 "Britannia Industries")
Indian bread and biscuits maker Britannia Industries Ltd on Friday reported a bigger-than-expected 47% jump in quarterly profit as strong demand and past price hikes helped expand margins.
Consumer goods companies globally hiked prices of products or reduced quantities to offset cost inflation and protect their earnings margins.
Britannia, which sells the Marie Gold and Good Day brand of biscuits, reported a consolidated net profit of Rs 559 crore ($68.43 million) in the quarter ended March 31, compared with Rs 380 crore a year earlier.
Analysts, on average, expected the firm to report a profit of Rs 503 crore, per Refinitiv IBES data.
Total revenue from operations rose more than 13% to Rs 4,023 crore, helped by an expansion in its distribution network.
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Britannia's earnings are in line with rivals Nestle India and Marico, which also reported a double-digit increase. Earlier in the day, Parachute oil-maker Marico said that rural sector weakness "has most likely bottomed out."
India's retail inflation eased towards the end of the quarter and is likely to drop further in this fiscal year. Easing inflation and rising disposable incomes are expected to drive consumer spending, fuelling a further recovery in demand.
"We are ...closely monitoring the commodity situation in the country, especially around wheat and sugar," Managing Director Varun Berry said while acknowledging the benefits of easing palm oil and packaging material costs.
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