Britannia Q4 beats street; net up 65.7% to Rs 87.8 cr
Britannia Industries' net profit increased 65.7 percent and total income rose by 13.65 percent during the January-March quarter. Operating profit margin (OPM) grew quite strongly by 270 basis points.
Bakery confectionery products manufacturer Britannia Industries beat street estimates with its fourth quarter standalone net profit rising 65.7 percent year-on-year to Rs 87.8 crore on other income and better operational performance, despite an increase in tax expenses.
"... results are a reflection of our focus on driving consumer off-take and operational efficiencies to generate sustainable and profitable growth," Vinita Bali, managing director of the company said.
Total income rose by 13.65 percent to Rs 1,502.4 crore in January-March quarter FY13 as against Rs 1,322 crore in a year ago period, which was in-line with expectations.
Analysts on an average had expected the company to report a profit at Rs 60 crore on total income of Rs 1,516 crore for the quarter.
Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 45 percent Y-o-Y to Rs 116 crore during the quarter, which too was higher-than-forecast of Rs 90 crore.
Operating profit margin (OPM) grew quite strongly by 270 basis points to 8.8 percent as against 6.1 percent year-on-year and estimates of 5.9 percent.
Sharp improvement in margin was also on account of decline in raw material cost.
Cost of raw material consumed slipped to Rs 648.37 crore in fourth quarter from Rs 655.24 crore Y-o-Y.
Other income rose by 106.26 percent year-on-year to Rs 21.10 crore during the March quarter. However, tax expenses increased 2.57 times Y-o-Y to Rs 39.88 crore for the quarter.
Britannia recommended a dividend of Rs 8.50 per share for the year ended March 31, 2013.
The stock lost just 0.21 percent Friday to close at Rs 574.45 on Bombay Stock Exchange.