Britannia net down 51%

CORPORATE SCORECARD

Facing intense competition from ITC Foods and regional players such as Priya Gold, Britannia Industries has posted 51 per cent dip in net profit to Rs 21.2 crore for the second quarter (ended September 30) against in Q2 FY06.

Citing the reason behind the Rs 23 crore decline in profit after tax, the company said its profit was impacted by unprecedented and inordinate inflation of 15-20 per cent in commodities such as wheat, sugar, milk and edible oils.

"For the consumer, biscuit prices have remained firm for the last five-six years. Cost-effectiveness and technical efficiencies have significantly absorbed the extraordinary inflation in all input costs," the company stated in a statement.

Net profit was also impacted by the fact that the one-time exceptional income of Rs 11.7 crore available in the previous period (six months ended September 2005) not recurring in the current period, it added.

Besides these reasons, the company's wage bill moved up slightly, while its advertisement and promotion expenses saw a significant 43 per cent rise even as it was trying to stave off stiff competition from ITC Foods with deeper pockets.