BRITANNIA 2020-21 Annual Report Analysis

Wed, 31 Mar

BRITANNIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BRITANNIA Income Statement Analysis

• Operating income during the year rose 13.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY21 as against 15.7% in FY20.
• Depreciation charges increased by 7.1% and finance costs increased by 44.2% YoY, respectively.
• Other income grew by 12.0% YoY.
• Net profit for the year grew by 32.8% YoY.
• Net profit margins during the year grew from 12.0% in FY20 to 14.1% in FY21.

BRITANNIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	115,996	131,361	13.2%
Other income	Rs m	2,794	3,129	12.0%
Total Revenues	Rs m	118,790	134,490	13.2%
Gross profit	Rs m	18,262	25,087	37.4%
Depreciation	Rs m	1,848	1,979	7.1%
Interest	Rs m	769	1,109	44.2%
Profit before tax	Rs m	18,439	25,128	36.3%
Tax	Rs m	4,507	6,630	47.1%
Profit after tax	Rs m	13,932	18,498	32.8%
Gross profit margin	%	15.7	19.1
Effective tax rate	%	24.4	26.4
Net profit margin	%	12.0	14.1

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BRITANNIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 36 billion as compared to Rs 26 billion in FY20, thereby witnessing an increase of 40.2%.
• Long-term debt down at Rs 7 billion as compared to Rs 8 billion during FY20, a fall of 2.4%.
• Current assets rose 20% and stood at Rs 44 billion, while fixed assets fell 14% and stood at Rs 36 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 80 billion as against Rs 78 billion during FY20, thereby witnessing a growth of 2%.

BRITANNIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	43,684	35,196	-19.4
Current Liabilities	Rs m	25,785	36,143	40.2
Long-term Debt	Rs m	7,661	7,478	-2.4
Total Liabilities	Rs m	78,227	79,991	2.3
Current assets	Rs m	36,750	44,197	20.3
Fixed Assets	Rs m	41,477	35,794	-13.7
Total Assets	Rs m	78,227	79,991	2.3

BRITANNIA Cash Flow Statement Analysis

• BRITANNIA's cash flow from operating activities (CFO) during FY21 stood at Rs 19 billion, an improvement of 24.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -22 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 662 million from the Rs 165 million net cash flows seen during FY20.

BRITANNIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	14,845	18,511	24.7%
Cash Flow from Investing Activities	Rs m	-15,316	4,613	-
Cash Flow from Financing Activities	Rs m	579	-22,437	-
Net Cash Flow	Rs m	165	662	300.2%

Current Valuations for BRITANNIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 76.9, an improvement from the EPS of Rs 57.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,628.1, stands at 47.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 24.8 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 38.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	482.4	546.3
TTM Earnings per share	Rs	57.9	76.9
Diluted earnings per share	Rs	57.8	76.8
Price to Cash Flow	x	41.1	38.1
TTM P/E ratio	x	46.5	47.2
Price / Book Value ratio	x	15.3	22.2
Market Cap	Rs m	666,626	780,332
Dividends per share (Unadj.)	Rs	35.0	170.0

Ratio Analysis for BRITANNIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 1.4x during FY20. 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 23.7x during FY21, from 25.0x during FY20. 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 52.6% during FY21, from 31.9% during FY21. 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 61.5% during FY21, from 37.4% during FY20. 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 24.5% during FY21, from 18.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.4	1.2
Debtors’ Days	Days	1	1
Interest coverage	x	25.0	23.7
Debt to equity ratio	x	0.2	0.2
Return on assets	%	18.8	24.5
Return on equity	%	31.9	52.6
Return on capital employed	%	37.4	61.5

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 2,689.7 to Rs 3,628.1, registering a gain of Rs 938.5 or around 34.9%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of BRITANNIA