Margins improving; rains to boost performance: Britannia

In an interview with CNBC-TV18, Vinita Bali, CEO of Britannia said the margins have been improving consistently and the company's performance is going to depend on the monsoon and government policy actions. Besides, Bali considers an increase in consumer spending to be a challenge. 

Below is the edited transcript of the interview on CNBC-TV18.

Q: This time you have seen a top-line growth of about 11% year on year, can you tell us what kind of volume growth have you done this quarter and are you seeing any kind of pressure on volumes?

A: Let me put numbers in context. On a consolidated basis, in this quarter our top-line has grown by 12% and our net profit has gone up by 18%. On a standalone basis our top-line has grown by 11% and our profit from operations actually has increased by 120 basis points.

The increase from Q1 of last year to first quarter of this year in terms of profit from operations is about 45%. We are actually seeing a double digit growth which is what we have been talking about earlier. This is made up of a volume change of about 3 to 4%. The rest is coming from a mix which is really a higher proportion of the differentiated products that we sell and a little portion of about 2-3% is coming from pricing.