Biscuit maker Britannia Industries is expected to report a 32-percent year-on-year growth in its consolidated net profit at Rs 498.4 crore, when it announces its Q4 results on May 5. According to a poll of brokerages, revenue from operations is seen growing 13.5 percent to Rs 4,029 crore.
That said, net profit will decline over 46 percent from last quarter, which included a one-time gain from stake sale in dairy subsidiary.
“Revenue growth will be aided by market share gains from Parle, traction in new launches, distribution expansion, particularly in rural markets, and likely bottoming of the rural slowdown,” according to analysts at Kotak Institutional Equities.
On the operating front, earnings before interest, taxes, depreciation, and amortisation (EBITDA) is seen growing 28 percent to Rs 703 crore. And, margins might expand 200 basis points to 17.5 percent.
One basis point is one-hundredth of a percentage point.
High wheat and milk prices continue to remain major concerns for the company. The makers of the popular Good Day biscuit took 10 percent price hikes in the quarter gone by, so analysts are expecting 3-4 percent volume growth, which is similar to Q3 FY23.
With HUL slightly missing Street estimates but Nestle posting its highest-ever revenue growth in 10 years, all eyes are now on Britannia’s Q4 numbers. Investors will be keenly eyeing management commentary on raw materials, ad spend demand, and volume trends. Progress in new segments like croissants and marble cake is also a key monitorable.
In the past one month, the stock has gained close to 6 percent. On May 4, the stock closed at Rs 4,578 on the NSE, higher by 1.12 percent from the previous close.
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