Q4FY23 Preview: Britannia Industries: Revenue seen at Rs 40,708 million, PAT at Rs 4,866 million

3 May 2023 , 07:53 AM

Result date: 5^th May, 2023

Recommendation: Add

Target price: Rs 5,000

Analysts at IIFL Securities expect Britannia Industries to post revenue growth of 16% as compared to the year-ago quarter. Volume growth is pegged in the mid-single digit range for the quarter. Healthy growth in distribution network, market share gains and better product mix are key drivers of this growth. Investors though will watch out for weakness in rural demand and management comments thereof.

The company’s EBITDA could grow at 28% on the back of expansion in gross margin, negating impact of high ad spends.

Profit After Tax or PAT could grow 28.1% as compared to the year-ago quarter.

Important management insights to watch out for:

• Rural demand environment
• Outlook on input costs
• Market share trends
• Update on core biscuits portfolio, adjacencies and ICDs

Rs Million	March 2023 estimates	YoY change
Revenue	40,708	16.0%
EBITDA	7,034	28.0%
Profit After Tax	4,866	28.1%

Source: IIFL Research