Britannia Industries shares will be in focus on November 12 after the JimJam maker shared its earnings report for the quarter ended September, which came in under expectations.
The FMCG player reported a consolidated net profit of Rs 531.5 crore, down 9.4 percent over Rs 586.5 crore in the year-ago period, the company said in an exchange filing.
The revenue from operations came in at Rs 4,667.6 crore in the reported quarter, up 5 percent compared to Rs 4,432.88 crore in the same period of the previous financial year.
The quarter was hurt by weaker demand for consumer goods, particularly in urban areas amid high inflation. The company's total expenses rose by 8 percent during the quarter, hurt by higher prices of ingredients such as wheat and cocoa.
At 9.25 am, shares of the firm sank 2.4 percent on the NSE to trade at Rs 5,304.25 per share.
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International brokerage Goldman Sachs said the Q2 earnings were much under its estimates. Volume growth came in high single-digits, but the revenue growth was lower than expected. The EBITDA margin took a sharp tumble and is likely to continue facing pressure, as input costs are likely to go up in H2FY25.
The brokerage reiterated its 'neutral' call on Britannia Industries, with a target price of Rs 5,350 per share.
Morgan Stanley noted that there could be a downside risk to Britannia Industries' guidance as inflation has impacted demand and profit. The brokerage kept its 'equal-weight' call on the FMCG major intact, despite it reporting a miss on all fronts during Q2. It had a target price of Rs 5,424 apiece.
Japanese brokerage Nomura also maintained its 'neutral' rating, saying that Britannia Industries reported another quarter of below expected results. Broking firm Investec concurred, keeping its 'hold' rating steady as the biscuit maker reported another miss on margins.
Shares of Britannia Industries have staged a 12-month run of around 15 percent, underperforming the benchmark index Nifty 50, which has risen 25 percent during the same time period.
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