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Britannia Q1 Result | Consolidated profit slips 14% to Rs 336 crore, misses estimates

The profitability was impacted as certain commodities, relevant to bakery business, such as Wheat & Industrial fuel witnessed steep sequential inflation during the quarter ranging between 15 and 20%

August 04, 2022 / 03:59 PM IST
Britannia Industries

Britannia Industries

 
 
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Britannia Industries Ltd on August 4 reported a 14 percent year-on-year decline in consolidated profit after tax (PAT) at Rs 336 crore for the quarter ended June (Q1FY23). On a sequential basis, profit slipped 11.6 percent.

The profit for the quarter missed the CNBC-TV18 estimates of Rs 410 crore by 18 percent.

Consolidated revenue for the confectioner rose 8.7 percent year on year to Rs 3,701 crore. On a sequential basis, revenue increased 4.2 percent. CNBC-TV18 had polled for a revenue of Rs 3,750 crore.

“We have been delivering consistent topline growths in this challenging economic environment, reflecting our team’s execution strength & Go-To-Market strategy and evident in our consistent market share gain over the last 36 quarters”, said Varun Berry, Managing Director, while commenting on the performance for the quarter. “We continue to expand our market leadership through reach and diligent market practices as our rural footprint witnessed further additions and we now reach ~27,000 Rural Preferred Dealers, which also reflects in rural market share gain being better than urban”.

“On cost & profitability front, global factors continued to impact the economy, which led to further surge in inflation during the quarter”, said Berry. “Certain commodities, relevant to bakery business, such as Wheat & Industrial fuel witnessed steep sequential inflation during the quarter ranging between 15 and 20%”.

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While we actioned necessary price increases to cover this, the full impact of price correction should reflect in the ensuing quarter, Berry added. “Further, drop in prices of some of the commodities like Palm Oil & Crude alongwith our intensified cost efficiency program should help sustain & improve profitability in the coming quarters”.

EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter was 10 percent lower at Rs 501 crore as against an EBITDA of 554 crore during the same period last year. On a sequential basis, the EBITDA is down 9 percent from Rs 550 crore achieved during the previous quarter. CNBC-TV18 poll had forecasted an EBITDA of Rs 576 crore.

EBITDA margins at 13.5 percent for the quarter have contracted by 280 bps on year and by 200 bps on quarter. As per the CNBC-TV18 poll, the EBITDA margins were forecasted at 15.4 percent.

The net margin at 8.9 percent for the quarter is down 230 bps points on year and 160 bps lower on quarter.

Britannia closed Rs 5.05 higher at Rs 3,775.05 on August 4 at the National Stock Exchange. The stock is trading higher by five percent over the past one year but is flat over the past one month.
Gaurav Sharma
first published: Aug 4, 2022 03:36 pm
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