MAM

FY-2015: Britannia marketing spends up 8%

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/mam-images/2015/05/23/mam-brands-financial-priority-1.gif?itok=jzu8IcKa

BENGALURU: Britannia Industries Limited spent eight per cent more towards Advertisement and Sales Promotion (ASP) in FY-2015 at Rs 651.70 crore (8.3 per cent of Net total Income from Operations or TIO) versus Rs 603.65 crore (8.7 per cent of TIO) in FY-2014.

The company?s ASP in Q4-2015 (quarter ended 31 March, 2015, current quarter) at Rs 202.89 crore (9.8 per cent of TIO) was 33.8 per cent more than the Rs 146.19 crore (8.1 per cent of TIO) in Q4-2014 and was 21.6 per cent more than the Rs 166.90 crore (8.2 per cent of TIO) in the immediate trailing quarter.

Note: 100,00,000 = 100 Lakhs = 10 million = 1 crore

In FY-2015, Britannia?s TIO increased 13.7 per cent to Rs 7858.42 crore as compared to the Rs 6912.71 crore in FY-2014. Please refer to Fig 1 below. Over the 12 quarter period starting Q1-2013 until the current quarter, Britannia TIO was the highest in Q4-2015 at Rs 2063.64 crore. TIO in the current quarter was 13.9 per cent more than the Rs 1812.44 crorein Q4-2014 and 1.5 per cent more than the Rs 2033.28 crore in the trailing quarter.

The broken grey trend line indicates that the company?s TIO has a linear increasing trend and intercepts Q4-2015 ordinate at Rs 2054.976 crore as compared to the TIO of Rs 2063.64 crore actually achieved by Britannia.

During the period under consideration in this report, Britannia?s ASP in the current quarter was the highest, both in terms of absolute rupees as well as in terms of percentage of TIO. The lowest ASP in absolute rupees was in Q1-2013 at Rs 112.96 crore (8.3 per cent of TIO), while in terms of percentage of TIO, it was 7.3 per cent (Rs 143.48 crore) in Q2-2015.

The maroon and the blue broken trend lines indicate a linear increasing trend for ASP in absolute rupees as well as percentage of TIO. The slope of the maroon broken trend line indicates an intercept at the Q4-2015 ordinate at 8.46 per cent as compared to the 9.8 per cent of TIO actually spent by Britannia. The slope of blue broken trend line indicates an intercept at Q4-2015 of Rs 173.4448 crores, the company actually spent Rs 202.89 crore.

In FY-2015, Britannia reported PAT of Rs 688.64 crore (8.8 per cent of TIO), which was 74.2 per cent more than the Rs 395.35 crore (5.7 per cent of TIO) in FY-2014.

Please refer to Fig 2 below. Britannia?s PAT in Q4-2015 at Rs 167.25 crore (8.1 per cent of TIO) increased 55.4 per cent as compared to the Rs 100.32 crore (5.6 per cent of TIO) in Q4-2014 and was 21.9 per cent more than the Rs 137.22 crore in the immediate trailing quarter. During the period under consideration in this report, the company?s PAT shows a linear increasing trend both in absolute rupees as was well as in terms of percentage of TIO.

In August 2014, Indiantelevision.com had indicated that Britannia Industries PAT in Q2-2015 would probably be a new record. During the 12 quarter period under consideration, the company?s PAT in Q2-2015 was indeed the highest recorded by the company, both in terms of absolute rupees as well as in terms of PAT as percentage of TIO at Rs 270.46 crore and 13.7 per cent of TIO.

The lowest PAT reported by the company in absolute rupees as well as in terms of percentage of TIO was in Q1-2013 at Rs 46.48 crore and 3.4 per cent of TIO.

However, based on the trends during the period under consideration in this report, the slope of the red broken trend line indicates its intercept on the Q4-2015 ordinate as 9.11 per cent of TIO as opposed to the 8.1 per cent actually achieved by the company. In absolute rupees, the slope of the purple broken trend line indicates its interception of the Q4-2015 ordinate as Rs 182.261 crore as compared to the PAT of Rs 167.25 crore achieved by the company.

The board of directors of the company have recommended a dividend of 800 per cent (Rs 16 per equity share having face value of Rs 2 each) for FY-2015. 

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