Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Britannia Industries 2QFY21 results - YES Securities

Posted On: 2020-10-19 22:13:13

Better than expected margins offset the miss on topline growth; valuations relatively comfortable now

- Result summary - Overall performance ahead of estimates as better than expected margins offset the miss on topline growth; revenue/EBITDA/PAT growth of 12%/37%/23% respectively.

- Topline - Revenue growth of 12% yoy (around 9% volume growth) to Rs 34.2bn, a slightly higher than expected decline in growth trajectory from 27% growth witnessed in 1Q.

- Margins - Gross margins improved 230bps yoy given moderate RM inflation and a better mix while EBITDA margins saw a sharper 370bps increase to 19.8% given continued benefits of efficiency gains across supply chain, wastages and fixed costs.

- Earnings - PAT growth of 23% was lower than EBITDA growth of 37% owing to higher tax rate and higher interest expenses on the bonus debentures issued recently.

- Key operational highlights - Full range of products back in market, increased focus on distribution efficiency, reduced distributor inventory and moved closer to a normal A&P spend environment.

- Adjacent business update - All adjacent businesses also delivered healthy and profitable growth.

- Input cost outlook - Expect stable input prices going ahead given good monsoons and harvest.

- View - We maintain our neutral stance on the stock for now and will revisit our estimates post the earnings call. While higher than industry growth prospects in the current environment given affordability and aggressive innovation and ramp-up in direct distribution are key positives, limited success in non-biscuit segments and risks to current level of margins offset the positives to a large extent. Recent underperformance though has brought down valuations to 40x FY23E earnings, which can drive some upside in the near-term.

Shares of BRITANNIA INDUSTRIES LTD. was last trading in BSE at Rs.3773.8 as compared to the previous close of Rs. 3747.55. The total number of shares traded during the day was 16654 in over 2838 trades.

The stock hit an intraday high of Rs. 3795 and intraday low of 3744.2. The net turnover during the day was Rs. 62864724.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Views of HDFC Securities and Acuité Ratings & Research on Q2FY21 GDP Numbers

Rollover Report for November 2020 - December 2020: Angel Broking

Initiating Coverage on Godrej Properties - The housing factory - HDFC Securities

Burger King IPO - Angel Broking

Rollover Analysis - Record foreign inflows pushes Nifty to 13k - YES Securities

Ceramic tiles industry - Market share gains sustain for top branded players - ICICI Securities

Gas sector - CGD: Competition to hit margins, volumes and lead to derating - ICICI Securities

Cement - Prices resilient in Q3; consensus upgrades to continue - ICICI Securities

Specialty chemicals - Price trend in Sep-20 - ICICI Securities

Timken India - Q2FY21 Company Update - ICICI Direct

Upgrade in target price of IDFC First Bank - Angel Broking

Laurus Labs stake acquisition in Richore Lifesciences - Angel Broking

Shares of Lakshmi Vilas Bank (LVB) suspended from trading - Angel Broking

Initiating Coverage on Sundram Fasteners - Fastening growth - HDFC Securities

Astral Poly Technik - Scalability to further improve with storage tanks foray - ICICI Securities

Vardhman Special Steel - Q2FY21 Company Update - ICICI Direct

Initiating Coverage - Advanced Enzyme Technologies - ICICI Direct

L&T - Secures Large Contract - Nov 25, 2020 - Angel Broking

Alembic Pharmaceuticals - Tentative Approval for JV - Angel Broking

Drug launch by Lupin - Tacrolimus Capsules - Angel Broking

Gujarat Gas - Nov 25, 2020 - Angel Broking

Metropolis Healthcare - Nov 25, 2020 - Angel Broking

NTPC - Showcase of strength & competitiveness - ICICI Securities

Telecom - Market Share TRACKER - Bharti is narrowing the gap on incremental market share vs RJio - ICICI Securities

Cochin Shipyard - Q2FY21 Result Update - ICICI Direct

Engineers India - Q2FY21 Result Update - ICICI Direct

Rupee - Nov 24, 2020 - Reliance Securities

FMCG Sector Update - Recovery unlocked; lower growth divergence - HDFC Securities

Engineers India - Consultancy segment outperformance - ICICI Securities

Engineers India - Q2 FY21 Result Update - YES SECURITIES

Motherson Sumi Systems - Company Update - Virtual Investor Conference - ICICI Direct

Mutual Fund Review - November, 2020 - ICICI Direct

Sadbhav Engineering - Q2FY21 Company Update - ICICI Direct

IRB Infrastructure - Q2FY21 Company Update - ICICI Direct

Vodafone Idea fund raising - Angel Broking

Rupee - Nov 23, 2020 - Reliance Securities

Crude Oil - Nov 23, 2020 - Reliance Securities

Q2FY21 Bank Result Quick Review - Angel Broking

Banks & NBFC's Sector Update Report - Yet another watershed moment? - HDFC Securities

Galaxy Surfactants - EBITDA/kg has an upside risk - ICICI Securities

Diagnostics - COVID-19 tests continue to trend higher - ICICI Securities

Banking & Financial Services - Sector Update - Nov 22, 2020 - ICICI Direct

Dalmia Bharat Sugar - Q2FY21 Company Update - ICICI Direct

Balkrishna Industries - Industry export growth momentum continues - ICICI Securities

Covid Recovery Pulse - Festive positivity continues in auto retails, E-way bill generation improves... - ICICI Direct

Quant Pick - Exide Industries - ICICI Direct

Shankara Building Products - Q2FY21 Company Update - ICICI Direct

Triveni Engineering - Q2FY21 Company Update - ICICI Direct

Initiating Coverage on Sudarshan Chemical - Leaping into the league of giants - HDFC Securities

Earnings Wrap Q2FY21: Earnings outperform, post Covid recovery picks up steam - ICICI Direct

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019