ICICI Securities: Britannia Industries Q1 Driven By Tailwinds And Good Execution 
Tiger brand cookies, made by Britannia Industries Ltd., are arranged for a photograph in Mumbai, India. Photographer: Scott Eells/Bloomberg News  

ICICI Securities: Britannia Industries Q1 Driven By Tailwinds And Good Execution 

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.

ICICI Securities Report

Britannia Industries Ltd first quarter revenue grew 27% - strong 22% volume growth and 5% realisation growth equally driven by mix and price hike. Tailwinds of accelerated category growth consumers staying at home and market share gains for Britannia (strong brand positioning, direct distribution expansion, execution edge) are likely to continue in rest of FY21.

Upstocking of a lean supply chain channel inventory has reduced to approximately 3 days from 11 days pre-Covid-19 may support growth, if underlying demand moderates. That said, we highlight the risk of a potential volume decline in FY22 assuming normalcy returning and consumers spending less time at home. Lower input inflation, cost controls and operating leverage likely to drive earnings growth in FY21. Interactive Consumer Database (ICD)s to group companies were flat QoQ was Rs 6.3 billion as of March 20.

Click on the attachment to read the full report:

ICICI Securities Britannia_Q1FY21_results.pdf


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