Britannia Q4 net profit up 6% to Rs 211 crore

It offset the impact of commodities' costs rise by changes in inventories, marginally lower expenses

Britannia Industries' net profit grew six per cent over a year in the March quarter, to Rs 211 crore, the food and beverages company said. Net sales were Rs 2,302 crore, up 6.2 per cent.

During the quarter, cost of materials rose 11.7 per cent, due to price inflation of key commodities of above 10 per cent. However, changes in inventories and marginally lower other expenses offset the impact; it also cut advertising cost.

The dairy business saw subdued growth as it shifted focus towards products that should generate higher profit margin. Growth in its international business remained under pressure due to "deteriorating geopolitical situation and currency fluctuations in geographies like the Middle East and Africa", said Varun Berry, managing director.

Adding: "It has been a good quarter in the face of a challenging market environment and sluggish demand scenario post demonetisation. We expect the situation to slowly improve over the next three to six months with the measures announced by the government and the prediction of an above average monsoon this year."

Its push towards direct distribution, keeping an eye on the rural market, had helped it grow during the quarter.

Consolidated profit for 2016-17 rose seven per cent over FY16 to Rs 844 crore; higher raw material costs and tax expenses marginally dented this. It posted Rs 9,232 crore of net sales for the year, up eight per cent. Cost of materials consumed grew 11.7 per cent to Rs 4,840 crore. Total taxes grew six per cent, with a Rs 18 crore deferred tax item.