Britannia share price: Britannia gains 3% as topline shows healthy growth in Q3

Britannia gains 3% as topline shows healthy growth in Q3

31 Jan , 2022 By : monika singh

NEW DELHI: Shares of Britannia climbed 3 per cent in early trade on Monday despite the biscuit maker reporting an 18 per cent decline in the October-December net profit as investors cheered a healthy growth in revenues for the quarter.

The view on the stock was also favourable as Britannia has initiated price hikes ahead of its competition amid a sharp rise in input costs, the top management said.
The scrip rose to a high of Rs 3,612.95 as against Rs 3,509.65 at the previous close on the National Stock Exchange.

The total revenue from operations came in at Rs 3,574.98 crore in the quarter under review, up 10.06 per cent against Rs 3,248.17 crore in the corresponding quarter last year.
The company management said on the cost front, the company continued to witness an increase in commodity prices with an inflation of 4 per cent sequentially (quarter on quarter) and 20 per cent over last year.

“As market leaders, we actioned price increases ahead of the competition. However, the upward trajectory in prices of commodities and fuel impacted profitability, which led us to action further price increases and accelerate cost efficiency programs,” Varun Berry, Managing Director, Britannia was quoted as saying.

The company’s operating margin stood at 13.67 per cent, against 14.09 per cent in Q2FY22 and 17.78 per cent in Q3FY21. The net profit margin was at 10.17 per cent, against 10.43 per cent and 13.94 per cent, respectively.

“While the rural markets across FMCG witnessed significant slowdown, we were able to maintain a significant competitive advantage through our focus to enhance rural footprint and our diligent market practices, which is reflected in the robust topline growth and consistent gain in market share,” Berry said.