Britannia Industries Q2 net up 23% to Rs 495 crore; revenue rises 12 pc to Rs 3,419 crore

Food company Britannia Industries Ltd on Monday reported a 22.96 per cent increase in consolidated net profit to Rs 495.20 crore for the quarter ended September.

The company had posted a net profit of Rs 402.73 crore in the July-September period a year ago, Britannia Industries said in a BSE filing.

Total revenue from operations climbed 12.15 per cent to Rs 3,419.11 crore during the quarter under review as against Rs 3,048.44 crore in the year-ago period.

Total expenses were at Rs 2,822.02 crore, up 7.80 per cent from Rs 2,617.64 crore earlier.

Britannia Industries Managing Director Varun Berry said this quarter the company got its full range of products to the market, focussed on efficiency in distribution, followed continuous replenishment system of distribution and inched closer to normalcy in advertisement and promotions.

Besides, all the adjacent businesses delivered a healthy profitable growth, he said.

"On the cost front, we witnessed moderate inflation in the prices of key raw materials and expect the prices to be stable going forward given the positive outlook on monsoon and harvest," he said.

It sustained a large part of the efficiency gains that the company witnessed in the previous quarter as supply chain efficiencies, reduction in wastages and fixed costs leverage.

"These measures helped us sequentially sustain the shape of our business and record a massive 390 bps increase in operating profit during the quarter vs. last year," he said.

On the outlook, the company said it is keeping a close watch on macro-economic factors, changes in laws, evolving consumer behaviour and is framing its medium-term strategy.

"We are confident of performing well in these tough times with the agility in our action and passion of the team," Berry added.

Shares of Britannia Industries Ltd on Monday settled at Rs 3,773.80 on BSE, up 0.70 per cent.