Britannia Industries shares will be in focus on November 12 after the JimJam manufacturer released its results report for the quarter ended September 30, which came in below forecasts.
According to an exchange filing, the FMCG player reported a consolidated net profit of Rs 531.5 crore, down 9.4 percent from Rs 586.5 crore the previous year.
In the reporting quarter, revenue from operations was Rs 4,667.6 crore, up 5% from Rs 4,432.88 crore in the same period last year. The quarter was affected by decreasing demand for consumer goods, particularly in metropolitan regions, combined with rising inflation.
The company's total expenses climbed by 8% during the quarter, primarily to higher commodity prices such as wheat and cocoa. At 9.25 a.m., the company's shares fell 2.4 percent on the NSE to Rs 5,304.25 per share.
Goldman Sachs, an international brokerage, stated Q2 results were significantly lower than expected. Volume growth was in the upper single digits, while revenue growth was lower than anticipated. The EBITDA margin fell sharply and is projected to remain under pressure as input costs rise in H2FY25.
The brokerage retained its 'neutral' rating on Britannia Industries, with a price objective of Rs 5,350 per share.
Morgan Stanley observed that Britannia Industries' guidance may be subject to downside risk due to inflationary pressures on demand and profit. Despite posting a miss on all fronts in the second quarter, the brokerage maintained its 'equal-weight' estimate on the FMCG major. It had a target price of Rs 5,424 each.
Nomura, a Japanese brokerage, also maintained its 'neutral' rating, saying Britannia Industries reported another quarter of lower-than-expected performance. Investec agreed, maintaining its 'hold' rating as the biscuit producer reported another failure on margins.
Britannia Industries' shares have increased by about 15% over the last year, trailing the benchmark index Nifty 50, which has risen by 25%.
