Q3FY23 Preview: Britannia Industries: Revenue seen at Rs41,486 million, PAT at Rs4,602 million

30 Jan 2023 , 02:24 PM

Result date: 1^st February, 2023

Recommendation: Add

Target price: Rs 4,850

Britannia Industries (Britannia) could post volume growth of 7% over the year-ago quarter and also gain market share (enhanced distribution reach). This, along with price hikes, could drive 17.5% growth in revenue over the year-ago quarter.

Analysts at IIFL Capital Services expect Britannia to witness gross margin expansion of over 100 basis points over the year-ago quarter owing to softening input costs, better mix of premium products and price hikes. Some of these gains could get offset by rising advertising and promotional spends, leading to lesser expansion in EBITDA margin.

Britannia could post 23.7% growth in Profit After Tax or PAT over the year-ago quarter.

Important management insights to watch out for:

• Demand trends in smaller towns 
• Outlook on raw material costs
• Commentary on ICD

Rs Million	December 2022 estimates	YoY change
Revenue	41,486	17.5%
EBITDA	6,709	24.3%
Profit After Tax	4,602	23.7%

Source: IIFL Research