Biscuits and dairy products maker Britannia Industries is likely to report double-digit growth in consolidated profit and revenue for the quarter ended December 2020.
Brokerages expect domestic volume growth in the range of 7-9 percent with operating leverage driving margin expansion for the December quarter.
"We continue to build moderation in biscuits demand (post the spike in in-home consumption) but still much better than pre-COVID level. Biscuits being the cheapest products in the branded packaged foods space is aiding strong demand, particularly in rural areas," said Kotak Institutional Equities which sees over 10 percent growth in revenue and 16 percent in EBITDA YoY.
The brokerage expects consolidated EBITDA margin to expand 83 bps YoY aided by 56 bps expansion in gross margin and operating leverage gains.
Sharekhan expects domestic business volume growth to be at 7-8 percent. "Steady volume growth and margin expansion (up 220 bps YoY) would help PAT to grow by over 20 percent," said the brokerage.
Emkay Global also sees 10 percent growth in revenue and 17 percent in profit. "Moderation in wheat, SMP and sugar prices could expand gross margins by 110bps, and cost savings may drive higher EBITDA margin expansion of 190bps and EBITDA growth of 22 percent YoY," the brokerage said.
The commentary on demand trends and input cost inflation would be key to watch out for.
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