Q2FY23 Preview: Britannia Industries: Revenue seen at Rs40,867 million, PAT at Rs4,363 million

3 Nov 2022 , 10:12 AM

Result date: 4^th November, 2022
Recommendation: Add
Target price: Rs4,000

Britannia Industries (Britannia) could post volume growth of 4-5% over the year-ago quarter. Market share gains, price hikes and healthy performance of subsidiary could drive revenue growth of 15% over the year-ago quarter.

While input cost pressure persisted in the September 2022 quarter, it is likely to head south going forward. For Britannia, key margin tailwinds would be cost rationalization, while headwinds would be rising palm oil prices (up 27% year-on-year).

The company’s Profit After Tax or PAT could grow 13.6% relative to the year-ago quarter.

Important management insights to watch out for:

• Demand trends in the tier-II, tier-III towns
• Volume/Price growth, input costs outlook
• Subsidiary performance
• Update on down trading trends
• New product launches
• Update on completion of the plant

Rs. Million	September 2022 estimates	YoY change
Sales	40,867	15.0%
EBITDA	6,099	9.2%
Profit After Tax	4,363	13.6%

Source: Company, IIFL Research