Britannia on May 3 reported a consolidated net profit at Rs 536.61 crore for the March quarter, registering a decline of 3.76 percent from Rs 557.60 crore in the same quarter of the previous financial year.
The total revenue of the company stood at Rs 4,069.36 crore, rising 1.14 percent from Rs 4,023.18 crore in the year-ago quarter, the company said in a regulatory filing.
On a sequential basis, the net profit saw a decline of 3.2 percent over Rs 556.39 crore reported in Q3FY24. The revenue stood at Rs 4,126.70, down by 4.2 percent versus Rs 4,306.89 crore in Q3FY24.
A Moneycontrol poll of 10 brokerages had shown that Britannia’s net profit was expected to fall almost three percent year-on-year to Rs 542 crore from Rs 558 crore in the same quarter previous year. The brokerages also expected to see top-line growth of around 2.4 percent at Rs 4,119 crore during the quarter, up from Rs 4,023 crore during the March quarter of the previous fiscal.
Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 785.5 crore, down 1.7 percent. EBITDA margins declined by 50 bps YoY to 19.4 percent.
The company's board has recommended a final dividend of Rs 73.5 per share for the financial year ended March 31, 2024.
"Our market share rebounded as the year progressed as a result of strategic pricing actions to maintain competitiveness and intensified investments in brands, supported by distribution expansion," Varun Berry, Vice Chairman & Managing Director, said in an exchange filing.
"We significantly expanded our distribution network, reaching approximately 27.9 lakh outlets directly and added around 2,000 rural distributors over the past year. Our focus states surpassed other regions in terms of growth, despite a generally subdued rural demand," he added.
The company remains vigilant about commodity prices and the changing geopolitical landscape to ensure cost and profitability stability. The company's Cost Efficiency Program consistently generates operational savings, equivalent to about two percent of revenues, bolstering healthy operating margins.
The company's investment in brand development and maintaining competitive pricing aim to drive market share while sustaining profits. Moreover, the company remains dedicated to the ESG framework, focusing on People, Growth, Governance, and Resources to foster a sustainable and profitable business model.
Meanwhile, shares of Britannia closed 0.32 percent down at Rs 4,745.15 apiece on the BSE on May 3, ahead of its earnings.
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