Britannia Industries hits new high on strong Q4 results

The stock soared 12% to Rs 2,555, also its record high on the NSE, in early morning trades.

Britannia Industries has soared 12% to Rs 2,555, its record high on the NSE in early morning trades, after reporting a strong 55% year-on-year jump in consolidated net profit at Rs 167 crore for the quarter ended March 2015 (Q4).

The company, a major player in the Indian foods market with leadership position in the bakery category, had posted a profit of Rs 108 crore in the corresponding quarter last year.

The consolidated operational revenue during the quarter grew 13.9% to Rs 2,063 crore as against Rs 1,812 crore in the year-ago quarter.

Analysts on an average had expected profit of Rs 140 crore on revenues of Rs 1,987 crore.

“The company's operating margin expanded by 200 basis points despite no pick up in the market growth. This was achieved through strengthening of our fundamental building blocks with increased depth in distribution, tight management of fixed costs and through increased cost efficiencies,” Varun Berry, managing director, Britannia Industries, said.

Meanwhile, the board of directors has recommended a dividend of 800% (Rs 16 per share) for the year 2014-15.

At 0924 hours, the stock was up 8% to Rs 2,471 on the NSE.