HDFC Securities expects Britannia to log 18.9 per cent YoY rise in revenue at Rs 440 crore. This brokerage sees gross sales rising 8.8 per cent to Rs 3,120 crore pushed by volume growth of seven per cent YoY. Volume development stood at 4 per cent in December quarter and was flat within the year-ago quarter. Ebitda margin is seen increasing 230 foundation factors rise at 18.1 per cent in contrast with 15.8 per cent within the year-ago quarter.
Emkay Global stated that moderation in wheat and skimmed milk costs (SMP) costs will assist Britannia expand Ebitda margins by 310 bps to 18.9 per cent. It sees revenue rising 16 per cent to Rs 432.60 crore on a 9 per cent rise in gross sales at Rs 3,133 crore. The numbers would partly be impacted by decrease tax price within the base quarter, it stated.
During the quarter, crude palm oil (up 47 per cent), and HDPE (packaging materials) (up 47 per cent) rose, whereas different key uncooked materials reminiscent of wheat (down 18 per cent), milk (down 3 per cent) and sugar (down 5 per cent) witnessed deflationary pattern on a YoY foundation.
Centrum Broking estimates Britannia’s revenue growth at 9 per cent YoY, primarily led by home quantity development as “no significant price increases occurred in the March quarter.”
“With improved out-of-home consumption and recovery in the modern trade, the biscuits category growth could rebound. Further, we note, its continued efforts in improving its penetration in the Hindi-speaking belt (driven by value segment) could aid revenues; yet rural markets are driven by preference for Rs 5 and Rs 10 packs. Our channel check suggests metro and tier-1 markets saw pick-up in demand for large packs,” Centrum stated.
“Nonetheless, channel partners indicated that demand remained tepid during the quarter as most of the players in the (MSME) segment are back in business and trade was flooded with snacking choices. Interestingly, there was sharp improvement in off-take in March month. We expect adjusted net profit to grow 14.7 per cent, given lower growth in other income,” the brokerage stated.