Britannia Industries Q3 Results Review - Volumes To Improve; Current Margins Near Peak: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Britannia Industries Ltd. Q3 FY24 headline performance was largely in-line with our subdued estimates. Volume growth for the quarter at 5.5% (3-3.5% pack growth) surprised us positively (versus estimate 3% volume growth). This along with higher price cut QoQ and lower other operating income meant that topline was in-line with our expectations. Gross margin improved ~100 basis points QoQ (40 bps ahead of our expectation), even after taking price cuts, largely led by commodity basket deflation of 3-4% in Q3 FY24. Judicious pricing actions have also meant that market share trends have come back to growth from being flat in H1 FY24. Going ahead, we expect volume growth momentum to improve further but negative pricing along with peak margin base will mean that earnings growth will likely remain subdued in the very near term. Maintain Neutral rating with a revised target price of Rs 5,140..Click on the attachment to read the full report:.Britannia Q3 Results: Profit Dips On Muted Rural Demand, Competition.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Britannia Industries Q3 Results Review - Volumes To Improve; Current Margins Near Peak: Yes Securities

Britannia Industries Ltd. Q3 FY24 headline performance was largely in-line with our subdued estimates.

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