Britannia Industries Q2 Results Preview: PAT likely to increase 7%; management commentary on rural demand to be in the spotlight

Packaged foods major Britannia Industries is set to report its financial results for the July-September period earnings on Wednesday, November 1, 2023. Analysts widely expect the biscuit maker to stage a strong quarterly performance.  

According to Zee Business research, Britannia is expected to report a profit after tax (PAT) of Rs 526 crore for the quarter ended September 30, an increase of 7 per cent on a year-on-year basis. Zee Business analysts estimate the biscuit maker's revenue for the quarter under review to come in at Rs 4,517 crore, a 3 per cent year-on-year rise amid softening input costs. 

Analysts forecast the FMCG major to report earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 775 crore for the three-month period as against Rs 712 crore in the corresponding quarter a year ago. 

Margin at the company is also seen edging higher during the September quarter to 17.2 per cent owing to a fall in palm oil prices. Analysts further anticipate the multinational FMCG player to log 3 per cent growth in volumes during the quarter ended September.

The key focus, however, shall be the management’s commentary on rural demand.

Shares of Britannia in the last 1-year have zoomed 17 per cent, while its 3-year return is 27 per cent.

The consensus recommendation from 36 analysts for the stock is ‘Hold’, with 16 of them suggesting a ‘Strong buy’ on the counter, Trendlyne data shows.

Ahead of its Q2 results, shares of Britannia Industries towards the close of the session on Tuesday traded in the red and were down 0.88 per cent at Rs 4423.9.

Britannia Industries, with a m-cap of Rs 1.08 lakh crore is a large-cap company. The company is primarily engaged in the manufacture of biscuits, cakes and rusks.