Finance Update Uncategorized

Britannia Q3 net profit rises by 14% yoy to Rs.300cr

Britannia Industries Ltd’s Q3FY19 consolidated net profit rises 13.8% yoy to Rs300.1cr : Misses Estimates

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 2,842.4 10.7
EBITDA 451.8 13.4
EBITDA Margin (%) 15.9 38
Net Profit (adjusted) 300.1 13.8

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The company’s consolidated revenue stood at Rs.2,842.4cr, up 10.7% yoy but flat sequentially

Britannia Industries reported healthy set of numbers for the quarter, marginally below the estimates. Company reported revenue growth of 10.7% yoy to Rs.2,842.4cr, broadly in-line with estimates. Gross margin for the quarter expanded by 261bps yoy to 41.3%, primarily aided by premiumisation. EBITDA grew by 13.4% yoy to Rs.451.8cr (5% below estimates) and EBITDA margin expanded marginally by 38bps yoy to 15.9% (estimate 16.5%). PAT was up 13.8% yoy to Rs.300.1cr, 5% lower than estimates.

  • Company reported healthy revenue growth for the quarter primarily led by widening of distribution network (through focus on direct reach, rural market and weak states) and product innovation.
  • Company continued its premiumisation and innovation journey and launched Whole Wheat Vita MarieGold, Good Day Cashew Almond and renovation of 50-50 & Tiger Creams. Company also filled gaps in Cakes business with launch of Swiss Rolls and Layer Cakes.
  • Greenfield unit in Nepal is progressing on time and is expected to be commissioned in Q4FY19E.
  • Depreciation and interest costs were up by 28.9% and 16.9% yoy respectively.
  • Other income for the quarter was up by 66.9% yoy to Rs60cr.
  • Tax rate for the quarter stood at 35.5%, 160bps higher than the base quarter.

IIFL Technical View:

Britannia Industries Ltd is currently trading at Rs.3,133.95, down by 78.85 points or 2.45% from its previous closing of Rs.3,212.80 on the BSE.
The scrip opened at Rs.3,185.10 and has touched a high and low of Rs.3,202 and Rs.3,103 respectively. So far 5,00,942 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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