Moneycontrol Bureau
Bakery and dairy products manufacturer Britannia Industries said consolidated profit grew by 13.15 percent to Rs 219.13 crore in April-June quarter compared with Rs 193.66 crore in year-ago period. It was ahead of estimates and was driven by other income & better-than-expected operational performance.
Revenue matched analysts' estimates, rising 9 percent to Rs 2,196.6 crore on yearly basis, though deteriorating geopolitical situation and currency fluctuations in certain geographies like Middle East and Africa impacted growth.
"We continue to outpace the market with go to market strategy of creating a robust distribution network with unrelenting focus on rural and our weak states," Varun Berry, managing director, said, adding new launches during the quarter also boosted growth.
The category growth remained subdued during the quarter, but he is hopeful that a good monsoon and impact of 7th pay commission will aid consumption and boost demand going forward.
Operating profit increased 9.7 percent year-on-year to Rs 316.2 crore and margin expanded by 10 basis points to 14.4 percent in the quarter ended June 2016, aided by cost measures.
Commodity prices have firmed up significantly over the last two quarters and the company has initiated a combination of price increase & cost efficiency measures to address this, Berry said.
Profit was estimated at Rs 203 crore on revenue of Rs 2,211 crore for the quarter. Operating profit was expected at Rs 306 crore and margin at 13.8 percent, according to average of estimates of analysts polled by CNBC-TV18.
Other income grew sharply by 64.5 percent to Rs 39.43 crore compared with year-ago period.
At 11:18 hours IST, the scrip of Britannia Industries was quoting at Rs 3,019.75, up Rs 138.10, or 4.79 percent amid high volumes on the BSE.Posted by Sunil Shankar Matkar
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