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Britannia Industries Sheds Over 2% After Net Profit Falls 23% In September Quarter

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Britannia Industries Sheds Over 2% After Net Profit Falls 23% In September Quarter

Shares of Britannia were last trading 2.27 per cent lower at Rs 3,634.35 on the BSE.

Shares of Britannia Industries declined more than two per cent on Tuesday, November 9, a day after the company announced its July-September quarter results for the financial year 2021-22. Britannia Industries opened on the BSE at Rs 3,561, inching to an intra day high of Rs 3,637.85 and an intra day low of Rs 3,536.60, during the trading session so far. Shares of Britannia were last trading 2.27 per cent lower at Rs 3,634.35 on the BSE.

The country’s leading biscuit manufacturer reported a net profit of Rs 384.22 crore, compared to Rs 498.13 crore in the corresponding period last year, marking a decline of 22.9 per cent year-on-year. The company’s revenue from operations in the second quarter of the current fiscal stood at Rs 3,607.4 crore, compared to Rs 3,419.11 in the same quarter last year, registering a growth of 5.5 per cent year-on-year.

”On the cost front, the global economy continued to witness supply led constraints across various input materials fuelling inflation. As a result, we are witnessing unprecedented inflation in market prices of palm oil at 54 per cent, industrial fuel at 35 per cent and packaging materials at 30 per cent leading to an overall inflation in the quarter of 14 per cent.

While we have been able to partially mitigate the impact through strategic forward covers and accelerated cost efficiency programs, we have also initiated necessary price increases across the portfolio all of which will address the cost push and normalise profitability,” said Mr. Varun Berry, Managing Director, Britannia Industries.

On the NSE, Britannia opened at Rs 3,590, registering an intra day high of Rs 3,639 and an intra day low of Rs 3,535.15, during the session so far. It was last trading 2.35 per cent lower at Rs 3,630.15 on the NSE.

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