Britannia Industries Limited (BSE: 500825 | NSE: BRITANNIA) Latest Q4 FY2025 Results
1. Q4 FY2025 Financial Results
| Metric | Q4 FY2025 | Q4 FY2024 | YoY Δ |
|---|---|---|---|
| Revenue from operations | ₹ 4,432.19 Cr. | ₹ 4,069.36 Cr. | +8.9% |
| Other income | ₹ 63.02 Cr. | ₹ 57.34 Cr. | +9.9% |
| Total income | ₹ 4,495.21 Cr. | ₹ 4,126.70 Cr. | +8.9% |
| EBITDA (Pre‐exceptionals) | ₹ 795 Cr.* | ₹ 798 Cr.* | –0.4% |
| EBITDA margin | ~17.7%* | ~19.6%* | –190 bps |
| Profit before tax | ₹ 751.93 Cr. | ₹ 734.62 Cr. | +2.4% |
| Profit after tax | ₹ 559.13 Cr. | ₹ 536.61 Cr. | +4.2% |
| EPS (basic) | ₹ 23.25 | ₹ 22.35 | +4.1% |
* EBITDA and margin approximated from reported OPM (17.7%) and cost structure .
2. Latest Results Highlights
- Resilient top‐line growth of 8.9% YoY despite commodity inflation.
- Strong operating leverage maintained: OPM at 17.7%, only 190 bps below Q4 FY2024.
- Net profit up 4.2% to ₹ 559 Cr., driven by tight cost controls.
- Healthy cash generation: Operating cash flow for FY2025 at ₹ 2,480.7 Cr. vs. ₹ 2,573 Cr. last year .
3. Key Metrics & Financial Position
| Metric | Value |
|---|---|
| Market Cap | ₹ 1,29,852 Cr. |
| Current Price (₹) | 5,391 |
| 52-Week High / Low | 6,473 / 4,506 |
| P/E (FY2025) | 59.1× |
| P/BV | 29.8× (₹ 5,391/₹ 181) |
| ROCE | 53.0% |
| ROE | 52.9% |
| Net Debt | ₹ (1,247 Cr.) |
| Reserves & Surplus | ₹ 4,332 Cr. |
| Dividend Yield | 1.36% |
| Promoter holding | 50.6% (unchanged, 3 yr) |
4. Valuation & Dividend
- Valuation premium reflects category leadership and exceptional returns on capital.
- At 59× P/E, Britannia trades at ~2 SD above its five‐year average P/E of ~38× — demanding strong growth delivery.
- Dividend yield of 1.36% is modest; however, the board has recommended a final dividend of ₹ 75/sh., taking full‐year dividend yield to ~1.75% .
5. CAPEX & Growth Strategy
- FY2025 CAPEX stood at ₹ 374.9 Cr., focused on capacity upgrades and new line installations .
- Planned FY2026–27 CAPEX of ~₹ 600 Cr., earmarked for:
- Greenfield biscuit plant in Manesar (North India).
- Enhancements in dairy & rusk facilities.
- Automation & digital supply‐chain platforms.
- Strategy pillars:
- Premiumisation – Health-oriented and high-margin products (multigrain, protein biscuits).
- Rural & digital penetration – Deepening reach via e-commerce and direct-to-store.
- International expansion – Scaling markets in West Asia, Africa, and Southeast Asia.
6. Credit Rating & Financial Risk
- CRISIL has reaffirmed the company’s ‘CRISIL AAA/Stable/CRISIL A1+’ ratings on bank facilities & debt instruments (Sept 30, 2024) .
- Leverage remains low (Net debt/EBITDA <0.4×).
- Liquidity: Strong FCF conversion; unutilised working-capital lines of ₹ 1,200 Cr.
7. Management Quality & Governance
- Chairman: Mr. Nusli N. Wadia – stewardship spanning three decades, emphasis on brand & innovation.
- Stable promoter stake (50.6%) ensures aligned vision; professional board with diverse FMCG and finance expertise.
- Statutory audit by Walker Chandiok & Co. LLP, with unmodified opinion on FY2025 results .
8. Future Growth Plans & Expansions
- New SKUs: Launch of fortified-wheat & millet-based biscuits by Q3 FY2026.
- Distribution: Target 10% uplift in Tier III‒V urban outlets; deepen rural reach via micro-warehousing.
- M&A: Scouting acquisitions in high-growth snacking and health-foods startups.
9. Long‐Term Projections & Returns
| Horizon | Revenue CAGR | EPS CAGR | Expected EPS (₹) | Total Return¹ |
|---|---|---|---|---|
| 5 years (2030) | ~10% | ~12% | ~₹ 163 | 15–18% p.a. |
| 10 years (2035) | ~9% | ~11% | ~₹ 268 | 13–16% p.a. |
| 15 years (2040) | ~8% | ~10% | ~₹ 384 | 12–14% p.a. |
| 20 years (2045) | ~7% | ~9% | ~₹ 502 | 11–13% p.a. |
₁Assumes reinvestment of dividends, target P/E maintains near current band.
10. Conclusion
Britannia’s dominant market position, unmatched ROCE/ROE and clear growth roadmap justify its valuation premium, albeit requiring sustained execution. For investors seeking a long‐duration play in branded foods with predictable cash flows and disciplined capital allocation, Britannia merits close consideration—recognising valuation tailwinds may moderate near term.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a qualified advisor before making any investment decisions.
Leave a Reply
You must be logged in to post a comment.