GST impact: Britannia Q1 net dips 1.4% to Rs 216 cr

FMCG major Britannia Industries Monday reported a 1.40 per cent decline in consolidated net profit at Rs 216.12 crore for the June quarter, impacted by the GST rollout and subdued growth in international business.

The company had posted a net profit of Rs 219.21 crore in the April-June period a year ago, Britannia Industries said in a BSE filing.

Its net sales were up 6.41 per cent to Rs 2,300.93 crore as against Rs 2,162.16 crore in the corresponding period of the previous fiscal.

"It has been a good quarter in the face of challenging market environment and de-stocking in trade due to GST. While GST created a short term impact, it is expected to generate a positive momentum going forward," Britannia Industries' MD Varun Berry said.

Britannia's total expenses were up 7.12 per cent to Rs 2,045.76 crore as against Rs 1,909.78 crore.

Its focus on enhancing direct reach along with rural push has helped the firm drive growth and sustain momentum during this difficult time, he added.

"Growth in our international business continued to be under pressure due to deteriorating geopolitical situation and currency fluctuations in geographies like the Middle East and Africa," he said.

"Growth in dairy business has also been subdued primarily due to our focus on driving products with high profitability and reducing our play in the less profitable commoditised products," he added.

Shares of Britannia Industries were trading at Rs 4,197.80 on BSE, up 7.27 per cent.