Key highlights from Britannia Industries Limited (BRITANNIA) Q4 FY22 Earnings Concall
- Abneesh Roy from Edelweiss Securities asked about the current expectation on price hike and in FY22 65% hike was coming through grammage cut and if there will be any change in that ratio. Varun Berry MD replied that the grammage cut might end up being even higher than that as the company doesn’t know where it is headed as far as inflation is concerned.
- Abneesh Roy from Edelweiss Securities also enquired about the industry volume growth in 4Q and the share gains, if it’s coming only from the number 2 player or even from the smaller player. Varun Berry MD said the gains are coming from the smaller regional players; it’s a mix of both. The industry growth will be flattish to negative.
- Percy Panthaki from IIFL asked that assuming current spot prices remain where they are for the next 12 months, what kind of additional price hikes does BRITANNIA need to take in its portfolio. Varun Berry MD answered that if the spot prices continue it will probably be about a 10% increase that will be required, above what’s already taken.
- Kunal Vora from BNP Paribas asked if the company is looking to vacate some of the low price points. Varun Berry MD said that low unit price points in a country like India are impossible to vacate. BRITANNIA added that currently it is not in any position to vacate the INR5 segment.
- Kunal Vora from BNP Paribas also asked about the contribution of low unit packs. Varun Berry MD replied that the price point packs, the INR5 and INR10 are approximately 50-55% of the company’s total mix. So it’s fairly large and BRITANNIA will have to nurture this business.
- Kunal Vora from BNP Paribas asked if the company is on track to achieve the INR2000 crore target for its dairy business in the next 5-6 years. Varun Berry MD replied that maybe it’s a moving target, but certainly BRITANNIA would want to get to INR2000 crores mark.
- Kunal Vora from BNP Paribas also asked about the Ranjangaon plant update. Varun Berry MD said that Ranjangaon plant is moving quite well and the company has got all the equipment. So all the lines are in line to commercialize in the next 3-4 months, except the processed cheese line, which will take 6-8 months.
- Shirish Pardeshi from Centrum Capital enquired about the company’s market share gain in the last two years from FY19 onwards. Varun Berry MD replied that share growth has been fairly good. Approximately the company has gained about 80 basis points in the last two years.
- Shirish Pardeshi from Centrum Capital also asked when does the company expect to see meaningful contribution from the international business. Varun Berry MD clarified that BRITANNIA is not looking at a big bang change to the international business. So it’s not making that much of an impact, but this year could be a year of change as international is concerned.
- Shirish Pardeshi from Centrum Capital asked about the roadmap for ICD, if it’s going to go up and if ICD will get resolved maybe in the next 4 quarters. N. Venkataraman CMO answered that it’s not going to go up. That is for sure. The attempt is to see how BRITANNIA can dilute them going forward.
Cochin Shipyard Limited (NSE:COCHINSHIP) Q4 FY22 Earnings Concall dated May. 26, 2022 Corporate Participants: Madhu S Nair -- Chairman & Managing Director Jose V J -- Director Finance Analysts: Vastupal Shah
Can you guess the name of the company that was listed during the IPO frenzy in 2020 and is the second largest player in the Indian municipal waste management industry?
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