Britannia Industries Q2 Results: Profit Up 19.6%, Margin Beats Estimates

Britannia Industries Ltd.'s profit rose in the second quarter of fiscal 2024, beating analysts' estimates.

The consolidated net profit of the Marie Gold biscuit-maker increased 19.6% over the previous year to Rs 586.5 crore in the July-September quarter, according to an exchange filing on Wednesday. That compares with the Rs 547.9 crore consensus estimate of analysts tracked by Bloomberg.

Britannia Industries Q2 FY24 Highlights (Consolidated, YoY)

• Revenue up 1.2% to Rs 4,432.9 crore, as against an estimate of Rs 4,555.4 crore.

• Operating profit rose 22.6% to Rs 872.4 crore, as compared with an estimate of Rs 803.4 crore.

• Margin at 19.7% versus 16.3%. Analysts had forecast it at 17.6%.

"We delivered a good performance in a challenging environment on the back of two years of high inflation," Varun Berry, the company's vice-chairman and managing director, said in a statement.

As the commodity prices started to soften this quarter, the biscuit-maker took price cuts in some of its key brands to stay ahead of the curve amid stiff local competition. This has partly impacted the quarterly revenue growth.

With the ongoing strife in the Middle East and Russia, the global commodity prices remain volatile. "We are being watchful of the situation and its impact on our business. Our strategy will remain focused on driving market share while sustaining profitability," he said.

"Our potential in rural (segment) continues to remain high and hence, expansion in rural distribution continued despite reported rural slowdown," said Berry.

During the quarter, Britannia Industries commenced operations in its new greenfield factory in Bihar, besides its recent additions in Uttar Pradesh and Tamil Nadu.

"With capacity and capability enhancements planned in Ranjangaon Food Park, we are well poised to further extract productivity and enhance competitiveness in these growing markets," Berry said.

Shares of Britannia Industries closed 0.92% lower on Wednesday, as compared with a 0.47% fall in the benchmark Nifty 50. The results were declared after market hours.