Q3FY24 Preview: Britannia Industries: Revenue seen at ₹43,886 Million, PAT at ₹6,088 Million

5 Feb 2024 , 10:19 AM

Result date: February 6, 2024

Recommendation: Add

Target price: ₹5,200

Analysts at IIFL Capital Services expect Britannia Industries (Britannia) to post revenue growth of 7% over the year-ago quarter. The company’s sales volumes are likely to remain flattish, partly due to a high base effect of the December 2022 quarter. Anniversarization of price hikes, higher competitive intensity could also weigh on the company’s topline during the quarter under review.

While gross margins could benefit from premiumization and easing input costs, higher advertising spends and higher base of the year-ago quarter could have some bearing on Britannia’s EBITDA margin during the quarter.

Important management insights to watch out for:

• Demand environment, particularly in rural markets
• Market share updates
• Outlook on input costs, pricing action and margins
• Progress on new ventures

₹ Million	December 2023 estimates	YoY change
Revenue	43,886	7.0%
EBITDA	8,418	3.0%
Profit After Tax	6,088	(3.0)%

Source: IIFL Research