Britannia Industries taking price hikes of around 6.5% in order to combat high commodity inflation

Britannia Industries shares closed at Rs 4,872, lower by 1.7 percent.

Britannia Industries is in the process of taking price hikes to the tune of  6-6.5 percent amid a high inflationary and low demand environment.

In the earnings call with investors and analysts for the quarter ended December, the firm's management shared that there was a two percent price hike for the quarter, while Q4FY25 will see another 2.5 percent hike. Further, Q1FY26 will see a hike of around 1.5 percent, as the company aims to protect its margins and profitability. However, the management shared that it was prepared for further adjustments if inflation persists.

"Volumes do take a beating when there is a price increase. There is an arbitrage between

volumes and revenue, but you know, you've got to do what you want to do," said the firm's management.

"And if this inflationary trend continues, if we have to take slightly more price increases, that will be decided as we move into the next year. But we are very well prepared to be able to counter

the inflationary trends," he added.

Investors sold off Britannia Industries' stock after the conference call, as it failed to enthuse optimism in traders. The shares settled at Rs 4,872 per share, lower by 1.7 percent on the NSE.

Also Read | Britannia Q3 profit rises 4.5% to Rs 582.3 cr; revenue up 7.9%

Britannia Industries reported a 4.5 percent year-on-year rise in net profit for the third quarter, reaching Rs 582.3 crore, up from Rs 557 crore in the same period last year. Revenue increased 7.9 percent to Rs 4,592.6 crore from Rs 4,256.3 crore YoY, as price hikes helped offset rising commodity costs.

The company, known for brands like Jim Jam and NutriChoice, saw EBITDA grow 2.9 percent to Rs 844.9 crore from Rs 821.1 crore, while margins declined to 18.4% from 19.3 percent YoY.

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