Britannia Industries has reported a strong set of numbers in 1QFY18 despite adverse impact of trade pipeline correction before GST roll-out (500bps impact). Consolidated net sales grew by 5.6% YoY to Rs22.2bn on the back of 3% YoY volume growth in core business. EBITDA rose by 2.8% YoY to Rs2.9bn, while net profit marginally declined by 1.5% YoY to Rs2.2bn. Volume growth in the context of GST roll-out is an encouraging sign, in our view. We expect the momentum to improve further in coming quarters with the trade up-stocking, good monsoons and other favourable macro factors. Though a short-term hiccup, we believe that the implementation of GST will increase the pace of conversion from unorganised to organised...