Britannia Industries Ltd on February 6 reported a 40 percent fall in its consolidated net profit at Rs 556 crore for the quarter ended December 31, 2023. The company had reported a net profit of Rs 932 crore in the year-ago period. The numbers marginally miss Street estimates as a poll of six brokerages predicted net profit at Rs 566 crore.
Sequentially too, Britannia's profit slipped 5 percent from Rs 587 crore.
The muted growth in Q3 FY24 comes on the back of a high base, some price cuts, high competition and low single-digit volume growth.
Revenue from operations rose marginally to Rs 4,256 crore from Rs 4,196 crore in the same quarter last fiscal. Analysts had expected revenue growth at 3 percent YoY at Rs 4,303 crore for the quarter.
Britannia, which sells Jim Jam and NutriChoice biscuits, reported 2 percent fall in consolidated profit before exceptional items and tax of Rs 761 crore for the third quarter, compared with Rs 774 crore a year earlier.
The company recorded a one-off gain of Rs 376 crore from a stake sale in the year-ago quarter.
Britannia had previously mentioned reducing certain product prices after competitors took advantage of declining raw material expenses to lower prices and attract more consumers.
Shares of Britannia on February 6 closed 2.24 percent lower at Rs 5,006.20 apiece on BSE ahead of the earnings announcement.
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