Britannia Industries surges post Q1 results

The stock moved higher by 8% to Rs 3,104 on the BSE.

Britannia Industries has moved higher by 8% to Rs 3,104 on the BSE in intra-day trade after the company reported a consolidated net profit of Rs 221 crore against an average analyst estimate of Rs 210 crore for the quarter ended June 30, 2016 (Q1FY17). The packaged foods company had registered a profit of Rs 195 crore in the same quarter last year.

Total income from operations during the quarter under review increased 9% year-on-year (YoY) to Rs 2,197 crore against Rs 2,014 crore in the corresponding quarter of previous fiscal.

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) profit increased 9.7% YoY at Rs 316 crore, while margins improved to 14.41% from 14.32%.

Edelweiss Securities was expected Britannia to clock revenue growth of around 6% YoY driven by volume growth of 8% YoY. The brokerage house expected EBITDA of Rs 299 crore and margins of 13.9% for the quarter.

Commenting on the performance, Varun Berry, managing director said, the category growths remained subdued during the quarter; however, I am hopeful that a good monsoon and impact of 7th pay commission would aid consumption and boost demand going forward.

At 11:55 am, the stock was up 7.5% at Rs 3,100 on the BSE, as compared to 0.28% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-folds with a combined 755,174 shares changed hands on the BSE and NSE so far.