Britannia is expected to announce March quarter results on May 22. The FMCG major is likely to report consolidated net profit at Rs 148 crore, rising 37.8 percent in Q4 from Rs 107.7 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, total income is likely to be up 12.5 percent at Rs 2,040 crore compared to Rs 1,812 crore on yearly basis.
Analysts polled by CNBC-TV18 expect EBITDA to be up 32.3 percent at Rs 223 crore versus Rs 168 crore year-on-year while operating profit margins may jump 160 basis points (bps) at 10.9 percent against 9.3 percent.
On a standalone basis, the company's reported net profit may be up 48.2 percent at Rs 136 crore on a total income of Rs 1,870 crore (up 13.1 percent).
Analysts expect volume growth of high-single digits while some bullish estimates even peg the expected volume growth at 10 percent led by strong growth in power brands & new products. Margin expansion will continue led by cost efficiencies, product mix improvement and benign input cost inflation.
The company may maintain its ad spends, given low volume growth, new product introductions, high competitive intensity characterizing the industry, company sponsored the Filmfare Awards this time and also pushed heavy advertising during Cricket World Cup. However, depreciation due to new Gujarat unit may drag profit growth.
Key issues to watch out are volume growth in biscuits, outlook on raw material scenario and performance of subsidiaries.
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