Britannia Q1 Preview: PAT expected to rise 53% YoY on better sales mix, volume growth

economictimes.indiatimes.com:

Britannia Industries is expected to report high double-digit growth in profit for the quarter ended June, aided by both volume and value growth, and better sales mix. Consolidated net profit is likely to rise 53% year-on-year (YoY) to Rs 516 crore, according to an average of estimates given by 11 brokerages. Consolidated revenue from operations is seen to rise more than 11% YoY to Rs 4,122.30 crore.

This will partly be aided by 4-6% growth in volumes, as per analysts. Sequentially though, the performance is likely to be muted, with sales increasing merely 2.5%, while profits declining nearly 8%. The Wadia Group’s flagship company is slated to release its quarterly earnings on Friday.

Here is a gist of analyst expectations from the FMCG major.Kotak Institutional EquitiesThe brokerage is modelling 4.5% YoY growth in domestic volumes (versus 3%/4% in 4Q/3Q) and 7.5% YoY contribution from price-mix, which translates to about 12.5% growth in standalone revenues (versus 16.7% in 4Q, which was partly aided by prior-period PLI income). Revenue growth will be driven by continued share gains, traction in new launches, and distribution expansion, particularly in rural markets. Consolidated revenue growth is expected at 10.2% (reported), dragged by shift of subsidiary revenues to JV.