Britannia Industries Q3FY22 Preview: Revenue seen at Rs35,720 million, PAT at Rs3,759 million

28 Jan 2022 , 10:30 AM

Result date: 28th January, 2022

Recommendation: Add

Target price: Rs. 3,950

Britannia Industries is likely to report a mixed set of results for the quarter ending December 31, 2021. While it is likely to post one of the highest revenue growth (on a YoY basis) among its peers, its also likely to witness high pressure on profitability (both EBITDA and PAT).

Volume growth is estimated to be flat amid weak demand in rural markets. High input cost inflation (agri commodities, packaging) could pull down gross and EBITDA margin. Company’s net profit could decline 17.5% YoY to Rs3,759.

Sequential performance, though, is likely to be aided by price hikes and reduction in grammage.

Important management insights to watch out for:

·         Market share trends in biscuits segment

·         Demand trends across segments and markets

·         Outlook on input costs

Rs in Million	December 2021 estimates	YoY change
Revenue	35,720	15.0%
EBITDA	5,462	(10.7%)
PAT	3,759	(17.5%)

(Source: Company, IIFL Research)