Mumbai: Biscuit-maker
Britannia Industries announced an interim dividend of Rs 35 per share for the financial year 2019-20, ahead of its
March quarter earnings announcement.
The maker of Tiger and Good Day biscuits is likely to post single-digit profit growth in the quarter ended March, as it was partially marred by the rise in raw material prices, outbreak of coronavirus pandemic amid consumption slowdown.
Brokerage firm Edelweiss Securities sees 1.6 per cent year-on-year (YoY) rise in profit after tax on 6.9 per cent fall in revenues. It also projects 10.10 per cent dip in EBITDA in Q4FY20.
“We expect Britannia to post volume dip of around 8 per cent YoY on consumption slowdown,” the brokerage house said while adding there is some inflationary trend in raw material prices which will lead to gross margin compression of 80 basis points.
HDFC Securities believes that Britannia may report 9.5 per cent rise in net profit, while net sales and EBITDA may contract by 2 per cent and 4 per cent YoY, respectively.