Latest news with #BritanniaIndustriesLtd
Business Standard
11 hours ago
- Business
- Business Standard
Britannia Industries Ltd soars 1.2%
Britannia Industries Ltd is quoting at Rs 5675, up 1.2% on the day as on 12:49 IST on the NSE. The stock is up 3.4% in last one year as compared to a 7.96% spurt in NIFTY and a 3.5% spurt in the Nifty FMCG index. Britannia Industries Ltd is up for a third straight session in a row. The stock is quoting at Rs 5675, up 1.2% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.43% on the day, quoting at 25109.55. The Sensex is at 82487.47, up 0.36%. Britannia Industries Ltd has risen around 1.19% in last one month. Meanwhile, Nifty FMCG index of which Britannia Industries Ltd is a constituent, has risen around 2% in last one month and is currently quoting at 55802.7, up 0.28% on the day. The volume in the stock stood at 94370 shares today, compared to the daily average of 2.6 lakh shares in last one month. The benchmark June futures contract for the stock is quoting at Rs 5698.5, up 1.38% on the day. Britannia Industries Ltd is up 3.4% in last one year as compared to a 7.96% spurt in NIFTY and a 3.5% spurt in the Nifty FMCG index. The PE of the stock is 62.82 based on TTM earnings ending March 25.
Mint
13-05-2025
- Business
- Mint
Britannia's cost-cutting efforts may not impress the Street without a volume growth rebound
Britannia Industries Ltd's consolidated revenue growth of 9% year-on-year in the March quarter (Q4FY25) to ₹4,432 crore was primarily led by higher price realisation, given that volume growth was tepid at about 3%. The biscuit maker did not see any additional volume boost from the Mahakumbh mela in the quarter. It's worth noting that Britannia's volume growth rate has been decelerating. The measure was 8% in the first two quarters of FY25 and then slipped to 6% in Q3FY25. Raw material hit Q4FY25 gross margin contracted sharply by 480 basis points (bps) on-year to 40.1% due to a steep rise in raw material prices. Sequential trends indicate that the raw material pricing pressure has not eased. Wheat flour, forming almost 30% of the raw material costs, rose 9% quarter-on-quarter and is unlikely to decline soon, thanks to a higher minimum support price for wheat. One basis point is one-hundredth of a percentage point. Also Read: Nifty reshuffle: Zomato and Jio Financial could edge out Britannia and BPCL in India's benchmark index Palm oil, another key input accounting for 30% of the raw material costs, was up 7% on-quarter. The only respite was sugar prices, which stayed flat sequentially and yearly. Sugar constitutes about 20% of the raw material cost. Sugar price is likely to rise going ahead because sugarcane prices were recently raised by the government and sugar output is expected to fall about 15% on-year in the sugar year ending September 2025. The key Still, higher realization meant sequential gross margin expansion of 140bps and nearly the same quantum of rise in Ebitda (margin to 18.2% in Q4FY25. A positive surprise on the margin front can be ruled out as the management is satisfied operating at the current level of Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin. Thus, it is critical that Britannia clocks double-digit volume growth to boost profit. Management does not intend to take substantial price hikes unless there is further inflationary pressure. It would rather focus on cost-cutting initiatives to aid margin and expect cost savings of about 2.5% of revenue in FY26. Also Read: Pidilite's growth gets stickier, but valuation a sore spot The company sees the non-biscuit segment growth rate outpacing the biscuit segment by 50% in FY26. However, the non-biscuits segment forms only 30% of total sales, and the remaining comes from biscuits. As things stand, one can hope for about 5% volume growth in FY26 and early double-digit sales value growth, aided by price hikes taken in FY25. This may not be enough to entice investors. With single-digit volume growth over the last four quarters, investors have every reason to worry about the stock's rich valuation at 53X price-to-earnings multiple based on Bloomberg consensus estimates for FY26. Also Read: Asian Paints sees a greener FY26; analysts see red
The Hindu
01-05-2025
- Business
- The Hindu
Britannia Industries gets over ₹25 cr demand from tax authority
Britannia Industries Ltd on Thursday said it has received an order from the GST authority demanding over ₹25 crore pertaining to classification of a product sold by it and input tax credit in respect of certain goods. In a regulatory filing, the company said the Additional Commissioner of CGST & CX, Kolkata North, has passed an order covering tax periods from July 2017 to March 2023. "The order has demanded tax of ₹25,41,73,150 along with equivalent penalty and applicable interest," Britannia Industries Ltd said. The order has been passed pursuant to a show cause notice issued by the Directorate General of GST Intelligence dated August 3, 2024, pertaining to classification of a certain product sold by the company and input tax credit in respect of certain goods, it added. Stating that the order is appealable on legal merits, the company said it will "take necessary actions, including exercising the legal remedies available under the GST law".
