Britannia Q2 net seen up 68.5% at Rs 76.8cr: Motilal Oswal
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.
November 08, 2013 / 11:25 IST
Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the consumer sector. The brokerage house expects Britannia Industries to report a 10.9 percent degrowth quarter-on-quarter (up 68.5 percent Y-o-Y) in net profit at Rs 76.8 crore.
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.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 5 percent Q-o-Q (down 83 percent Y-o-Y) to Rs 111 crore.Motilal Oswal's Report on Britannia Industries:We expect Britannia (BRIT) to post sales of INR 15.9 billion, a growth of 13 percent Y-o-Y. Volume growth would be 5-6 percent, aided by lower base.We estimate 270bp EBITDA margin expansion to 7 percent, driven by better control on overheads and conversion costs.BRIT is least impacted by INR depreciation, as less than 20 percent of its raw material basket is USD-linked.According to the management, overall volume growth for the industry has come off by two-third in 12 months.BRIT is one of the few stocks in our universe where we see strong probability of earnings upgrade, driven by sustained margin expansion. The stock trades at 22x FY15E EPS.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
