Britannia Industries Q4 result tomorrow: Double-digit Profit & Revenue growth expected

Britannia Industries board will be meeting on Wednesday, May 1, 2019, to consider and approve the financial results (audited standalone and consolidated) of the Company for the financial year (FY) ended March 31, 2019. Zee Business research analysts expect that the Indian food-products corporation’s profit after taxes (PAT) for the fourth quarter of the FY19 will go up by 14.4 per cent to Rs 301 crore against Rs 263 crore reported for the same quarter a year ago. This growth will be backed by the cost of the raw materials like Palm Fatty Acid Distillate (PFAD) that are used in manufacturing the products, which went down in the fiscal. 

Flat sales will have a negative impact on subsidiary companies (international and dairy) of Britannia.

The company’s revenue is expected to go up by 10.6 per cent YoY to Rs 2,808 crore from Rs 2,537 crore and this growth can be attributed to the sales of the new launches that the company made in the financial year/quarter. In addition, the single-digit volume growth of around 6.5-7 per cent vs a high base of 11 per cent is expected and this growth will also play an important role in increasing the revenue of the company. 

Its earnings before interest, tax, depreciation and amortization (EBITDA) is estimated to grow by 12.8 per cent YoY to Rs 448 crore from Rs 397 crore. The growth in EBITDA is likely to be supported by lower raw material cost. The margin will see slight improvement and go up to 16 per cent from 15.6 per cent. The increased cost of the products will play a pivotal role in improving the margins.