Britannia Industries a major player in the Indian foods market: Religare
Britannia Industries’ Q2FY11 top-line growth of 27.5% Y-o-Y was in line with market expectations, though profits fell short.
By ET Bureau |
RESEARCH: RELIGARE
RATING: HOLD
CMP: Rs 393
Britannia Industries is a major player in the Indian foods market with leadership position in the bakery category. Its brand portfolio includes Tiger, Marie Gold, Good Day, 50:50 and Treat. Britannia Industries’ Q2FY11 top-line growth of 27.5% Y-o-Y was in line with market expectations, though profits fell short.
The 50% drop in adjusted PAT to Rs 32.8 crore stemmed from lower margins and higher interest as well as tax costs. Britannia’s net sales for Q2FY11 increased by 27.5% Y-o-Y to Rs 1,090 crore. The decline in margins was led solely by a gross margin erosion of 550 bps Y-o-Y, which could be on account of high-cost wheat and sugar inventory lying with the company.
This in turn negated the benefit of a 120 bps Y-o-Y reduction in marketing expenses to 7.1% (of sales). Britannia has launched NutriChoice Diabetic Friendly Essentials Ragi and Oats cookies.
RATING: HOLD
CMP: Rs 393
Britannia Industries is a major player in the Indian foods market with leadership position in the bakery category. Its brand portfolio includes Tiger, Marie Gold, Good Day, 50:50 and Treat. Britannia Industries’ Q2FY11 top-line growth of 27.5% Y-o-Y was in line with market expectations, though profits fell short.
The 50% drop in adjusted PAT to Rs 32.8 crore stemmed from lower margins and higher interest as well as tax costs. Britannia’s net sales for Q2FY11 increased by 27.5% Y-o-Y to Rs 1,090 crore. The decline in margins was led solely by a gross margin erosion of 550 bps Y-o-Y, which could be on account of high-cost wheat and sugar inventory lying with the company.
This in turn negated the benefit of a 120 bps Y-o-Y reduction in marketing expenses to 7.1% (of sales). Britannia has launched NutriChoice Diabetic Friendly Essentials Ragi and Oats cookies.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
