Britannia Industries announces provisional dividends of Rs 35 / share

Mumbai: Cookie maker Britannia Industries announced a provisional dividend of Rs 35 per share for the 2019-20 fiscal year, ahead of its March quarter earnings announcement.

Cookie maker Tiger and Good Day is likely to post single-digit profit growth in the quarter ending March as it was partially clouded by rising commodity prices, the pandemic outbreak of coronavirus amid the slowdown in consumption.

Brokerage firm Edelweiss Securities sees a 1.6 percent yoy (yoy) rise in after-tax earnings, with a 6.9 percent drop in earnings. It also projects a 10.10% drop in EBITDA in the fourth quarter of 2016.

“We expect Britannia to record a volume drop of about 8 percent, year-over-year, in the slowdown in consumption,” said the brokerage, adding that there is an inflationary trend in commodity prices that will lead to a compression of the gross margin of 80 basis points.

HDFC Securities believes that Britannia may report a 9.5% increase in net profits, while net sales and EBITDA may contract 2% and 4% year-over-year, respectively.