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Britannia Industries- Q4FY21 Highlights | 4 Point Stock Analysis | Yadnya Investment Academy

Britannia Industries- Q4FY21 Highlights | 4 Point Stock Analysis | Yadnya Investment Academy

Published on 29 April 2021 Views 208 Comments 0

Britannia Industries Limited has announced its Quarterly Results for Q4FY21 on 27th April 2021. How did the company perform in the last quarter of the Financial Year 2020-21. To know, read this 4 point detailed analysis of the Quarterly Results of the company.

Introduction: Britannia Industries Analysis

One of India’s leading food companies in India, Britannia Industries have announced its Q4FY21 Results on Tuesday 27th April 2021. The Quarterly Result declared by the company for Q4FY21 didn’t meet the expectations of the market. Hence, we will be assessing the company’s quarterly results via 4 point analysis: Q4FY21 Results, Growing Rural Outreach, Key Highlights, and Valuation.

1) Q4FY21 Highlights: Britannia Industries Share Price

  • Revenue from Operations of the company has increased by 9.2% YoY from Rs. 2867.7 Cr. in Q4FY20 to Rs. 3,131 Cr. in Q4FY21. But, Quarter-on-Quarter, it has gone down by 1.1% from Rs. 3,166 Cr. in Q3FY21.

  • EBITDA of the company has gone down by 17.3% QoQ from Rs. 612 Cr. in the December Quarter of FY21 to Rs. 505 Cr. in Q4FY21. Year-on-Year, it has gone up by 11.3% from Rs. 454.3 Cr. in Q4FY20.

  • EBITDA Margin of Britannia in Q4FY21 stood at 16.1%, while it was 15.8% and 19.31% in Q4FY20 and Q3FY21, respectively. EBITDA Margins of the company are directly affected due to inflation in the raw materials.

  • Profit Before Tax (PBT) of the company has increased by 7.7% YoY from Rs. 457.3 Cr. in the last quarter of FY20 to Rs. 493 Cr. in Q4FY21. Sequentially, it has gone down by 19.7% from Rs. 614 Cr. in Q3FY21.

  • Net Profit of the Britannia is down by 3.3% YoY from Rs. 372.3 Cr. in Q4FY20 to Rs. 364 Cr. in Q4FY21. Sequentially, this has also gone down by 20.45%.

  • Net Profit Margin of Britannia stands at 11.5% in the quarter ended 31st March 2021. The same was 13% in Q4FY20 and 14.3% in the December Quarter of FY21.

Britannia Industries-Q3FY21 Results

Britannia Industries-Q3FY21 Results

FY21 Highlights: Britannia Industries Ltd. Share Price

  • On a Whole year basis, Revenue from Operations has grown by 13.24% from Rs. 11,600 Cr. in FY20 to Rs. 13,136 Cr. in FY21. Revenue Growth in FY20 was mere 4%.

  • While the EBITDA of the company has gone up by 36.15% from Rs. 1,843 Cr. in FY20 to Rs. 2,509 Cr. in FY21.

  • EBITDA Margins in the year have gone up by 3% yearly from 16% in FY20 to 19% in FY21.

  • Profit Before Tax (PBT) has increased from Rs. 1,844 Cr. in FY20 to Rs. 2,514 Cr. in FY21.

  • Net Profit (PAT) has increased from Rs. 1,399 Cr. in FY20 to Rs. 1,850 Cr. in FY21, amounting to 32.8% growth yearly.

Britannia Industries- FY21 Performance

Britannia Industries- FY21 Performance

2) Strong Rural Growth and Direct Reach: Britannia Industries

  • Rural Deals of Britannia have steadily increased over the last five years. But it came down to 19,300 Rural Dealers in March 2020, which has expanded to 23,500 as of March 2021.

  • Like other FMCG Companies in the market, Britannia Industries is trying to grab a healthy market share in the Rural Market.

  • Even the Gross Sales Value of the company has grown significantly over the years from Rs. 109 Cr. per month in FY16 to Rs.273 Cr. per month in FY21.

  • The company currently has 23.7 Lakh Outlets which was 14.9 Lakh in April 2020.

  • The trend in Rural Dealers, Gross Sales Value, and Outlets looks optimistic for the business.

Britannia Industries- Strong Rural Growth & Direct Reach

Britannia Industries- Strong Rural Growth & Direct Reach

3) Key Highlights: Britannia Industries Annual Report

  • The company has increased borrowings from Rs. 748 Cr. in FY20 to Rs. 1,339.4 Cr. in FY21 for new plants or expand their product category.

  • In FY21, Britannia has been able to develop a Cost Efficiency Program.

  • The company has added three new transformational digital products in Q4FY21, which are S4 HANA, Arteria, and Vendor Management System.

  • E-Commerce Business Growth has also increased by 4.1 times in FY21, which grew by one time and 1.9  times in FY19 and FY20, respectively.

  • The company has declared an Interim Dividend of Rs.62 per share for FY21

4) Valuation: Britannia Industries Share Value

  • Britannia Stock is trading at a PE Ratio of around 45.5 (as of 27/04/2021).

  • 1 Year Median PE, 3 Year Median PE, and 5 Year Median PE ratio are 50.4, 58.4, and 55.

  • Looking at the long-term averages of the valuation, Britannia Stock is trading at some discount.

  • Nestle India is the nearest competitor of Britannia Industries, which is trading at a premium valuation with a PE ratio of 74.9.

Britannia Industries- Valuation

Conclusion: Britannia Industries Growth

Britannia Industries have not presented a health quarterly results sequentially but has shown decent growth year-on-year on some parameter. The stock of Britannia is currently trading at a discount, and it may reach its Median PE with the presence of growth opportunity and optimistic view of the management. Capex Plans of the company also look strong. Looking at the prospects of the future and growth visibility, one should keep this stock on their radar but should invest with proper research and advice of their financial advisor.

 
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