INCOME STATEMENT

PARTICULARS Mar-18 Mar-19 Mar-20

INCOME
Revenue From Operations [Gross] 9,905.63 10,973.46 11,443.99
Less: Excise/Sevice Tax/Other Levies 76.11 0 0
Revenue From Operations [Net] 9,829.52 10,973.46 11,443.99
Other Operating Revenues 84.47 81.21 155.56
Total Operating Revenues 9,913.99 11,054.67 11,599.55
Other Income 166.37 206.45 279.4
Total Revenue 10,080.36 11,261.12 11,878.95
EXPENSES
Cost Of Materials Consumed 4,906.08 5,513.01 5,684.98
Purchase Of Stock-In Trade 1,194.72 1,103.63 1,189.92
Changes In Inventories Of FG,WIP And Stock-In Trade 6.3 -55.18 52.57
Employee Benefit Expenses 401.6 441.82 486.69
Finance Costs 7.59 9.09 76.9
Depreciation And Amortisation Expenses 142.07 161.88 184.81
Other Expenses 1,903.64 2,317.97 2,342.21
Total Expenses 8,562.00 9,492.22 10,018.08
Profit/Loss Before Exceptional, ExtraOrdinary Items And 1,518.36 1,768.90 1,860.87
Exceptional Items 0 0 -17.01
Profit/Loss Before Tax 1,518.36 1,768.90 1,843.86
Tax Expenses-Continued Operations
Current Tax 513.68 599.78 447.69
Deferred Tax 0.54 12.69 3.01
Total Tax Expenses 514.22 612.47 450.7
Profit/Loss After Tax And Before ExtraOrdinary Items 1,004.14 1,156.43 1,393.16
Profit/Loss From Continuing Operations 1,004.14 1,156.43 1,393.16
Profit/Loss For The Period 1,004.14 1,156.43 1,393.16
Minority Interest 0.27 3.66 9.03
Share Of Profit/Loss Of Associates -0.18 -0.97 0.44
Consolidated Profit/Loss After MI And Associates 1,004.23 1,159.12 1,402.63

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 84 48 58
Diluted EPS (Rs.) 84 48 58
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 317.91 360.45 360.48
Tax On Dividend 0 1.4 74.09
 Mar-21

12,883.04
0
12,883.04
253.1
13,136.14
312.87
13,449.01

6,502.33
1,160.89
-37.12
527.38
110.9
197.85
2,473.37
10,935.60
2,513.41
-0.61
2,512.80

657.12
5.9
663.02
1,849.78
1,849.78
1,849.78
13.31
0.81
1,863.90

77
77

2,839.66
0
 BALANCE SHEET

PARTICULARS Mar-18 Mar-19 Mar-20 Mar-21

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 24.01 24.03 24.05 24.09
TOTAL SHARE CAPITAL 24.01 24.03 24.05 24.09
Reserves and Surplus 3,382.22 4,209.29 4,344.37 3,495.47
TOTAL RESERVES AND SURPLUS 3,382.22 4,209.29 4,344.37 3,495.47
TOTAL SHAREHOLDERS FUNDS 3,406.23 4,253.25 4,402.83 3,547.66
Minority Interest 13.14 32.68 35.65 36.34
NON-CURRENT LIABILITIES
Long Term Borrowings 84.57 61.92 766.06 747.75
Deferred Tax Liabilities [Net] 0 3.87 12.69 8.69
Other Long Term Liabilities 27.14 27.24 46.54 54.07
Long Term Provisions 8.87 11.45 0 0
TOTAL NON-CURRENT LIABILITIES 120.58 104.48 825.29 810.51
CURRENT LIABILITIES
Short Term Borrowings 93.65 76.1 747.99 1,339.42
Trade Payables 994.09 1,140.51 1,047.00 1,314.75
Other Current Liabilities 381.26 438.29 509.77 572.63
Short Term Provisions 178.97 196.51 273.7 387.47
TOTAL CURRENT LIABILITIES 1,647.97 1,851.41 2,578.46 3,614.27
TOTAL CAPITAL AND LIABILITIES 5,187.92 6,241.82 7,842.23 8,008.78
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,209.43 1,550.31 1,730.84 1,648.51
Intangible Assets 7.97 7.62 8.37 8.54
Capital Work-In-Progress 202.82 101.24 39.55 116.52
FIXED ASSETS 1,420.22 1,659.17 1,778.76 1,773.57
Non-Current Investments 222.48 726.4 1,884.46 1,387.44
Deferred Tax Assets [Net] 22.57 13.75 19.56 9.66
Long Term Loans And Advances 134.24 19.02 202.95 74.58
Other Non-Current Assets 108.93 166.77 142.56 207.95
TOTAL NON-CURRENT ASSETS 2,036.64 2,715.48 4,167.26 3,589.10
CURRENT ASSETS
Current Investments 856.8 749.88 1,008.77 1,393.25
Inventories 652.79 781.38 740.96 1,091.49
Trade Receivables 304.6 394.24 320.36 257.27
Cash And Cash Equivalents 186.42 109.82 122.85 211.34
Short Term Loans And Advances 844.34 1,203.92 1,110.11 946.56
OtherCurrentAssets 306.33 287.1 371.92 519.77
TOTAL CURRENT ASSETS 3,151.28 3,526.34 3,674.97 4,419.68
TOTAL ASSETS 5,187.92 6,241.82 7,842.23 8,008.78
 CASH FLOW STATEMENT

PARTICULARS Mar-18
12 mths
Cash Flow
Cash From Operating Activities
Depreciation And Amortization - CF 1,420.7
Disposal/Sale of Assets —
Stock Based Compensation 86.4
Change in Inventories 87.6
Change in Accounts Receivable -1,252.2
Change in Accrued Expenses —
Change in Other Current Assets 821.5
Change in Other Current Liabilities 2,625.8
Cash Paid For Taxes -4,964.6
Total Cash Flows From Operations 12,487.7
Gain (Loss) On Sale of Investments and Mkt Sec -552.4
Total Cashflow From Ops Before Working Capital —
Gain (Loss) From The Sale Of Fixed Assets —
Interest Expense —
Interest Income - CF -1,040.3
Dividends Income 0.0
Profit Before Taxation And Minority Interest 15,183.6
Finance Costs 75.9
Loss/(Profit) On Sale Property Plant & Equip -4.3
Total Cash From Operating Activities 24,975.4
Cash From Investing Activities
Disposal of Fixed Assets —
Capital Expenditures —
Proceeds From Investments -5,373.7
Purchases of Investments —
Other Investing Activities -1,068.3
Additions To Fixed And Intangible Assets —
Proceeds From Sale Of Fixed & Intangible Asset —
Purchase Of Associates/Joint Ventures 0.0
Acquisition Of Properties/Equipment -4,229.3
Interest Received From Investing Activities 1,091.1
Dividend Received From Investing Activities 0.0
Proceeds From Sale Of Property Investment 17.6
Total Cash Flows From Investing -9,562.6
Cash from Financing Activities
Issuance of Common Stock 150.6
Effect of Exchange Rates On Cash —
Other Financing Activities 108.0
Net Change In Cash 607.6
Cash and Cash Equivalents (End of Period) 1,081.0
Cash and Cash Equivalents (Beg of Period) 473.4
Increase (Decrease) In Borrowings 672.5
Minority Interest - CF (Financing) —
Decrease In Borrowings —
Increase In Borrowings —
Dividend Paid Including Dividend Tax -3,173.8
Interest Paid From Financing Activities -74.8
Total Cash Flows From Financing -155.5
Source: Bloomberg
T

Mar-19 Mar-20 Mar-21

12 mths 12 mths 12 mths

1,618.8 1,848.1 1,978.5

— -898.8 -654.7
161.2 215.8 189.4
-1,272.1 429.9 -3,514.4
-866.7 788.5 614.0
— — —
109.0 -236.6 -1,708.2
2,004.9 292.1 4,047.1
-5,961.3 -5,032.5 -6,328.1
11,557.8 14,845.3 18,510.7
-638.5 — —
— — —
— — —
— — —
-1,367.7 -1,767.7 -2,346.6
— — —
17,689.0 18,438.6 25,128.0
90.9 769.0 1,109.0
-9.7 -1.1 -3.3
23,115.6 29,690.6 37,021.4

— 7.3 21.7
— -2,441.7 -2,420.7
-3,341.2 — —
— -13,266.3 1,788.2
-2,389.0 -891.7 2,889.1
— — —
— — —
— — —
-4,012.1 — —
1,168.8 1,276.2 2,334.3
— — —
18.2 — —
-8,555.3 -15,316.2 4,612.6

297.9 239.7 1,031.5

 — 56.9 -24.4
232.0 — —
-524.3 108.5 686.4
587.2 752.6 1,414.5
1,078.4 587.2 752.6
-419.1 — —
— 120.0 140.0
— -8,691.5 0.0
— 13,616.7 5,678.0
-3,543.8 -4,325.3 -28,237.5
-93.8 -359.9 -1,013.0
-2,385.5 2,104.9 -19,571.9
 Formula
I. PROFITABILITY RATIOS

1) Gross Profit ratio Gross Profit / Sales

2) Operating Profit Ratio EBIT/ Total Income

3) Net Profit Ratio PAT/ Sales

4) Cash Operating Margin EBITDA / Total Income

5) Earning per Share Ratio PAT / Number of Shares

1) Dividend Payout Ratio (Dividend + Dividend Tax) / PAT

2) Retention Ratio 1 – D/P Ratio

Dividend Per Share/ Current

3) Dividend Yield
Market Price
4) Dividend Rate Dividend / No. of Equity Shares
III. LIQUIDITY RATIO

1) Current Ratio Current Assets / Current Liabilities

2) Quick Ratio (Current Assets – Inventories) /
Current Liabilities

IV. CAPITAL STRUCTURE RATIO

1) Debt Equity Ratio Borrowed Funds / Shareholders’

Funds

2) Fixed Asset to Long Term Fixed Assets / Total Long Term

Debt Ratio Debts

3) Interest Coverage Ratio EBIT / Interest & Finance Charges

4) Debt Service Coverage Net Operating Income / Total Debt

Ratio Service

V. TURNOVER RATIOS/ ASSETS UTILIZATION RATIOS

1) Total Assets Turnover

Ratio Total Income / Total Assets

2) Fixed Asset Turnover

Ratio Total Income / Total Fixed Assets

3) Working Capital
Turnover Ratio Total Income / Working Capital

4) Current Assets Turnover Total Income / Total Current

Ratio Assets

5) Inventory turnover ratio Costs of Goods Sold / Inventories

6) Inventory average
holding period 365 / Inventory Turnover Ratio
7) Trade Receivable
Turnover Ratio    Sales / Trade Receivables

8) Average Collection 365 / Trade Receivables Turnover

Period Ratio

9) Trade Payable Turnover RPurchase/Trade payables

10) Average Payment

Period (365 * Trade Payables) / Purchases

Inventory average holding period +

11) Length of Cash Cycle Days Sales Outstanding - Average
Payment Period

VI. RETURN RATIO

1) Return on Assets EBIT (1-Tax Rate) / Total Assets

2) Return on Capital EBIT (1-Tax Rate) / ( Borrowed

Employed Funds + Shareholders’ Funds)

3) Return on Equity  PAT / Shareholders’ Funds

4) Dupont Analysis (PAT/Sales) x (Sales / Assets ) x

(Assets / Shareholders’ Funds)

PROFITABILITY RATIOS
I. PROFITABILITY RATIOS
1) Gross Profit ratio 2) Operating Profit Ratio
3) Net Profit Ratio 4) Cash Operating Margin

35% 38% 39% 24% 25%

38%
 I. PROFITABILITY RATIOS
1) Gross Profit ratio 2) Operating Profit Ratio
3) Net Profit Ratio 4) Cash Operating Margin

35% 38% 39% 24% 25%

38%

16% 20%
15% 16% 17% 16%

15% 16% 17% 20%

22% 24%
19% 19% 21% 23%

21
18

19

20

21

21
20

20

20

20

e
tl
ic
a

es
ar
ni

ni

ni

ni

N
M
an

an

an

an
it

it

it

it
Br

Br

Br

Br

CAPITAL STRUCTURE RATIOS

4) Debt Service Coverage Ratio

3) Interest Coverage Ratio

2) Fixed Asset to Long Term Debt Ratio

1) Debt Equity Ratio

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 00%
1
Column E Column F Column G
Column H
 LIQUIDIY RATIO
4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

1) Current Ratio Current Assets / Current Liabilities

2) Quick Ratio (Current Assets – Inventories) / Current Liabilities
 Fina
Britannia 2018 Britannia 2019 Britannia 2020 Britannia 2021

19% 19% 21% 23%

15% 16% 17% 20%

15% 16% 16% 20%

35% 38% 38% 39%

₹ 41.68 ₹ 48.00 ₹ 57.83 ₹ 76.79

0.32 0.31 0.31 1.52

0.68 0.69 0.69 -0.52

0.45% 0.51% 0.51% 4.04%

13.20 14.96 14.96 117.88

1.91 1.90 1.43 1.22

 1.52 1.48 1.14 0.92

0.02 0.01 0.17 0.21

16.79 26.80 2.32 2.37

201.05 195.60 25.20 23.66

18.10 27.32 2.52 3.29

1.94 1.80 1.51 1.68

7.10 6.79 6.68 7.58

49.70 111.23 300.35 115.42

3.20 3.19 3.23 3.04

5.84 5.68 6.38 5.01

62.49 64.26 57.24 72.79
 32.52 27.83 35.72 50.08

11.22 13.11 10.22 7.29

1.20 0.97 1.14 0.88

303.71 377.20 321.16 413.38

-230.00 -299.82 -253.70 -333.29

21% 18% 25%

33% 31% 28% 46%

29% 27% 32% 53%

29% 27% 32% 53%

RETURN
200%

180%

160%

140%

120%
 200%

180%

160%

140%

120%
27%
100%
29%
80% 27%

29%
60%
31%
40%
33%
20% 21%

0%

1) Return on Assets EBIT (1-Tax Rate) / Total Assets 2) Return on

3) Return on Equity  PAT / Shareholders’ Funds 4) Dupont A

60.00

50.00

40.00

30.00

20.00

10.00
0% 90% 00%
1

0.00
Total Income / Total Assets Total In
1) Total Assets Turnover Ratio 2) Fix
 0.00
Total Income / Total Assets Total In
1) Total Assets Turnover Ratio 2) Fix

Liabilities
 Financial Statement Analysis of Britannia
Marico 21 Nestle 21

22% 24%

17% 16%

24% 25%

₹ 8.57 ₹ 215.98

87.52 90.70

12.48 9.26

2.11 1.68
 1.45 1.11

0.05 0.02

45.85 18.13

56.14 20.39

141.38 3.40

2.05 6.63

6.69

2.65 4.22
137.74 86.49
23.64 91.89

77.51 93.67

75.64 -3.67

24% 28%

45% 104%

39% 16%

39% 16%

RETURN RATIO
 27% 32%

27% 32%

31%
28%

21% 18%

ax Rate) / Total Assets 2) Return on Capital Employed EBIT (1-Tax Rate) / ( Borrowed Funds + Shareholders’ Funds)
areholders’ Funds 4) Dupont Analysis (PAT/Sales) x (Sales / Assets ) x (Assets / Shareholders’ Funds)

TURNO

Total Income / Total Fixed Assets Total Income / Total Current Assets
2) Fixed Asset Turnover Ratio 4) Current Assets Turnover Ratio

Column E Colum
Total Income / Total Fixed Assets Total Income / Total Current Assets
2) Fixed Asset Turnover Ratio 4) Current Assets Turnover Ratio

Column E Colum
Statement Analysis of Britannia
Analys

Gross Profit Ratio shows how much a business is earning, taking into account the neede
reflects a higher efficiency of core operations, meaning it can still cover operating expe
the business.It has increased subsequently from 2018 till 2021 for Britannia.
The operating margin represents how efficiently a company is able to generate profit th
15% is considered good, so we can see that Britannia , Marico and Nestle are performin

It is the margin left for the shareholders after all the expenses—operating and nonoper
means that a company is more efficient at converting sales into actual profit. A good m
of thumb, a 10% net profit margin is considered average, a 20% margin is considered h
considerably well while Marico and Nestle are performing above average

cash flow ratio that measures cash from operating activities as a percentage of total sa
company's profitability and efficiency and its earnings quality.
EPS indicates how much money a company makes for each share of its stock and used
because investors will pay more for a company's shares. Britannia and Nestle's EPS is q

It indicates how much money a company is returning to shareholders versus how muc
(retained earnings). It has increased for Britannia because it has attracted many investo
The retention ratio is the portion of earnings kept back in a firm to grow the business a
established company it has decreasing retention ratio in the given years.
We have taken the close rate of 1-10-2021 of BSE i.e., 2920.2.It is the amount of mone
current stock price.It has increased subsequently in the given years.
Dividend rate of Britannia has increased significantly in 2021.

It tells investors and analysts how a company can maximize the current assets on its ba
has decreased in the subsequent years. Current ratio for Britannia, Marico and Nestle i
It is the company’s ability to instantly use its near-cash assets (assets that can be conve
the better a company's liquidity and financial health; the lower the ratio, the more like
drastically.

This ratio tells you how much debt you have per $1.00 of equity. A ratio of 0.5 means t
more debt than equity. The debt of Britannia increased in 2021. Also its Marico and Ne
The fixed-assets- to long-term-liabilities ratio is a way of measuring the solvency of a co
is why creditors are interested in this ratio. A low number indicating your fixed assets m
britannia in subsequent years.
The interest coverage ratio measures how well your company is able to pay its interest
expenses, while a lower number is a red flag that your interest expenses may be gettin
has better ratio than Britannia while Nestle has lower ratio than Britannia.
The debt-service coverage ratio (DSCR) is a measurement of a firm's available cash flow
has enough income to pay its debts.A debt service coverage ratio of 1 or above indicate
debt and interest payments. As a general rule of thumb, an ideal ratio is 2 or higher.

This ratio measures the efficiency of a company's assets in generating revenue or sales
good . Although it is is low for Britannia it improves in 2021. It is extremely high for Ma
It measures a company's ability to generate net sales from its fixed-asset investments.
assets to generate sales. It is extremely low for Marico and comparable for Nestle.
It measures the relationship between the funds used to finance a company's operation
profit.
Current Assets Turnover Ratio indicates that the current assets are turned over in the f
the capability of the organization to achieve maximum sales with the minimum investm
remained consistent for Britannia i the subsequent years.
It measures how fast inventory is moving and generating sales. Higher the ratio the mo
inventory management than Marico and Parle.
It is quite high for Marico in comparison to Britannia and Nestle. It has shown a hike in
 This ratio shows efficiency in collection of amount due from trade receivables. Higher t
Nestle and lower for Marico in comparison to Britannia.

It declined for Britannia in 2021

It shows no. of times creditors are turned over in relation to purchases. Ahigher tirnove

It is quite high for Britannia in comparison to Marico and Nestle.

The cash conversion cycle (CCC) is a metric that expresses the length of time (in days) t
resources into cash flows from sales. Britannia and Nestle have negative CCC. If your in
possible, you’ll have a negative cash conversion cycle. While Marico has positive CCC.

Return on assets (ROA) is an indicator of how profitable a company is relative to its tot
company's management is at using its assets to generate earnings. Higher the ROA the
ROA of Britannia as improved in 2021

Return on capital employed (ROCE) is a financial ratio that measures a company’s profi
has increased in 2021. ROCE of Nestle is quite high in comparison to Britannia and Nest

Return on equity (ROE) is calculated by dividing a company's net income by its shareho
profit creators and those that are profit burners. Britannia has higher ROE than Marico

A DuPont analysis is used to evaluate the component parts of a company's return on eq

contributing the most to the changes in ROE.

53%

53%
 53%

53%
32%

32%
46%

28%

25%
18%

mployed EBIT (1-Tax Rate) / ( Borrowed Funds + Shareholders’ Funds)

AT/Sales) x (Sales / Assets ) x (Assets / Shareholders’ Funds)

TURNOVER RATIO

tal Fixed Assets Total Income / Total Current Assets Costs of Goods Sold / Invent
urnover Ratio 4) Current Assets Turnover Ratio 5) Inventory turnover rati

Column E Column F Column G Column H

tal Fixed Assets Total Income / Total Current Assets Costs of Goods Sold / Invent
urnover Ratio 4) Current Assets Turnover Ratio 5) Inventory turnover rati

Column E Column F Column G Column H

urchase/Trade payables
ade Payable Turnover Ratio
urchase/Trade payables
ade Payable Turnover Ratio