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02/02/2023 10:41

Britannia Inds gains as Q3 PAT soars 151% YoY

Britannia Industries jumped 3.06% to Rs 4,502.95 after the company's consolidated net profit surged 151.2% to Rs 932.39 crore on 16.2% increase in net sales to Rs 4,101.49 crore in Q3 FY23 over Q3 FY22.

The net profit includes an exceptional gain (net of tax) of Rs 359 crore, pursuant to a joint venture agreement with Bel SA for the Cheese business and consequent sale of 49% equity stake in its subsidiary & fair valuation of the residual stake of 51%.

Operating Profit during the quarter grew 55% year on year to Rs 760 crore. On a consolidated basis, profit before exceptional items and tax in Q3 FY23 stood at Rs 773.71 crore, up 52.79% from Rs 506.83 crore in Q3 FY22.

During the quarter, total expenses rose 11.28% YoY to Rs 3,475.31 crore while cost of materials consumed increased 15.4% to Rs 2,098.26 crore and employee expenses climbed 39.35% to Rs 178.24 crore.

The consolidated sales for the nine months ended 31 December 2022 grew 16% to Rs 12,093 crore, operating profit grew 24% to Rs 1,869 crore and net profit (including exceptional item) grew 54% to Rs 1,763 crore.

Varun Berry, vice chairman & managing director, said: We have witnessed positive growth momentum over the last few quarters. Our Go-to-market strategy and investments in brands & innovation have helped us register a robust topline growth of 16% YoY. Our growing consumer franchise and brand strength is evident in the consistent market share gains over the past 39 quarters. Continued focus on enhancing direct reach coupled with rural agenda have helped us deliver solid growths over the past few quarters.

On cost & profitability front, our pricing actions and intensified cost efficiency program helped mitigate the inflation. On the back of opportunistic buying and moderation in inflation this quarter, our operating margins improved by 330 basis points, he added.

Britannia Industries is one of India's leading food companies. It manufactures India's favorite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold. Britannia's product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt.