Shares of Britannia Industries were on the climb on Thursday after the company’s financial results for the second quarter beat analysts’ expectations.
What Happened: The company’s consolidated net profit, including its popular Marie Gold biscuits, surged 19.6% from a year ago to reach ₹586.5 crore. This performance outperformed street estimates of ₹547.9 crore.
During the quarter, Britannia Industries reported a 1.2% growth in revenue, totaling ₹4,432.9 crore, missing an expected ₹4,555.4 crore. Operating profit also jumped 22.6% to ₹872.4 crore versus estimates of ₹803.4 crore. The company’s margin stood at 19.7%, exceeding the anticipated 17.6%.
Despite a challenging business environment amid two years of high inflation, Vice-Chairman and Managing Director Varun Berry expressed satisfaction with the robust performance. In response to softened commodity prices during the quarter, Britannia Industries implemented price reductions on select key brands to remain competitive in the face of strong local competition, which somewhat affected quarterly revenue growth, he added.
The company remains watchful of the volatile global commodity prices, given the ongoing geopolitical turmoil in the Middle East and Russia. It said its strategy focuses on increasing market share while sustaining profitability.
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Britannia Industries said it will maintain its optimism regarding the rural segment’s potential, even amidst reports of rural slowdown, continuing to expand its rural distribution during the quarter.
Price Action: Shares of Britannia were up 3.18% at ₹4,537.15 at the start of trade on Thursday.
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