BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Britannia Industries Ltd.'s Q2 FY22 result was below our estimates. Revenue growth at 6%YoY on a high base of 12% is healthy. However, steep contraction in gross margin led to higher than expected decline in profit after tax.
Positively, Britannia Industries expects to offset impact of inflation both by taking price hikes (to the tune of one-third) and grammage reduction (two-third) by the end of FY22.
During Q2 FY22 the company has taken 4% price hike and expects benefit from grammage reduction to flow in H2 FY22. Distribution expansion is tracking well.
Britannia Industries expects rural to outperform urban through distribution expansion and penetration. In rural; market share gains stood at 2.5 times versus urban during Q2 FY22.
Modern trade grew 10% higher than traditional channel.
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