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Britannia Q3 Preview: Britannia Q3 Results Preview: Analysts see drop in profit on high agri input prices, packaging costs

NEW DELHI – Industries is anticipated to report a year-on-year (YoY) decline in internet profit for the third quarter of the present monetary 12 months as an increase in agricultural commodity costs and packaging costs is seen adversely affecting the bottom-line, stated analysts.

According to Phillip Capital, the fast-moving shopper items main is more likely to report a profit after tax of Rs 363.2 crore in October-December, down 0.3 per cent sequentially and 33.5 per cent on-year.

Axis Securities sees the corporate’s internet profit at Rs 378 crore, registering a 16.4 per cent on-year decline and a fall of 0.9 per cent in contrast with the earlier quarter.

In the third quarter of the earlier monetary 12 months, Britannia Industries reported a 22.4 per cent rise in internet profit to Rs 452 crore. The firm will launch its earnings for October-December of 2021-22 (Apr-Mar) on Friday.

HDFC Securities pegs the corporate’s income development at 9 per cent YoY for the quarter below overview, led by quantity development of three per cent on-year. The brokerage additionally predicts a YoY decline of 439 foundation factors for Britannia’s gross margins in October-December.

“However, QoQ it should improve by 50 bps owing to price hikes and grammage reductions EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) Margins to contract YoY on GM contraction,” Axis Securities wrote in a pre-earnings observe.

The brokerage pegs Britannia’s Q3 EBITDA at Rs 537 crore, a decline of 12.1 per cent in contrast with a 12 months in the past and three.8 per cent sequentially.

The EBIDTA margin is seen at 16.2 per cent for the quarter below overview, down 352 foundation factors from a 12 months in the past however up 46 foundation factors from the earlier quarter.

“We model EBTIDA margin contraction of 237 bps YoY (+248 bps in Q3FY21 and – 428 bps in Q2FY22). EBITDA to decline by 4% YoY (up 22% in Q3FY21),” HDFC Securities wrote.

According to Axis Securities, Britannia’s revenues are seen clocking in at Rs 3,324 crores for the interval below overview, down 6.5 per cent sequentially however registering a achieve of seven per cent as towards the identical time a 12 months in the past.

Among the important thing monitorables being tracked by Axis Securities have been the demand atmosphere, uncooked materials price outlook, market share developments, replace on core biscuits portfolio and adjacencies and any replace on ICDs (inter-corporate deposits).

Phillip Capital predicted low single-digit development in volumes for Britannia in October-December on account of three components – rural weak spot, drop in-home consumption and discount in grammage executed in low unit packets.

On Thursday, Britannia’s shares ended at Rs 3,461.85, down 1.62 per cent on the National Stock Exchange.

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