BRITANNIA 2023-24 Annual Report Analysis

Mon, 22 Jul

BRITANNIA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BRITANNIA Income Statement Analysis

• Operating income during the year rose 2.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.9% in FY24 as against 19.4% in FY23.
• Depreciation charges increased by 33.0% and finance costs decreased by 3.0% YoY, respectively.
• Other income declined by 17.0% YoY.
• Net profit for the year declined by 7.9% YoY.
• Net profit margins during the year declined from 14.2% in FY23 to 12.7% in FY24.

BRITANNIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	163,006	167,693	2.9%
Other income	Rs m	2,581	2,142	-17.0%
Total Revenues	Rs m	165,586	169,835	2.6%
Gross profit	Rs m	31,697	31,638	-0.2%
Depreciation	Rs m	2,259	3,005	33.0%
Interest	Rs m	1,691	1,640	-3.0%
Profit before tax	Rs m	30,328	29,135	-3.9%
Tax	Rs m	7,165	7,793	8.8%
Profit after tax	Rs m	23,163	21,342	-7.9%
Gross profit margin	%	19.4	18.9
Effective tax rate	%	23.6	26.7
Net profit margin	%	14.2	12.7

Don't Miss: Key Information for Long-term Investors

BRITANNIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 41 billion as compared to Rs 41 billion in FY23, thereby witnessing an decrease of -1.2%.
• Long-term debt down at Rs 9 billion as compared to Rs 16 billion during FY23, a fall of 41.7%.
• Current assets rose 3% and stood at Rs 48 billion, while fixed assets fell 8% and stood at Rs 42 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 90 billion as against Rs 93 billion during FY23, thereby witnessing a fall of 3%.

BRITANNIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	35,343	39,415	11.5
Current Liabilities	Rs m	41,344	40,844	-1.2
Long-term Debt	Rs m	15,518	9,047	-41.7
Total Liabilities	Rs m	92,955	90,297	-2.9
Current assets	Rs m	47,139	48,423	2.7
Fixed Assets	Rs m	45,492	41,810	-8.1
Total Assets	Rs m	92,955	90,297	-2.9

BRITANNIA Cash Flow Statement Analysis

• BRITANNIA's cash flow from operating activities (CFO) during FY24 stood at Rs 26 billion, an improvement of 1.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -28 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -92 million net cash flows seen during FY23.

BRITANNIA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	25,262	25,730	1.9%
Cash Flow from Investing Activities	Rs m	-15,171	4,755	-
Cash Flow from Financing Activities	Rs m	-10,284	-28,305	-
Net Cash Flow	Rs m	-92	2,193	-

Current Valuations for BRITANNIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 88.6, an decline from the EPS of Rs 96.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,851.0, stands at 65.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 35.8 times, while the price to sales ratio stands at 8.4 times.
• The company's price to cash flow (P/CF) ratio stood at 47.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	676.7	696.2
TTM Earnings per share	Rs	96.2	88.6
Diluted earnings per share	Rs	96.2	88.6
Price to Cash Flow	x	40.9	47.5
TTM P/E ratio	x	45.0	65.9
Price / Book Value ratio	x	26.7	29.4
Market Cap	Rs m	942,999	1,157,167
Dividends per share (Unadj.)	Rs	72.0	73.5

Ratio Analysis for BRITANNIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.1x during FY23. 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 18.8x during FY24, from 18.9x during FY23. 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 54.1% during FY24, from 65.5% during FY24. 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 63.5% during FY24, from 63.0% during FY23. 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 25.5% during FY24, from 26.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	1	1
Interest coverage	x	18.9	18.8
Debt to equity ratio	x	0.4	0.2
Return on assets	%	26.7	25.5
Return on equity	%	65.5	54.1
Return on capital employed	%	63.0	63.5

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 5,045.0 to Rs 5,851.0, registering a gain of Rs 806.0 or around 16.0%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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