Britannia Q1 beats street; net soars 67% to Rs 190 cr

Q1 EBITDA also rose 70 percent at Rs 289 crore against Rs 170 crore while EBITDA margins was at 14.3 percent vs 9.5 percent year-on-year.

On a standalone basis, Q1 net profit was at Rs 168 crore, up 55.6 percent from Rs 108 crore (Y-o-Y). Revenues grew 13 percent to Rs 1847 crore against Rs 1634 crore (Y-o-Y).     Varun Berry, MD of the company says, "We have passed off the benefits of benign commodity prices and made our brands more affordable to the consumers. We continued our efforts to expand our distribution footprint and ensure efficiency in operations through reduction in wastage tight management of fixed costs. We moved ahead on our innovation journey with the launch of Pure Magic Chocolush during the quarter."

During the quarter, its gross margins expanded 380 basis points to 42.6 percent led by soft input costs. Subdued prices of palm oil, wheat and sugar pushed margins higher while premiumisation efforts further aided operational gains. Raw material costs was 6 percent at Rs 1004 crore versus Rs 948 crore Y-o-Y.

However, advertising spends is still higher which has partially countered margins. In Q1, ad spend was higher by 16 percent at Rs 160 crore.

At 12:08 hrs Britannia Industries was at Rs 3,177.00, up Rs 41.75, or 1.33 percent on the BSE.