Centrum Broking: Britannia Industries - Strong Execution Led To 22% Volume Growth In Q1 FY21

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.In Q1 FY21 Britannia Industries reported robust growth in revenues/ Ebitda/ Profit after Tax at 26.4%/ 81.7%/ 104.7% led by strong execution resulting in volume growth at 21.5%, as resilient demand during Covid-19 pandemic for premium biscuit category surprised with double digit category growth. Nonetheless, pace of new product launches reduced as management chose to apply 80:20 rule by producing high throughput products due to supply chain constraints. Its emphasis on rural markets helped in gaining market share in the Hindi speaking belt.Management said its focus on rural distribution, innovation, cost cutting efforts and adjacent business helped to deliver profitable growth. Despite 3% raw material cost inflation Britannia reported all time high Ebitda margin at 21.0% over 634 basis points YoY due to better product mix, efficiencies reduced distance, zero wastage and cost optimization. Considering Q1 FY21 performance we have increased FY21E/ FY22E revenues and earnings by 2.6%/0.9% and 12.8%/6.9%, respectively..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Centrum Broking: Britannia Industries - Strong Execution Led To 22% Volume Growth In Q1 FY21

Centrum Broking: Britannia Industries - Strong Execution Led To 22% Volume Growth In Q1 FY21

Choose a plan