Britannia Industries Ltd | Ratios - Key Metrics | Thomson Reuters Eikon                                21-Jul-2020 19:13

Ratios - Key Metrics

Annual Standardised in Millions of Indian Rupees, Consolidated
2012 2013 2014 2015
Earnings Quality Score 79 80 100 99
Profitability
Gross Margin 35.4% 37.6% 39.4% 40.0%
EBITDA Margin 5.7% 6.8% 9.1% 11.3%
Operating Margin 4.5% 5.6% 7.9% 9.1%
Pretax Margin 4.9% 5.8% 8.2% 12.1%
Effective Tax Rate 25.1% 27.5% 30.5% 27.5%
Net Margin 3.6% 4.2% 5.7% 8.8%
DuPont/Earning Power
Asset Turnover 3.17 3.32 3.46 3.20
x Pretax Margin 4.9% 5.8% 8.2% 12.1%
Pretax ROA 15.4% 19.2% 28.5% 38.6%
x Leverage (Assets/Equity) 4.50 3.38 2.64 1.89
Pretax ROE 72.5% 74.1% 84.0% 83.0%
x Tax Complement 0.75 0.72 0.69 0.73
ROE 54.3% 53.7% 58.3% 60.2%
x Earnings Retention 0.49 0.61 0.64 0.72
Reinvestment Rate 26.7% 32.6% 37.1% 43.4%
Liquidity
Quick Ratio 0.45 0.39 0.50 0.99
Current Ratio 0.80 0.68 0.84 1.34
Times Interest Earned - - 65.7 188.0
Cash Cycle (Days) 20.1 18.5 10.8 6.6
Leverage
Assets/Equity 4.50 3.38 2.64 1.89
Debt/Equity 1.48 0.68 0.19 0.09
% LT Debt to Total Capital 6.1% 2.9% 3.0% 2.1%
(Total Debt - Cash) / EBITDA 1.02 0.65 0.08 -
Operating
A/R Turnover 26.7 21.2 20.8 17.3
Avg. A/R Days 13.7 17.3 17.6 21.2
Inv Turnover 9.1 9.6 10.5 10.9
Avg. Inventory Days 40.2 38.2 34.7 33.5
Avg. A/P Days 33.8 37.0 41.5 48.1
Fixed Asset Turnover 10.38 8.81 8.63 9.82
WC / Sales Growth (3.1%) (4.4%) 0.8% 5.8%
Bad Debt Allowance (% of A/R) 4.0% 3.5% 1.5% 0.9%
ROIC 25.4% 41.9% 53.5% 57.1%
Revenue per Employee (INR) INR27,557,749.3 INR29,616,519.0 INR30,212,893.4 INR31,490,362.7

TREND 2012 2013 2014 2015

Earnings Quality Score 100.00% 101.27% 126.58% 125.32%
Profitability
Gross Margin 100.00% 106.21% 111.30% 112.99%
EBITDA Margin 100.00% 119.30% 159.65% 198.25%
Operating Margin 100.00% 124.44% 175.56% 202.22%
Pretax Margin 100.00% 118.37% 167.35% 246.94%
Effective Tax Rate 100.00% 109.56% 121.51% 109.56%
Net Margin 100.00% 116.67% 158.33% 244.44%
DuPont/Earning Power
Asset Turnover 100.00% 104.73% 109.15% 100.95%
x Pretax Margin 100.00% 118.37% 167.35% 246.94%
Pretax ROA 100.00% 124.68% 185.06% 250.65%
x Leverage (Assets/Equity) 100.00% 75.11% 58.67% 42.00%
Pretax ROE 100.00% 102.21% 115.86% 114.48%
x Tax Complement 100.00% 96.00% 92.00% 97.33%
ROE 100.00% 98.90% 107.37% 110.87%
x Earnings Retention 100.00% 124.49% 130.61% 146.94%
Reinvestment Rate 100.00% 122.10% 138.95% 162.55%
Liquidity
Quick Ratio 100.00% 86.67% 111.11% 220.00%
Current Ratio 100.00% 85.00% 105.00% 167.50%
Times Interest Earned
Cash Cycle (Days) 100.00% 92.04% 53.73% 32.84%
Leverage
Assets/Equity 100.00% 75.11% 58.67% 42.00%
Debt/Equity 100.00% 45.95% 12.84% 6.08%
% LT Debt to Total Capital 100.00% 47.54% 49.18% 34.43%
(Total Debt - Cash) / EBITDA 100.00% 63.73% 7.84% #VALUE!
Operating
A/R Turnover 100.00% 79.40% 77.90% 64.79%
Avg. A/R Days 100.00% 126.28% 128.47% 154.74%
Inv Turnover 100.00% 105.49% 115.38% 119.78%
Avg. Inventory Days 100.00% 95.02% 86.32% 83.33%
Avg. A/P Days 100.00% 109.47% 122.78% 142.31%
Fixed Asset Turnover 100.00% 84.87% 83.14% 94.61%
WC / Sales Growth 100.00% 141.94% -25.81% -187.10%
Bad Debt Allowance (% of A/R) 100.00% 87.50% 37.50% 22.50%
ROIC 100.00% 164.96% 210.63% 224.80%
Revenue per Employee (INR)
 2016 2017 2018 2019 2020 Industry Avg.
63 38 93 74 72 69

39.0% 36.9% 37.8% 40.3% 39.9% 35.1% 

14.2% 13.7% 15.0% 15.7% 15.9% 15.9% 
12.9% 12.5% 13.6% 14.2% 14.2% 11.5% 
14.1% 14.0% 15.2% 16.0% 15.9% 11.8% 
32.5% 32.2% 33.9% 34.6% 24.4% 17.1% 
9.6% 9.5% 10.0% 10.5% 12.0% 8.6% 

2.74 2.45 2.15 1.93 1.65 0.98 

14.1% 14.0% 15.2% 16.0% 15.9% 11.8% 
38.7% 34.3% 32.7% 30.9% 26.2% 11.7% 
1.67 1.52 1.52 1.47 1.78 1.88 
68.2% 54.5% 49.8% 46.2% 42.6% 23.0% 
0.68 0.68 0.66 0.66 0.76 0.78 
46.1% 36.9% 32.9% 30.3% 32.4% 19.3% 
0.71 0.70 0.70 0.63 0.40 0.60 
32.7% 25.9% 23.1% 18.9% 13.0% 11.4% 

0.94 1.09 1.43 1.46 1.13 0.93 

1.30 1.74 1.91 1.90 1.43 1.44 
516.5 535.4 251.4 199.2 22.9 12.3 
8.8 31.6 42.6 37.6 38.7 50.0 

1.67 1.52 1.52 1.47 1.78 1.88 

0.06 0.05 0.06 0.04 0.35 0.13 
1.7% 1.1% 2.3% 1.4% 13.0% 7.2% 
- - - - - 0.31 

13.3 9.8 8.1 7.1 6.6 14.3 

27.5 37.4 45.2 51.8 55.9 25.5 
11.5 8.8 7.5 8.1 8.7 5.8 
31.7 41.7 48.9 45.0 42.1 63.0 
50.5 47.5 51.5 59.2 59.3 43.2 
10.27 9.58 8.21 7.29 6.84 2.61 
3.3% 2.7% 5.1% 1.9% (2.4%) 0.2% 
 0.8% 0.5% 0.5% 0.4% 0.1% 2.1% 
44.4% 35.9% 31.9% 29.3% 29.0% - 
INR30,632,634.9 INR29,918,530.4 INR28,543,142.9 INR26,721,464.8 INR25,733,888.0 - 

2016 2017 2018 2019 2020

79.75% 48.10% 117.72% 93.67% 91.14%

110.17% 104.24% 106.78% 113.84% 112.71%

249.12% 240.35% 263.16% 275.44% 278.95%
286.67% 277.78% 302.22% 315.56% 315.56%
287.76% 285.71% 310.20% 326.53% 324.49%
129.48% 128.29% 135.06% 137.85% 97.21%
266.67% 263.89% 277.78% 291.67% 333.33%

86.44% 77.29% 67.82% 60.88% 52.05%

287.76% 285.71% 310.20% 326.53% 324.49%
251.30% 222.73% 212.34% 200.65% 170.13%
37.11% 33.78% 33.78% 32.67% 39.56%
94.07% 75.17% 68.69% 63.72% 58.76%
90.67% 90.67% 88.00% 88.00% 101.33%
84.90% 67.96% 60.59% 55.80% 59.67%
144.90% 142.86% 142.86% 128.57% 81.63%
122.47% 97.00% 86.52% 70.79% 48.69%

208.89% 242.22% 317.78% 324.44% 251.11%

162.50% 217.50% 238.75% 237.50% 178.75%

43.78% 157.21% 211.94% 187.06% 192.54%

37.11% 33.78% 33.78% 32.67% 39.56%

4.05% 3.38% 4.05% 2.70% 23.65%
27.87% 18.03% 37.70% 22.95% 213.11%
#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

49.81% 36.70% 30.34% 26.59% 24.72%

200.73% 272.99% 329.93% 378.10% 408.03%
126.37% 96.70% 82.42% 89.01% 95.60%
78.86% 103.73% 121.64% 111.94% 104.73%
149.41% 140.53% 152.37% 175.15% 175.44%
98.94% 92.29% 79.09% 70.23% 65.90%
-106.45% -87.10% -164.52% -61.29% 77.42%
20.00% 12.50% 12.50% 10.00% 2.50%
174.80% 141.34% 125.59% 115.35% 114.17%
Talking Points:-
1) Impressive Profitability Ratios.
2) Majority Ratios are better than that of the industry.
3) Some ratios decline as Britannia has employed debt in the FY 2019-20 which has contribut
4) Major concerns include: A) A/R days B) Asset Turnover B) Reinvestment Rate
Y 2019-20 which has contributed in the decreasing trens of the ratios.
investment Rate
 2016 2017 2018 2019 2020 2016
Net Margin 9.6% 9.5% 10.0% 10.5% 12.0% ROA 38.7%

Operating M 3.300% 3.000% 3.600% 3.700% 2.200% ROE 46.1%

Gross Margi 26.100% 24.400% 24.200% 26.100% 25.700%

45.0%
50.0%
40.0% 45.0%
35.0% 40.0%
30.0% 35.0%
25.0% 30.0%
25.0%
20.0% 20.0%
15.0% 15.0%
10.0% 10.0%
5.0% 5.0%
0.0%
0.0% 2016 2017 2018
2016 2017 2018 2019 2020
ROA ROE
Net Margin Operating Margin Gross Margin

Efficiency Ratio
2016
2016 2017 2018 2019 2020 Avg. A/R Days 27.50

Industry Av 1.44 1.44 1.44 1.44 1.44 Avg. Inventory Days 31.70
Current Rat 1.30 1.74 1.91 1.90 1.43 Avg. A/P Days 50.50
2.5
Cash Conversion Cycle 8.70
Asset Turnover 2.74
2

1.5
2016
1 Reinvestment Rate 32.70%
Dividend Payout Ratio 28.01%
0.5
35.00%
0
2016 2017 2018 2019 2020 30.00%
25.00%
Industry Avg. Current Ratio
20.00%
15.00%
10.00%
5.00%
0.00%
2016 2017 2018

Reinvestment Rate
 2017 2018 2019 2020 2016 2017
34.3% 32.7% 30.9% 26.2% Asset Turn 2.74 2.45
Industry
36.9% 32.9% 30.3% 32.4% Average 0.98 0.98

3.00

2.50

2.00

1.50

1.00

17 2018 2019 2020 0.50

ROA ROE -
2016 2017 2018 2019

Asset Turnover Industry Average

Industry
2017 2018 2019 2020 Average 2016 2017
37.40 45.20 51.80 55.90 25.50 Avg. A/R D 27.50 37.40
Industry
41.70 48.90 45.00 42.10 63.00 Average 25.50 25.50
47.50 51.50 59.20 59.30 43.20
60.00
31.60 42.60 37.60 38.70 50.00
2.45 2.15 1.93 1.65 0.98 50.00

40.00

30.00
2017 2018 2019 2020
25.90% 23.10% 18.90% 13.00% 20.00
32.65% 31.65% 31.09% 25.70% 10.00

-
2016 2017 2018 2019

Avg. A/R Days Industry Averag

2017 2018 2019 2020

Reinvestment Rate Dividend Payout Ratio

 2018 2019 2020
2.15 1.93 1.65

0.98 0.98 0.98

7 2018 2019 2020

et Turnover Industry Average

2018 2019 2020

45.20 51.80 55.90

25.50 25.50 25.50

17 2018 2019 2020

vg. A/R Days Industry Average