You are here: Home » Companies » Results
Business Standard

Britannia Industries posts 3% drop in fourth quarter profit at Rs 360 cr

The firm was impacted by a rise in commodity prices.

Britannia Industries | commodities | Q4 Results

Press Trust of India  |  New Delhi 


FMCG major on Tuesday reported a 3 per cent decline in consolidated net profit at Rs 360.07 crore in the fourth quarter ended March 31, impacted by rise in commodity prices.

The company had posted a consolidated net profit of Rs 372.35 crore in the same quarter a year ago, said in a regulatory filing.

Consolidated total revenue from operations during the quarter under review stood at Rs 3,130.75 crore as against Rs 2,867.70 crore in the year-ago period, a growth of 9 per cent.

The company, however, said it incurred higher expenses in the fourth quarter at Rs 2,701.87 crore as compared to Rs 2,488.88 crore in the corresponding period previous year. The cost of materials consumed stood at Rs 1,532.35 crore during the fourth quarter as against Rs 1,307.97 crore in the corresponding period previous fiscal.

Commenting on the performance, Managing Director Varun Berry said, "On the commodity cost front, palm oil, packing material and dairy products witnessed sudden and steep increases while strategic buying helped the company manage the cost increases better. We are evaluating the long term impact of these increases to action necessary price increases while ensuring competitiveness."

During the quarter, he said, "We continued focussing on the basic building blocks of our business, direct reach, rural distribution and brand building. Our cost efficiency programme for the year delivered the targeted giving us strong cost leadership."

Berry further said in the fourth quarter the company implemented three transformational digital projects namely S4 HANA, an Online Dealer Management System and an Integrated Vendor Management System.

"The delivery of these projects necessitated shutdown of operations for a few days in March which impacted primary billing for the quarter," he added.

However, Berry said, "We are confident that with all the core systems getting upgraded and integrated we are well poised to take our business efficiencies to the next level while leveraging the large amounts of data available to build business intelligence and analytics."

For the fiscal ended March 31, the company posted a consolidated net profit of Rs 1,850.59 crore as against Rs 1,393.60 crore in the previous year, a growth of 33 per cent.

Consolidated total revenue for FY21 was at Rs 13,136.14 crore as against Rs 11,599.55 crore, the company said.

"The year has been difficult and challenging in every possible way. Despite the adverse conditions, we managed to deliver good in terms of topline growth, profitability improvement and market share gains," Berry said.

As the country reels under the second wave of the coronavirus pandemic, Britannia Industries said, "In these unprecedented times, we have put the physical and emotional wellbeing of our employees and their families above everything else."

Employees who are working in the frontline are provided financial protection through insurance and other means in addition to special leaves and unstinted organizational support, it added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, April 27 2021. 20:01 IST