Britannia Industries' consolidated net profit rose 32.90% to Rs 402.73 crore in Q2 September 2019 from Rs 303.03 crore in Q2 September 2018.
The biscuit maker's total revenue from operations in Q2 September 2019 stood at Rs 3048.84 crore, up by 6.25% from Rs 2869.59 crore the company clocked in the year ago period. Sequentially, revenues of the firm have risen by 12.91% from Rs 2700.35 crore in Q1 June 2019. The result was announced after market hours on Monday, 11 November 2019.
The company's total expenditure rose by 6.64% to Rs 2617.64 crore in Q2 FY20 from Rs 2454.58 crore in Q2 FY19. Total cost of raw materials consumed, which represented nearly 60% of the total expenses of the firm, increased by 8.43% to Rs 1559.95 crore in Q2 September 2019 as compared to the corresponding quarter in the last fiscal.
The company elected to exercise the option permitted under Section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the company has recognised Provision for Income tax for the six months ended 30 September 2019 and re-measured its deferred tax assets basis the rate prescribed in the said section. The full impact of this change has been recognised in the current quarter, the company said.
The firm's total tax expenses fell by 38.73% to Rs 95.51 crore in Q2 September 2019 from Rs 155.89 crore in Q2 September 2018.
Commenting on the performance, Varun Berry, managing director, said: "We continued to grow faster than the market with a sequential revenue growth of 13%. In the base business, we continued our Premiumisation & Innovation journey with the launch of limited edition 'Treat Cream biscuits' & 'Little Hearts Strawberry'. During this phase of sluggish demand, we continued to invest in enhancing our brand equity through focused product campaigns.
"On the cost front, we witnessed moderate inflation in the prices of key raw materials for the bakery business while there was an inordinate increase in milk prices which impacted our dairy business. We, however, accelerated the drive on cost efficiencies & leveraged fixed costs which helped us improve the shape of our business and deliver highest ever operating profits in the quarter," Berry added.
Shares of Britannia Industries ended 1.43% lower at Rs 3116.25 on Monday, 11 November 2019.
BSE, NSE are shut today, 12 November 2019, on account of Guru Nanak Jayanti
Britannia Industries (BIL) is one of India's leading food companies. Britannia's product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt. BIL has a presence in more than 60 countries across the globe.
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