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Analysts polled by CNBC-TV18, see volumes growth at 7-10 percent in Q1 and revenues to be further aided by 4-5 percent price and mix led growth. Core brands like Marie, Good Day continue to grow ahead of competition while premium creams and cookies segment outperformed.
In an interview to CNBC-TV18, Nischal Maheshwari of Edelweiss, says capital goods and private banks will post stronger numbers while metals and cement Q1 results would be a drag on the market.
The fourth quarter numbers are not reflective of the price hike that ITC undertook after the increase in excise duty, says Naveen Kulkarni of PhillipCapital. Sources on the ground say, this has resulted in further decline in volumes, he adds.
Key issues to watch out are volume growth in biscuits, outlook on raw material scenario and performance of subsidiaries.
Varun Berry, Managing Director, Britannia Industries says the company embarked on a strategy about eight quarters ago and that is aiding the company‘s performance.
Britannia Industries' third quarter consolidated profit after tax is expected to increase 40.3 percent year-on-year to Rs 141.1 crore, according to the average of estimates of analysts polled by CNBC-TV18.
In an interview to CNBC-TV18, Varun Berry of Britannia Industries spoke about the financial performance of the company and its road ahead hereon.
Britannia Industries has reported two-fold increase in its Q2 net profit. “We have had a net profit growth of 177 percent at Rs 270.46 crore, out of which Rs 124 crore has come from sale of our land in Chennai. If you were to remove that, there was 50 percent growth in our net profit,†said MD Varun Berry.
Analysts said favourable agri-input costs should lead to a gross margin expansion of 250 bps Y-o-Y and this should lead to a similar operating profit margin expansion.
Analysts expect profit after tax of the food company to rise 93 percent year-on-year to Rs 88 crore and total income to increase 12.6 percent Y-o-Y to Rs 1,596 crore in the quarter gone by.
Sales of Britannia Industries are expected to increase by 12.9 percent Q-o-Q (up 13 percent Y-o-Y) to Rs 1,585.2 crore, according to Motilal Oswal.
Britannia Industries' fourth quarter operating profit margin is seen falling 20 basis points Y-o-Y to Rs 5.9 percent.
Motilal Oswal has come out with its earnings estimates for consumer sector for the quarter ended December 2012. The research firm feels the EBITDA is likely to grow by 21.3 percent led by margin expansion in Hindustan Unilever, ITC, Asian Paints, Nestle, GSK Consumer and Marico.
Fast moving consumer goods majors in India are expected to report strong double-digit earnings growth in Oct-Dec, helped by helped by a surge in demand during the festivals, price hikes taken by some companies during the quarter and decline in cost of several raw materials.
Angel Broking has come out with earning expectations for FMCG sector for the October-December quarter of 2012. The research firm expects 3QFY2013 to be a reasonably strong quarter for its FMCG universe with top-line and bottom-line growth coming in at 15.8 percent and 11 percent respectively.
Considerable price hikes, festival season and reform measures announced by the Union Government over the past few months are likely to augur well for the fast moving consumer goods (FMCG) companies in Q3FY13.
India‘s largest FMCG makes, Hindustan Unilever (HUL) would announce its second quarter earnings today. Sanjay Singh of Standard Chartered Securities expects the company‘s volumes to grow by 8 percent in Q2. However, he cautions that its packaged food category may see some slowdown.
Motilal Oswal has come out with its earnings estimates on consumer sector for September quarter FY13. According to the research firm, steep INR depreciation has negated the impact in many commodities, prices of which are linked globally.
In an interview with CNBC-TV18, Vinita Bali, CEO of Britannia said the margins have been improving consistently and the company‘s performance is going to depend on the monsoon and government policy actions.
Fast moving consumer goods companies are expected to report on average around 20% year-on-year sales growth in the Jan-March quarter, helped by some softening of input costs and price hikes.
Fast moving consumer goods companies seem to have ridden the economic slowdown quite well, and are expected to report a strong growth in volumes, even as firms hiked some product prices to offset high input costs.
Motilal Oswal has come with its December quarterly earning estimates for consumer sector.
The FMCG sector has been a stellar performer amid the overall volatility on the street this year. But will the second quarter results lead to further outperformance or will the rally pause?
Angel Broking has come out with its earning estimates on FMCG sector for the quarter ended September 2011. According to the research firm, Britannia September quarter net sales are expected to go up by 17.9% at Rs 1,291 crore, year-on-year (YoY) basis.
KR Choksey has come out with its earning estimates on FMCG sector for the quarter ended September 2011. According to the research firm, Britannia September quarter sales are expected to go up by 15% at Rs 1,255 crore, year-on-year (YoY) basis.