Britannia is expected to report good result in April-June quarter riding on strong volume growth and margin expansion. The confectionary company's net profit is likely to be at Rs 159 crore in April-June quarter, up 40 percent from Rs 114 crore in corresponding quarter last fiscal. According to CNBC-TV18 poll, Q1 revenue is seen up 12 percent at Rs 2009 crore against Rs 1787 crore in year-ago period.
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.
EBITDA is seen up 40 percent at Rs 238 crore against Rs 170 crore and EBITDA margins may come in 11.8 percent versus 9.5 percent(year-on-year). Analysts expect robust gross margins expansion of 150-250 basis points led by soft input costs and premiumisation efforts. Also benign prices of palm oil, wheat and sugar are likely to push margins. Higher advertisement and promotion (A&P) spendsmay rise by 80 bps to support new launches. The company has launched three new products in last six months.
Key things to watch out are outlook on input costs and impact on gross margins, demand outlook, growth in biscuits and advertising spends.
Britannia Industries was quoting at Rs 3,135.25, down Rs 21.10, or 0.67 percent on the BSE.
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