Britannia Q2 profit rises 23% to Rs 495 cr; rebenue up 12% to Rs 3,419 cr

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.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel