | 100,804 | 9.5% |
| Gross profit | Rs m | 12,782 | 15,017 | 17.5% |
| Depreciation | Rs m | 1,193 | 1,421 | 19.1% |
| Interest | Rs m | 55 | 76 | 39.3% |
| Profit before tax | Rs m | 13,040 | 15,184 | 16.4% |
| Tax | Rs m | 4,197 | 5,142 | 22.5% |
| Profit after tax | Rs m | 8,846 | 10,040 | 13.5% |
| Gross profit margin | % | 14.1 | 15.1 | |
| Effective tax rate | % | 32.2 | 33.9 | |
| Net profit margin | % | 9.6 | 10.0 | |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
BRITANNIA Balance Sheet Analysis
- The company's current liabilities during FY18 stood at Rs 16 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 22.5%.
- Long-term debt stood at Rs 846 million as compared to Rs 314 million during FY17, a growth of 169.3%.
- Current assets rose 35% and stood at Rs 32 billion, while fixed assets rose 50% and stood at Rs 16 billion in FY18.
- Overall, the total assets and liabilities for FY18 stood at Rs 52 billion as against Rs 41 billion during FY17, thereby witnessing a growth of 26%.
BRITANNIA Balance Sheet as on March 2018
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Networth | Rs m | 26,964 | 34,062 | 26.3 |
| Current Liabilities | Rs m | 13,454 | 16,480 | 22.5 |
| Long-term Debt | Rs m | 314 | 846 | 169.3 |
| Total Liabilities | Rs m | 41,088 | 51,879 | 26.3 |
| Current assets | Rs m | 23,392 | 31,513 | 34.7 |
| Fixed Assets | Rs m | 10,354 | 15,504 | 49.7 |
| Total Assets | Rs m | 41,088 | 51,879 | 26.3 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
BRITANNIA Cash Flow Statement Analysis
- BRITANNIA's cash flow from operating activities (CFO) during FY18 stood at Rs 12 billion, an improvement of 183.0% on a YoY basis.
- Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 538.1% on a YoY basis.
- Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 21% on a YoY basis.
- Overall, net cash flows for the company during FY18 stood at Rs 608 million from the Rs -37 million net cash flows seen during FY17.
BRITANNIA Cash Flow Statement 2017-18
| Particulars | No. of months | 12 | 12 | % Change |
|---|---|---|---|---|
| Year Ending | Mar-17 | Mar-18 | ||
| Cash Flow from Operating Activities | Rs m | 4,413 | 12,488 | 183.0% |
| Cash Flow from Investing Activities | Rs m | -1,499 | -9,563 | - |
| Cash Flow from Financing Activities | Rs m | -2,951 | -2,318 | - |
| Net Cash Flow | Rs m | -37 | 608 | - |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Current Valuations for BRITANNIA
- The trailing twelve-month earnings per share (EPS) of the company stands at Rs 83.6, an improvement from the EPS of Rs 73.7 recorded last year.
- The price to earnings (P/E) ratio, at the current price of Rs 6,506.8, stands at 74.6 times its trailing twelve months earnings.
- The price to book value (P/BV) ratio at current price levels stands at 14.8 times, while the price to sales ratio stands at 5.1 times.
- The company's price to cash flow (P/CF) ratio stood at 68.1 times its end-of-year operating cash flow earnings.
Per Share Data/Valuations
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | |
|---|---|---|---|
| Sales per share (Unadj.) | Rs | 754.5 | 825.8 |
| TTM Earnings per share | Rs | 73.7 | 83.6 |
| Diluted earnings per share | Rs | 73.8 | 83.7 |
| Price to Cash Flow | x | 77.8 | 68.1 |
| TTM P/E ratio | x | 74.7 | 74.6 |
| Price / Book Value ratio | x | 13.6 | 14.8 |
| Market Cap | Rs m | 780,810 | 780,355 |
| Dividends per share (Unadj.) | Rs | 22.0 | 25.0 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Ratio Analysis for BRITANNIA
Solvency Ratios
Profitability Ratios
Current Ratio: The company's current ratio improved and stood at 1.9x during FY18, from 1.7x during FY17. 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 201.0x during FY18, from 240.3x during FY17. 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.
Return on Equity (ROE): The ROE for the company declined and down at 29.5% during FY18, from 32.8% during FY18. 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 43.7% during FY18, from 48.0% during FY17. 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 19.5% during FY18, from 21.7% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.
Key Ratio Analysis
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | |
|---|---|---|---|
| Current ratio | x | 1.7 | 1.9 |
| Debtors’ Days | Days | 7 | 11 |
| Interest coverage | x | 240.3 | 201.0 |
| Debt to equity ratio | x | 0.0 | 0.0 |
| Return on assets | % | 21.7 | 19.5 |
| Return on equity | % | 32.8 | 29.5 |
| Return on capital employed | % | 48.0 | 43.7 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 4,245.8 to Rs 6,506.8, registering a gain of Rs 2,261.0 or around 53.3%.
Overall, the S&P BSE SENSEX is up 19.4% over the year.
(To know more, check out historical annual results for BRITANNIA and quarterly results for BRITANNIA)
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