Britannia Industries stock hits all-time high ahead of Q1 earnings, what brokerages expect

Britannia Industries share price hit all-time high today as the FMCG firm was set to announce its earnings for the quarter ended June 2020. Britannia Industries share price gained 2.47% to Rs 3,949 compared to the previous close of Rs 3,853 on BSE. The large cap stock has gained 5.01% in last 2 days. Britannia Industries share traded higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The share has gained 28.29% since the beginning of this year and risen 38.84% during the last one year. Total 0.42 lakh shares changed hands amounting to turnover of Rs 16.35 crore on BSE. 

In afternoon session,  the share was trading 1.10% or Rs 42 higher  at Rs 3895 on BSE. Market cap of the firm stood at Rs 93,745 crore. Meanwhile brokerages are positive on Q1 earnings of the firm.

Axis Capital expects nearly 22 per cent YoY revenue growth (largely volume-led) at Rs 3,285.3 crore due to a surge in in-house food consumption trends. EBITDA is seen climbing 40.3 per cent YoY at Rs 553.6 crore while EBITDA margin is seen at 16.9 per cent, up 223 bps YoY led by leverage/A&P cuts. Net profit is expected to rise 57.4 per cent YoY to Rs 419.8 crore.

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Nirmal Bang Securities said  Britannia is expected to deliver a strong performance with sales (revenue) growth of 22 per cent year-on-year (YoY) at Rs 3,294.4 crore, led by base business volume growth of 20 per cent versus a lower base of 3 per cent. Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin is likely to expand by 150 basis points (bps) YoY to 16.1 per cent on account of declining prices of key raw materials and cost efficiencies. Adjusted profit after tax (PAT) is seen rising 52 per cent YoY to Rs 401.6 crore due to a lower tax rate compared to the base quarter.

In Q4 of previous fiscal, Britannia Industries posted a 26 per cent rise in its consolidated net profit to Rs 375 crore, helped by lower tax costs. Consolidated revenue rose 2 per cent to Rs 2,808 crore compared to Rs 2,764 crore in the same period last year.

In previous fiscal, Britannia Industries reported a 21 per cent growth in its consolidated net profit at Rs 1,402.63 crore against net profit of Rs 1,159.12 crore in FY19. Consolidated income of the company climbed 5.48 per cent to Rs 11,878.95 crore in FY20 compared to Rs 11,261.12 crore in FY19.

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