“Britannia will post 12 per cent revenue growth as demand for biscuits remains high as it is a cheap and hygienic product in terms of consumption with many more tea drinking occasions,” stated analysts at Elara Securities.
They projected gross sales for the quarter at Rs 3,411.eight crore, up 11.9 per cent year-on-year and revenue at Rs 463.2 crore, a development of 14.7 per cent.
In the June quarter, which was extremely affected by pandemic-led restrictions, Britannia greater than doubled its income to Rs 542.68 crore. In the September quarter final yr, it had posted a 74 per cent improve in web revenue to Rs 492.58 crore.
“Strong sales growth will be led by estimated 11 per cent volume growth. Moderation in wheat, SMP and sugar prices will expand gross margins by 150bps. Cost savings will likely drive EBITDA margin expansion and growth but PAT growth will be lower,” stated Emkay Research.
Shares of Britannia have been in demand, due to beneficial enterprise situations for the corporate. It has delivered 23.79 per cent year-to-date, in opposition to Sensex which is down over Three per cent in the identical interval.
“We expect the biscuit category to continue to benefit from increased in-home consumption, however with a decreasing magnitude, given that QSR, home delivery and roadside hawkers are incrementally gaining hack lost wallet share,” stated analysts at Centrum Institutional Research.
They anticipate Britannia to ship a 17 per cent income development, led by 13.5 per cent home quantity development and the remainder from product and worth combine change.
“We note YoY inflation in Crude Palm Oil (+36 per cent), and Sugar (+2 per cent), while benign costs for Wheat (-12 per cent) and Milk Powder (-17 per cent) could weigh on margin. We expect 114bps EBITDA margin expansion led by operating leverage gains and cost optimization efforts,” they stated in a notice.
JM Financials additionally sees a robust uptick in Britannia’s development amidst the pandemic. It initiatives gross sales at Rs 3,523.Three crore, up 16.6 per cent and adjusted revenue at Rs 254.6 crore, up 4.Three per cent YoY.
“Comments on exit growth rate would be key. Scale leverage plus cost efficiencies expected to drive operating margin expansion of 317bps and consequent 39 per cent growth in EBITDA,” the brokers stated.