Britannia's prospects promising on improving demand, lower input prices

While brokerages are positive on the stock, any resurfacing of inflation or increased competitive intensity are potential risks

Fast moving consumer goods (FMCG) major Britannia produced good results for the fourth quarter of the 2022-23 financial year (Q4FY23) and the outlook seems promising with the whole FMCG sector seeing some demand revival.

Britannia’s consolidated Q4FY23 revenue increased by 11 per cent year-on-year (YoY) to Rs 4,023 crore and earnings before interest, tax, depreciation and amortisation (Ebitda) margins improved significantly to 19.9 per cent from 15.5 per cent a year ago, aided by price increase and favourable forward cover on wheat futures.

Cost of raw materials to revenue stood at 55.1 per cent (62 per cent a year ago