Britannia trades flat ahead of Q3 earnings; here’s what to expect

Shares of Britannia traded almost flat ahead of its financial results for the quarter ended December 31. The scrip closed 0.06 per cent down at Rs 3250.75 in morning trade.

On the other hand, the benchmark BSE Sensex was down 141 points, or 0.34 per cent, at 41,177.

Brokerages see double-digit growth in net profit in Q3FY20. An assessment by Motilal Oswal Financial Services projected 15.30 per cent year-on-year (YoY) rise in net profit at Rs 346.70 crore in December quarter. However, it expects 8 per cent YoY increase in net sales.


Market participants should zero in on the near-term volume growth commentary, especially on rural areas, raw material cost outlook and comments on NCD.

On the other hand, Kotak Institutional Equities sees 24.20 per cent YoY growth in net profit on 6.70 per cent rise in net sales. The brokerage house also projected 9.20 per cent YoY growth in EBITDA.

“We expect another subdued quarter with 3 per cent volume growth. The company should benefit from forward contracts in key agri commodities partly offset by some pain in dairy products. Operating leverage benefit and moderation in media spends should drive 36 bps YoY expansion in EBITDA margins,” the brokerage house said.