New Research Reports

We maintain our BUY rating on the stock.

For Q3FY25, ITC’s revenue grew 9.1% YoY (-5.5% QoQ) to INR 203,500 Mn, largely in line with our estimates (-1%). EBITDA increased 2.4% YoY (-2.9% QoQ) to INR 63,619 Mn, missed our estimates due to higher-than-expected operating expenses. EBITDA margin contracted by 226bps YoY (+108bps QoQ) to 33.9%.

For Q3FY25, BRITs reported revenue stood at INR 45,926 Mn, up 7.9% YoY (-1.6% QoQ), beat our estimates by 2.1%. Gross margins declined by 515bps YoY (-280bps QoQ) to 38.7%.

Britannia’s Q3FY25 numbers beat estimates on all fronts. Consolidated revenue grew 7.9% y-o-y to Rs. 4,593 crore (higher than our and average street expectation of Rs. 4,499 crore) with standalone revenue growing by 7.7% and subsidiaries’ revenue increasing 13.3%.

Telangana (15% of UB’s revenue) announced a 15% price hike for beer, marking the first hike since FY20. This and strong seasonal demand (on a lower base), cost-saving steps and consistent capability building efforts augur well for the future.

Varun Beverages (VBL) reported a revenue growth of 38% YoY in 4QCY24, led by volume growth of 38% YoY, which was majorly driven by the volume addition from South Africa and the Democratic Republic of Congo (DRC).

With an upside of 5% from the CMP, we maintain our HOLD stance

Britannia Industries (BRIT) posted operating revenue growth of 6% YoY in 3QFY25 (in line) and volume growth of 6% (est. 5%). Other operating income surged 101% due to government grants related to Ranjangaon factory.

Compared to consensus, there was a beat on sales at 1% and on EBITDA at 6%. EBITDA beat on lower SG&A as a % of sales

ITC delivered consolidated revenue growth (ex-hotel business) of 9% YoY (beat) in 3QFY25, mainly led by the cigarette business. EBITDA grew by 2% YoY to INR63.6b. APAT declined 7% YoY to INR48b.