Global FMCG Industry

Fast-moving consumer goods (FMCG) are products that are sold quickly and at relatively low cost.
Examples include non-durable goods and soft drinks, toiletries, over-the-counter drugs, processed foods
and other consumables. Fast moving consumer goods (FMCG) industry stood at USD 57.4 billion in 2017
vis-à-vis USD 49 billion in 2016, registering a sharp growth of over 17% during the year (as per IBEF). An
FMCG company has generated total revenue of $288 million and UK has the highest share, $87.9 million,
among all the countries.

Indian FMCG Industry

Fast moving consumer goods (FMCG) are the 4th largest sector in the Indian economy. There are three
main segments in the sector – food and beverages which accounts for 19 per cent of the sector,
healthcare which accounts for 31 per cent and household and personal care which accounts for the
remaining 50 per cent. The FMCG sector has grown from US$ 31.6 billion in 2011 to US$ 52.75 billion in
2017-18. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 27.86 per
cent to reach US$ 103.7 billion by 2020. The sector witnessed growth of 16.5 per cent in value terms
between June–September 2018; FMCG’s urban segment is expected to have a steady revenue growth at
8 per cent in FY19 and the rural segment is forecasted to contribute 15-16 per cent of total income in
FY19. However, in the last few years, the FMCG market has grown at a faster pace in rural India compared
with urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account
for 50 per cent of total rural spending.

Nestle India Private Ltd. And Britannia Industries Limited

As an Indian FMCG industry, we have taken Nestle and Britannia private limited for financial comparison
and analysis. NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a large
number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products
of global standards and is committed to long-term sustainable growth and shareholder satisfaction.
Britannia Industries is one of India’s leading food companies with a 100 year legacy and annual revenues
in excess of Rs. 9000 Cr. Britannia is among the most trusted food brands, and manufactures India’s
favourite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household names
in India. The company’s Dairy business contributes close to 5 per cent of revenue and Britannia dairy
products directly reach 100,000 outlets.
 Britannia Industries
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar 18 Mar-17 Mar-16 Mar-15 Mar-14
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 24.01 24 24 23.99 23.99
Total Share Capital 24.01 24 24 23.99 23.99
Reserves and Surplus 3,211.27 2,557.98 1,676.16 1,211.63 829.47
Total Reserves and Surplus 3,211.27 2,557.98 1,676.16 1,211.63 829.47
Total Shareholders Funds 3,235.28 2,581.98 1,700.16 1,235.62 853.46
NON-CURRENT LIABILITIES
Long Term Borrowings 0.3 0.44 0.49 0.73 0.34
Deferred Tax Liabilities [Net] 0 0 0 0 9.16
Other Long Term Liabilities 25.69 24.3 21.05 19.62 18.77
Government/Other Grants 0 0 2.86 3.57 4.28
Total Non-Current Liabilities 25.99 24.74 24.4 23.92 32.55
CURRENT LIABILITIES
Short Term Borrowings 9.01 0 0 0 0
Trade Payables 866.36 643.82 659.44 615.21 484.68
Other Current Liabilities 319.61 271.12 191.18 176.33 148.37
Short Term Provisions 171.05 174.48 492.08 410.91 325.38
Total Current Liabilities 1,366.03 1,089.42 1,342.70 1,202.45 958.43
Total Capital And Liabilities 4,627.30 3,696.14 3,067.26 2,461.99 1,844.44
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,008.31 812.47 626.13 513.25 529.81
Intangible Assets 7.97 11.6 13.26 12.7 15.85
Capital Work-In-Progress 200.28 29.77 74.5 48.22 97.22
Other Assets 14.99 15.25 0 0 0
Fixed Assets 1,231.55 869.09 713.89 574.17 642.88
Non-Current Investments 450.65 514.18 551.25 273.14 228.95
Deferred Tax Assets [Net] 8.68 6.43 22.71 21.11 0
Long Term Loans And Advances 86.74 116.52 324.45 127.15 100.43
Other Non-Current Assets 82.16 185.04 37.57 37.12 12.12
Total Non-Current Assets 1,859.78 1,691.26 1,649.87 1,032.69 984.38
CURRENT ASSETS
Current Investments 735.48 85.73 343.63 387.9 144.04
Inventories 594.58 602.61 384.01 345.74 366.86
Trade Receivables 230.32 126.41 106.7 70.98 53.69
Cash And Cash Equivalents 97.25 53.55 24.8 186.67 65.78
Short Term Loans And Advances 820.41 791.94 558.25 438.01 229.69
OtherCurrentAssets 289.48 344.64 0 0 0
Total Current Assets 2,767.52 2,004.88 1,417.39 1,429.30 860.06
Total Assets 4,627.30 3,696.14 3,067.26 2,461.99 1,844.44
Common Size Balance Sheet in %
Mar 18 Mar-17 Mar-16 Mar-15 Mar-14
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 0.52% 0.65% 0.78% 0.97% 1.30%
Total Share Capital 0.52% 0.65% 0.78% 0.97% 1.30%
Reserves and Surplus 69.40% 69.21% 54.65% 49.21% 44.97%
Total Reserves and Surplus 69.40% 69.21% 54.65% 49.21% 44.97%
Total Shareholders Funds 69.92% 69.86% 55.43% 50.19% 46.27%
NON-CURRENT LIABILITIES
Long Term Borrowings 0.01% 0.01% 0.02% 0.03% 0.02%
Deferred Tax Liabilities [Net] 0.00% 0.00% 0.00% 0.00% 0.50%
Other Long Term Liabilities 0.56% 0.66% 0.69% 0.80% 1.02%
Government/Other Grants 0.00% 0.00% 0.09% 0.15% 0.23%
Total Non-Current Liabilities 0.56% 0.67% 0.80% 0.97% 1.76%
CURRENT LIABILITIES
Short Term Borrowings 0.19% 0.00% 0.00% 0.00% 0.00%
Trade Payables 18.72% 17.42% 21.50% 24.99% 26.28%
Other Current Liabilities 6.91% 7.34% 6.23% 7.16% 8.04%
Short Term Provisions 3.70% 4.72% 16.04% 16.69% 17.64%
Total Current Liabilities 29.52% 29.47% 43.78% 48.84% 51.96%
Total Capital And Liabilities 100.00% 100.00% 100.00% 100.00% 100.00%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 21.79% 21.98% 20.41% 20.85% 28.72%
Intangible Assets 0.17% 0.31% 0.43% 0.52% 0.86%
Capital Work-In-Progress 4.33% 0.81% 2.43% 1.96% 5.27%
Other Assets 0.32% 0.41% 0.00% 0.00% 0.00%
Fixed Assets 26.61% 23.51% 23.27% 23.32% 34.86%
Non-Current Investments 9.74% 13.91% 17.97% 11.09% 12.41%
Deferred Tax Assets [Net] 0.19% 0.17% 0.74% 0.86% 0.00%
Long Term Loans And Advances 1.87% 3.15% 10.58% 5.16% 5.45%
Other Non-Current Assets 1.78% 5.01% 1.22% 1.51% 0.66%
Total Non-Current Assets 40.19% 45.76% 53.79% 41.95% 53.37%
CURRENT ASSETS
Current Investments 15.89% 2.32% 11.20% 15.76% 7.81%
Inventories 12.85% 16.30% 12.52% 14.04% 19.89%
Trade Receivables 4.98% 3.42% 3.48% 2.88% 2.91%
Cash And Cash Equivalents 2.10% 1.45% 0.81% 7.58% 3.57%
Short Term Loans And Advances 17.73% 21.43% 18.20% 17.79% 12.45%
OtherCurrentAssets 6.26% 9.32% 0.00% 0.00% 0.00%
Total Current Assets 59.81% 54.24% 46.21% 58.05% 46.63%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Trend Analysis Balance Sheet in %
Mar 18 Mar-17 Mar-16 Mar-15 Mar-14
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 100% 100% 100% 100% 100%
Total Share Capital 100% 100% 100% 100% 100%
Reserves and Surplus 387% 308% 202% 146% 100%
Total Reserves and Surplus 387% 308% 202% 146% 100%
Total Shareholders Funds 379% 303% 199% 145% 100%
NON-CURRENT LIABILITIES
Long Term Borrowings 88% 129% 144% 215% 100%
Deferred Tax Liabilities [Net] 0% 0% 0% 0% 100%
Other Long Term Liabilities 137% 129% 112% 105% 100%
Government/Other Grants 0% 0% 67% 83% 100%
Total Non-Current Liabilities 80% 76% 75% 73% 100%
CURRENT LIABILITIES
Short Term Borrowings 100% 100% 100% 100% 100%
Trade Payables 179% 133% 136% 127% 100%
Other Current Liabilities 215% 183% 129% 119% 100%
Short Term Provisions 53% 54% 151% 126% 100%
Total Current Liabilities 143% 114% 140% 125% 100%
Total Capital And Liabilities 251% 200% 166% 133% 100%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 190% 153% 118% 97% 100%
Intangible Assets 50% 73% 84% 80% 100%
Capital Work-In-Progress 206% 31% 77% 50% 100%
Other Assets 100% 100% 100% 100% 100%
Fixed Assets 192% 135% 111% 89% 100%
Non-Current Investments 197% 225% 241% 119% 100%
Deferred Tax Assets [Net] 100% 100% 100% 100% 100%
Long Term Loans And Advances 86% 116% 323% 127% 100%
Other Non-Current Assets 678% 1527% 310% 306% 100%
Total Non-Current Assets 189% 172% 168% 105% 100%
CURRENT ASSETS
Current Investments 511% 60% 239% 269% 100%
Inventories 162% 164% 105% 94% 100%
Trade Receivables 429% 235% 199% 132% 100%
Cash And Cash Equivalents 148% 81% 38% 284% 100%
Short Term Loans And Advances 357% 345% 243% 191% 100%
OtherCurrentAssets 100% 100% 100% 100% 100%
Total Current Assets 322% 233% 165% 166% 100%
Total Assets 251% 200% 166% 133% 100%
 Britannia Industries
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar 18 Mar-17 Mar-16 Mar-15 Mar-14
INCOME
Revenue From Operations [Gross] 9,276.17 8,577.14 8,097.81 7,269.26 6,347.85
Less: Excise/Sevice Tax/Other Levies 76.11 270.02 228.92 168.8 115.76
Revenue From Operations [Net] 9,200.06 8,307.12 7,868.89 7,100.46 6,232.09
Other Operating Revenues 104 107.25 79.01 75.53 75.3
Total Operating Revenues 9,304.06 8,414.37 7,947.90 7,175.99 6,307.39
Other Income 155.93 144.78 98.21 87.53 34.82
Total Revenue 9,459.99 8,559.15 8,046.11 7,263.52 6,342.21
EXPENSES
Cost Of Materials Consumed 4,405.17 4,342.78 3,796.44 3,592.99 3,165.53
Purchase Of Stock-In Trade 1,372.46 904.78 833.01 749.33 656.78
Changes In Inventories Of FG,WIP And Stock-In
-4.18 -49.25 -7.12 -25.48 -12.58
Trade
Employee Benefit Expenses 294.87 241.68 209.21 176.79 172.45
Finance Costs 1.45 1.34 1.25 1.21 5.44
Depreciation And Amortisation Expenses 119.76 96.43 86.89 117.27 63.38
Other Expenses 1,825.26 1,770.23 1,984.54 1,910.86 1,728.59
Total Expenses 8,014.79 7,307.99 6,904.22 6,522.97 5,779.59
Profit/Loss Before Exceptional, ExtraOrdinary
1,445.20 1,251.16 1,141.89 740.55 562.62
Items And Tax
Exceptional Items 0 0 -10.33 142.06 -20
Profit/Loss Before Tax 1,445.20 1,251.16 1,131.56 882.61 542.62
Tax Expenses-Continued Operations
Current Tax 499.56 390.2 384.07 285.68 177.25
Deferred Tax -2.25 17.27 -1.6 -25.48 -4.46
Total Tax Expenses 497.31 407.47 382.47 260.2 172.79
Profit/Loss After Tax And Before ExtraOrdinary
947.89 843.69 749.09 622.41 369.83
Items
Profit/Loss From Continuing Operations 947.89 843.69 749.09 622.41 369.83
Profit/Loss For The Period 947.89 843.69 749.09 622.41 369.83
Common Size Profit & Loss Statement in %
Mar 18 Mar-17 Mar-16 Mar-15 Mar-14
INCOME
Revenue From Operations [Gross] 100.83% 103.25% 102.91% 102.38% 101.86%
Less: Excise/Sevice Tax/Other Levies 0.83% 3.25% 2.91% 2.38% 1.86%
Revenue From Operations [Net] 100.00% 100.00% 100.00% 100.00% 100.00%
Other Operating Revenues 1.13% 1.29% 1.00% 1.06% 1.21%
Total Operating Revenues 101.13% 101.29% 101.00% 101.06% 101.21%
Other Income 1.69% 1.74% 1.25% 1.23% 0.56%
Total Revenue 102.83% 103.03% 102.25% 102.30% 101.77%
EXPENSES 0.00% 0.00% 0.00% 0.00% 0.00%
Cost Of Materials Consumed 47.88% 52.28% 48.25% 50.60% 50.79%
Purchase Of Stock-In Trade 14.92% 10.89% 10.59% 10.55% 10.54%
Changes In Inventories Of FG,WIP And Stock-In
Trade -0.05% -0.59% -0.09% -0.36% -0.20%
Employee Benefit Expenses 3.21% 2.91% 2.66% 2.49% 2.77%
Finance Costs 0.02% 0.02% 0.02% 0.02% 0.09%
Depreciation And Amortisation Expenses 1.30% 1.16% 1.10% 1.65% 1.02%
Other Expenses 19.84% 21.31% 25.22% 26.91% 27.74%
Total Expenses 87.12% 87.97% 87.74% 91.87% 92.74%
Profit/Loss Before Exceptional, ExtraOrdinary
Items And Tax 15.71% 15.06% 14.51% 10.43% 9.03%
Exceptional Items 0.00% 0.00% -0.13% 2.00% -0.32%
Profit/Loss Before Tax 15.71% 15.06% 14.38% 12.43% 8.71%
Tax Expenses-Continued Operations 0.00% 0.00% 0.00% 0.00% 0.00%
Current Tax 5.43% 4.70% 4.88% 4.02% 2.84%
Deferred Tax -0.02% 0.21% -0.02% -0.36% -0.07%
Total Tax Expenses 5.41% 4.91% 4.86% 3.66% 2.77%
Profit/Loss After Tax And Before ExtraOrdinary
Items 10.30% 10.16% 9.52% 8.77% 5.93%
Profit/Loss From Continuing Operations 10.30% 10.16% 9.52% 8.77% 5.93%
Profit/Loss For The Period 10.30% 10.16% 9.52% 8.77% 5.93%
Trend Analysis Profit & Loss Statement in %
Mar 18 Mar-17 Mar-16 Mar-15 Mar-14
INCOME
Revenue From Operations [Gross] 146.13% 135.12% 127.57% 114.52% 100.00%
Less: Excise/Sevice Tax/Other Levies 65.75% 233.26% 197.75% 145.82% 100.00%
Revenue From Operations [Net] 147.62% 133.30% 126.26% 113.93% 100.00%
Other Operating Revenues 138.11% 142.43% 104.93% 100.31% 100.00%
Total Operating Revenues 147.51% 133.40% 126.01% 113.77% 100.00%
Other Income 447.82% 415.80% 282.05% 251.38% 100.00%
Total Revenue 149.16% 134.96% 126.87% 114.53% 100.00%
EXPENSES 100.00% 100.00% 100.00% 100.00% 100.00%
Cost Of Materials Consumed 139.16% 137.19% 119.93% 113.50% 100.00%
Purchase Of Stock-In Trade 208.97% 137.76% 126.83% 114.09% 100.00%
Changes In Inventories Of FG,WIP And Stock-In
Trade 33.23% 391.49% 56.60% 202.54% 100.00%
Employee Benefit Expenses 170.99% 140.14% 121.32% 102.52% 100.00%
Finance Costs 26.65% 24.63% 22.98% 22.24% 100.00%
Depreciation And Amortisation Expenses 188.96% 152.15% 137.09% 185.03% 100.00%
Other Expenses 105.59% 102.41% 114.81% 110.54% 100.00%
Total Expenses 138.67% 126.44% 119.46% 112.86% 100.00%
Profit/Loss Before Exceptional, ExtraOrdinary
Items And Tax 256.87% 222.38% 202.96% 131.63% 100.00%
-
Exceptional Items
0.00% 0.00% 51.65% 710.30% 100.00%
Profit/Loss Before Tax 266.34% 230.58% 208.54% 162.66% 100.00%
Tax Expenses-Continued Operations 100.00% 100.00% 100.00% 100.00% 100.00%
Current Tax 281.84% 220.14% 216.68% 161.17% 100.00%
-
Deferred Tax
50.45% 387.22% 35.87% 571.30% 100.00%
Total Tax Expenses 287.81% 235.82% 221.35% 150.59% 100.00%
Profit/Loss After Tax And Before ExtraOrdinary
Items 256.30% 228.13% 202.55% 168.30% 100.00%
Profit/Loss From Continuing Operations 256.30% 228.13% 202.55% 168.30% 100.00%
Profit/Loss For The Period 256.30% 228.13% 202.55% 168.30% 100.00%
 RATIO ANALYSIS DATA

Current Assets 2,767.52 2,004.88 1,417.39 1,429.30 860.06

Current Liabilities 1,366.03 1,089.42 1,342.70 1,202.45 958.43
Quick Assets 2,172.94 1,402.27 1,033.38 1,083.56 493.20
Cash & Bank Balance 97.25 53.55 24.8 186.67 65.78
Shareholder's Equity 3,235.28 2,581.98 1,700.16 1,235.62 853.46
Capital Employed 3,261.27 2,606.72 1,724.56 1,259.54 886.01
Non-Current Liabilities 25.99 24.74 24.40 23.92 32.55
Total Debt 1,392.02 1,114.16 1,367.10 1,226.37 990.98
Total Assets 4,627.30 3,696.14 3,067.26 2,461.99 1,844.44
Capital Entitled to Fixed Interest or
Dividend 9.31 0.44 0.49 0.73 0.34
Capital not Entitled to Fixed Interest
or Dividend 3,235.28 2,581.98 1,700.16 1,235.62 853.46
Proprietary Fund 3,235.28 2,581.98 1,700.16 1,235.62 853.46
Earning before Interest & Taxes 1,445.20 1,251.16 1,141.89 740.55 562.62
Interest Paid 1.45 1.34 1.25 1.21 5.44
Sales 9,200.06 8,307.12 7,868.89 7,100.46 6,232.09
Total Fixed Assets 1,231.55 869.09 713.89 574.17 642.88
Total Current Assets 2,767.52 2,004.88 1,417.39 1,429.30 860.06
Net Assets (Capital Employed) 3,261.27 2,606.72 1,724.56 1,259.54 886.01
Working Capital 1,401.49 915.46 74.69 226.85 -98.37
Average Inventory 598.595 493.31 364.875 356.3 366.86
Average Account Receivable 178.365 116.555 88.84 62.335 53.69
Average Account Payable 755.09 651.63 637.325 549.945 484.68
Cost of Good Sold 5,773.45 5,198.31 4,622.33 4,316.84 3,809.73
Gross Profit 3,426.61 3,108.81 3,246.56 2,783.62 2,422.36
Operating Profit 1,446.65 1,252.50 1,143.14 741.76 568.06
Net Profit 947.89 843.69 749.09 622.41 369.83
Profit after Tax 947.89 843.69 749.09 622.41 369.83
Average Total Assets 4161.72 3381.7 2764.625 2153.215 1,844.44
No. of Equity Shares 120046477 119991020 119966116 119925815 119799171
Equity Share Dividend Paid 264.13 239.95 239.95 191.88 143.91
 Ratios Formula Mar 18 Mar-17 Mar-16 Mar-15 Mar-14
Current Ratio Current Assets / Current liabilities 2.03 1.84 1.06 1.19 0.90
Liquidity Ratios Quick Ratio Quick Assets / Current Liabilities 1.59 1.29 0.77 0.90 0.51
(Cash & Bank Balance+Marketable
Cash Ratio
Securities)/Current Liabilities 0.07 0.05 0.02 0.16 0.07
Equity Ratio Shareholder's Equity / Capital Employed 0.99 0.99 0.99 0.98 0.96
Debt to Equity Ratio (Long Term) Non-Current Liabilities / Shareholder's Equity 0.01 0.01 0.01 0.02 0.04
Total Debt (Current Liabilities+Non-Current
Debt to Equity Ratio (All Liabilities)
Liabilities) / Shareholder's Equity 0.43 0.43 0.80 0.99 1.16
Solvency Ratios Debt to Total Assets Ratio Total Debt / Total Assets 0.30 0.30 0.45 0.50 0.54
Capital Entitled to Fixed Interest or Dividend /
Capital Gearing Ratio
Capital not Entitled to Fixed Interest or Dividend 0.00 0.00 0.00 0.00 0.00
Proprietary Ratio Proprietary Fund / Total Assets 0.70 0.70 0.55 0.50 0.46
Interest Coverage Ratio Earning before Interest & Taxes / Interest 996.69 933.70 913.51 612.02 103.42
Total Asset Turnover Ratio COGS or Sales / Total Assets 1.99 2.25 2.57 2.88 3.38
Fixed Asset Turnover Ratio COGS or Sales / Total Fixed Assets 7.47 9.56 11.02 12.37 9.69
Current Asset Turnover Ratio COGS or Sales / Total Current Assets 3.32 4.14 5.55 4.97 7.25
Capital Turnover Ratio COGS or Sales / Net Assets or Capital Employed 2.82 3.19 4.56 5.64 7.03
Efficiency Ratios
Working Capital Turnover Ratio COGS or Sales / Working Capital 6.56 9.07 105.35 31.30 -63.35
Inventory Turnover Ratio COGS or Sales / Average Inventory 15.37 16.84 21.57 19.93 16.99
Debtors Turnover Ratio Credit Sales / Average Accounts Receivables 51.58 71.27 88.57 113.91 116.08
Creditors Turnover Ratio Credit Purchase / Average Accounts Payables
Gross Profit Ratio Gross Profit / Sales * 100 37.25 37.42 41.26 39.20 38.87
Net Profit Ratio Net Profit / Sales * 100 10.30 10.16 9.52 8.77 5.93
Operating Profit Ratio Operating Profit / Sales * 100 15.72 15.08 14.53 10.45 9.12
Return on Total Assets Profit after Tax / Average Total Assets * 100 22.78 24.95 27.10 28.91 20.05
Return on Capital Employed Operating Profit / Capital Employed * 100 44.36 48.05 66.29 58.89 64.11
Profitability Ratios Return on Equity Net Profit after Tax / Shareholder's Equity * 100 29.30 32.68 44.06 50.37 43.33
Earning per Share Profit after Tax / No. of Equity Shares 78.96 70.31 62.44 51.90 30.87
Dividend Per Share Total Dividend Paid / No. of Equity Shares 22.00 20.00 20.00 16.00 12.01
Dividend Payout Ratio Dividend per Share / Earning per Share * 100 27.87 28.44 32.03 30.83 38.91
Average Market Price per Share / Earning per
Price Earning Ratio
Share
 RATIO ANALYSIS OF BRITANNIA INDUSTRIES LIMITED :
1. Liquidity Ratios :
a. Current ratio is used to measure a company’s short-term liquidity position and
provides a quantitative relationship between current assets (CA) and current liabilities
(CL). Britannia’s Current ratio over the last 5 financial years has been increased from
0.90 times to 2.03 times, which indicates that the Company has good ability to pay
short term as well as long term.
b. Quick ratio is a liquidity ratio which is used as a measure of the ability of the company
to meet its current obligation. It is utilised to assess whether a business has sufficient
assets that can be translated into cash to pay its bills. Britannia’s Quick ratio over the
last 5 financial years has been increased from 0.51 times to 1.59 times, which indicates
that the Company has been maintaining sufficient cash to meet its short term
obligations.
2. Solvency Ratios :
c. Debt to equity ratio is a formula that is viewed as a long term solvency ratio. It is a
comparison between the “external finance” and the “internal finance”. Britannia’s
Long term debt to equity ratio over the last 5 financial years has been decreased from
0.04 times to 0.01 times, which indicates that the Company is operating with a
negligible level of debt. Also there is a noticeable decrease in the total debt to equity
ratio from 1.16 times to 0.43 times showing the decrease in total debts of the
company.
d. Interest coverage ratio helps to determine how easily a company can pay interest on
its outstanding debt / borrowings. Britannia’s Interest coverage ratio is also increased
over the last 5 financial years from 103.42 times to 996.69 times showing company is
in good position to pay its interest expense on outstanding debt.
e. Britannia’s Proprietary fund ratio is also increased over the last 5 financial years from
0.46 times to 0.70 times showing the rise in total assets financed by the shareholders.
3. Efficiency Ratios :
f. Asset turnover ratio means how much revenue you earn on the basis of the total assets
you have. Britannia’s Total asset turnover ratio has decreased over the last 5 years
from 3.38 times to 1.99 times showing that company’s efficiency has decreased in
terms of generating revenues from the assets.
g. Debtors turnover ratio is a measure that computes the proportion of how much net
credit sales a firm has and how much average accounts receivables the firm is dealing
 with. Britannia’s Debtors turnover ratio has decreased over the last 5 years from
116.08 times to 51.58 times showing that company’s efficiency has increased in terms
of collection of dues from its debtors.
h. Britannia’s Capital turnover ratio has decreased over the last 5 years from 7.03 times
to 2.82 times showing that company’s efficiency has decreased in terms of generating
sales per rupee of long term investment.
4. Profitability Ratios :
i. Net Profit ratio reflects net margin on profit on the total sales after deducting all
expenses covering interest and taxation too. Britannia’s Net profit ratio has increased
over the last 5 years from 5.93 % to 10.30 % showing that company’s business is
running well and the company is generating good profit.
j. Operating Profit ratio estimates the effectiveness of operations of the company. This
ratio reflects operating margin on profit on the total sales after deducting all expenses
excluding tax and interest. Britannia’s Operating profit ratio has increased over the
last 5 years from 9.12 times to 15.72 times showing that company’s operating
performance has considerably increased.
k. Return on Equity ratio provides how much returns generated from shareholder’s
investments, not from the overall company investments in assets. The ROE for the
company declined and down at 29.30% from 43.33% in last 5 financial years. The ROE
measures the ability of a firm to generate profits from its shareholders capital in the
company.
l. Return on Capital Employed ratio is a profitability ratio which tells how a company is
using its capital. The ROCE for the company is also declined and down at 44.36 % from
64.11 % in last 5 financial years. The ROCE measures the ability of a firm to generate
profits from its total capital (shareholder capital plus debt capital) employed in the
company.
m. The Return on Total Assets ratio of the company increased and remain 22.78 % from
20.05 % in last 5 financial years. The ROTA measures how efficiently the company uses
its assets to generate earnings.
n. In simple terms, Earnings per share formula denote how much of net income each
share has earned during the year. The Earning per share of the company has increase
in last 5 years from 30.87 Rs. to 78.96 Rs. Showing a good improvement.
o. The Dividend per share of the company has increase in last 5 years from 12.01 Rs. to
22.00 Rs. Showing that company is paying good dividend to its equity shareholders.
 BALANCESHEET ANALYSIS OF BRITANNIA INDUSTRIES LIMITED :

1. Reserves & surplus which is 69.40 % is the highest portion. The company is having huge

amount of reserves & surplus.

2. Majority of reserves and a surplus portion is invested in non-current investments.

3. Company trade receivables are decreasing whereas trade payables are increasing YoY basis.

This means that company is not giving much credit to debtors whereas it is enjoying credit

period from its creditors

4. Equity Share Capital of Britannia Industries has considerably decreased YoY from 1.30 % to
0.52 %, showing some kind of withdrawal from the company by the shareholders.
5. Company’s noncurrent liabilities have also decreased YoY in last 5 years from 1.76 % to 0.56
%, showing that company is able to clear its liabilities and its debt has decreased.
6. Long term liabilities of the company has also decreased YoY in last 5 years from 1.02 % to
0.56 %, showing that company is paying its debts timely and reducing the same.
7. The Company’s trade payables are also decreased YoY in last 5 years from 26.28 % to 18.72
% showing the increase in credibility of the company.
8. Company’s fixed assets have also decreased YoY in last 5 years from 28.72 % to 21.79 %,
showing the selling of assets by the company.
9. There is a considerable decrease YoY in last 5 years from 5.45 % to 1.87 % in the long term
loans and advances of the company, showing the decreased in advances given / investment
by the company.
10. Company’s inventories have also decreased YoY in last 5 years from 19.89 % to 12.85 %
showing that company’s improved efficiency to manage the inventories.

INCOME STATEMENT ANALYSIS OF BRITANNIA INDUSTRIES LIMITED :

1. Company’s PBT is considerably increased YoY in last 5 years from 8.71 % to 15.71 % showing
good growth in business.
2. Company’s net profit has also increased in last 5 years from 5.93 % to 10.30 %.
3. Company’s employee benefit expenses have also increased YoY in last 5 years from 2.77 % to
3.21 % showing good employment practices adopted by the company.
4. There is a considerable decrease in other expenses of the company YoY from 27.74 % to 19.84
%, showing improved operational efficiency of the company.
5. Company’s revenues from operations have increased almost by 50 % in last 5 years, showing
increased operational efficiency of the company. Company is doing good in generating
revenues by effective utilization of their resources.
6. Company’s depreciation and amortization expenses are considerably increased by almost
90% in last 5 years showing that the company has not much invested in fixed assets and all
the assets are near to their useful life.
7. Company’s PBT has also increased about 166 % showing that company’s has expended their
business in last 5 years and is able to generate good profits.
8. Company’s other income is also increased exceptionally by almost 350 % showing that
company has made good investments in last 5 years and getting good returns.