Britannia - Q4FY13 Result Update - Nirmal Bang

- Result ahead of expectations

- The standalone net sales grew 13.5% YoY to Rs 1486.6 crs driven by 3.5% growth in volumes, with the balance being price hikes and product mix improvement. The sales was up by 2.3% QoQ.

- The profitability was significantly above street estimates with EBITDA growth of 64.1% YoY to Rs 131.9 crs and margins up 280bps YoY to 8.9%. Gross margins rose 20bps YoY led by price hikes while A&P was flat YoY at 8.4%. Employee costs fell 70bps YoY due to one-off costs in the base quarter whereas other expenses and conversion costs were down 180bps and 30bps YoY respectively due to reduction in overheads.

- PAT was up by 65.7% YoY to rs. 87.9 crs and by 54.2% QoQ. The significant jump in Other income led a jump in profitability of the company.

Source : Equity Bulls

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