Biscuit maker Britannia Industries held onto gains in trade on Friday, May 9, after reporting higher-than-expected earnings for the three months ended March FY2025.
Britannia reported a 9 percent year-on-year rise in revenue to Rs 4,432.19 crore, while net profit grew 4 percent to Rs 560 crore. EBITDA rose 2.3 percent to Rs 805.17 crore. However, margins contracted to 18.2 percent from 19.4 percent in the same quarter last year.
The results positively surprised the markets, as most brokerages and analysts had pencilled in a degrowth in profit for the quarter.
At 12.05 pm, shares of Britannia Industries were quoting Rs 5,448 per share, up around one percent.
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“With a high single-digit value growth of 9 percent during the last quarter of the year amidst a tight consumption scenario, the performance underscores our resilience in a challenging operating environment marked by rising commodity prices, changing channel dynamics, and subdued demand across FMCG categories," said the firm, in a filing with the exchanges.
Varun Berry, Vice Chairman & Managing Director, added, "Strategic Pricing actions, nimble approach in emerging channels, combined with robust cost efficiency initiatives delivering savings of approximately 3 percent of revenue, helped us sustain our growth and profitability as we navigated the year effectively."
"As we enter the new financial year, we will continue to closely monitor commodity prices and evaluate their impact, while staying focused on driving healthy, profitable growth and strengthening our market leadership," he added.
So far, brokerages have maintained their ratings and target prices, waiting for the firm's earnings call, on Monday, May 12, to revisit their outlook on the firm.
So far over the past 12 months, the shares of the firm have risen around 7.5 percent. However, over the past five months, the shares have traded in a range, eking out minor gains of 0.25 percent.
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