Britannia Q3 PAT declines 37% to Rs 29 cr

Bakery products maker Britannia Industries today posted 36.94 per cent drop in net profit after tax to Rs 29.10 crore for the third quarter ended December 31, 2009 over the corresponding period last fiscal.

The company had a net profit after tax of Rs 46.15 crore for the same quarter last year, Britannia Industries said in a filing to the Bombay Stock Exchange (BSE).

"Unprecedented inflation in commodities has challenged industry margins. Whilst we have continued to insulate our consumers from this cost inflation," said Managing Director of Britannia Vinita Bali.

Net sales increased to Rs 881.39 crore for the quarter under review from Rs 818.28 crore for the same period previous fiscal.

"All round cost effectiveness and improved sales mix will remain building blocks of Britannia's profit improvement plan, but if the current situation continues judicious price increase may be inevitable," she said.

For the nine-month period ended December 31, 2009, net profit after tax declined to Rs 135.54 crore from Rs 139.54 crore in the same period previous year.

Net sales rose to Rs 2,471.14 crore in the nine-month period under review from Rs 2,350.18 crore during the same period last fiscal.

Shares of the company closed at Rs 1,600, up 1.33 per cent from the previous close on the BSE.