Britannia Industries Ltd — Q1 FY25
Britannia reported Q1 FY25 revenue of INR 4,130 crore, up 4% YoY, with operating profit of INR 680 crore (16.5% margin), up 10% YoY.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
67%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Pricing and market share in cheese business
Asked by Abneesh Roy, Nuvama
Gave directional share but no exact number; pricing actions vague.
no specific market share number givendeferred to future
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Question
do you need to work further on the pricing aspect? ... would you have a market share in cheese?
Varun Berry, Vice Chairman and Managing Director
pricing, we've taken a few actions ... our premium is slightly lower ... The market share on cheese, we are very small ... we are just about in double digits.
Answered
Medium priority
Impact of hot beverages, travel, and elections on biscuit demand
Asked by Abneesh Roy, Nuvama
Directly addressed each factor with clear statements.
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Question
in Q1, there were two headwinds and one tailwind for biscuit consumption ... hot beverages consumption ... hot out-of-home travel ... election rallies
Varun Berry, Vice Chairman and Managing Director
Out-of-home, we didn't see any negative impact ... Election rallies don't, do not impact us that much ... we sailed through those this year as well.
Answered
High priority
Pricing growth outlook for FY25 given commodity inflation
Asked by Avi Mehta, Macquarie
Gave specific inflation range and pricing intent.
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Question
with the marginal inflation that you have seen in commodity costs, how would you ... share your thoughts on the FY 2025 pricing growth?
Varun Berry, Vice Chairman and Managing Director
we might have to take a little bit of pricing ... even if there is inflation, it'll probably be in the range of 4%-5%.
Evasive
Medium priority
EBITDA margin level for adjacent businesses
Asked by Avi Mehta, Macquarie
Did not provide EBITDA margin; shifted to net margins qualitatively.
no number givenreframed to net margins
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Question
would it be possible to share where do we stand at the EBITDA margin level now?
Varun Berry, Vice Chairman and Managing Director
We do not do a separate consolidation on our adjacency business level ... if you look at your net margins, they are reasonable.
Answered
High priority
Price deflation trend and future pricing actions
Asked by Arnab Mitra, Goldman Sachs
Clarified deflation vs rollbacks and gave future inflation estimate.
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Question
The deflation in pricing this quarter seems to be slightly more than last quarter ... do you see any incremental changes here going ahead?
Varun Berry, Vice Chairman and Managing Director
there is no deflation, really ... we have taken price rollbacks ... now is the time to start to consolidate ... we expect a 4%-5% inflation in the coming months.
Partial answer
Medium priority
Spike in other operating income and PLI benefit
Asked by Arnab Mitra, Goldman Sachs
Explained source but did not quantify ongoing run rate.
no steady-state run rate given
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Question
The other operating income ... very sharp spike, YoY. Is there any bunching of PLI here?
Varun Berry, Vice Chairman and Managing Director
this is for our factory in Ranjangaon ... we got some benefits from the past year.
Answered
Medium priority
Status of baked snacks extruded Time Pass launch
Asked by Percy Panthaki, IIFL Securities
Clearly stated it's still in test phase.
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Question
Recently, I saw your baked snacks, extruded Time Pass ... is this something recent? ... any kind of views on how you want to take this forward?
Varun Berry, Vice Chairman and Managing Director
This is in experimental stage ... we are doing some market tests ... it's not like a rollout across the country.
Answered
Medium priority
Why extruded snacks launch is taking so long
Asked by Percy Panthaki, IIFL Securities
Explained reasons for delay without dodging.
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Question
hasn't it been really too long for it to be in test phase? ... what is really holding us back here?
Varun Berry, Vice Chairman and Managing Director
there are two or three things ... the outside opportunity ... internal ... we don't want to do anything without really being 100% sure of success.
Evasive
High priority
Target margin range going forward
Asked by Percy Panthaki, IIFL Securities
Refused to give a margin target; emphasized volume growth.
no specific target givenreframed to top-line priority
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Question
what is the sort of margin roughly that we are targeting? Is it going to be a 19%+ number, or are we at this 18%-18.5% kind of number?
Varun Berry, Vice Chairman and Managing Director
I can't give you a pointed answer ... I would not mind if my margins stay at 16% rather than going to 18%, but it's important that we drive top line.
Partial answer
Medium priority
Sustainability of volume growth and impact of heat wave
Asked by Mihir Shah, Nomura
Avoided confirming heat wave impact; gave general optimism.
did not address heat wave specifically
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Question
is there any element of higher than usual in-home consumption due to the extreme heat wave ... do you think these volumes can sustain and inch up further?
Varun Berry, Vice Chairman and Managing Director
getting to high single digit volume growths should not be a big issue ... we will do whatever is necessary to be able to get there.
Partial answer
Medium priority
Other expenses increase and margin outlook
Asked by Mihir Shah, Nomura
Attributed to ad spends but gave no numbers or margin impact.
no quantification of ad spend increaseno margin guidance
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Question
other expenses bit ... costs have gone up. Is this largely due to higher ad spends? ... how should one think about this line item, the margins on operating level?
Varun Berry, Vice Chairman and Managing Director
it was ad spends that we spent on ... we were able to get a bang for our buck during this quarter, with good volume growths.
Answered
High priority
Focus market performance, market share gap, and revenue contribution
Asked by Binay Shukla, PhillipCapital
Provided specific share and revenue contribution numbers.
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Question
how much there is a skill gap between you and number one player in the focus market ... what percentage of revenue is coming from your focus market?
Varun Berry, Vice Chairman and Managing Director; Vipin Kataria, Chief Commercial Officer
our focus market performance has not been great ... average contribution is about 15% odd ... number one player is still at about 50% share.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Drinks revenue expected over INR 200 crores | ₹220 cr | ₹4,250 cr | Understated vs filing |
| Cheese revenue upward of INR 250 crores | ₹250 cr | ₹4,250 cr | Understated vs filing |
| Total dairy business over INR 700 crores | ₹700 cr | ₹4,250 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.