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
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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