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Britannia shares gain 2% despite Q3 net profit crumbling 40%
Britannia Industries’ shares gained 2.3 percent in early trade on February 7 as earnings report for the quarter ended December 2023 were in line with estimates, despite the net profit falling 40 percent on-year. However, the net profit in base quarter included an exceptional gain due to the joint venture agreement with (France's) Bel SA for the cheese business. On February 6, Britannia reported a 40 percent fall in its consolidated net profit at Rs 556 crore for the third quarter of this fiscal, compared to a net profit of Rs 932 crore a year ago. A poll of six brokerages predicted net profit at Rs 566 crore. As of 9.25 am, shares of Britannia Industries were trading at Rs 5,120.8 apiece on the NSE. The muted growth in Q3 FY24 comes on the back of a high base, some price cuts, high competition and low single-digit volume growth. Shares of Britannia Industries settled at Rs 5,015 on the NSE, down 2.14 percent on February 6. Revenue from operations rose marginally to Rs 4,256 crore from Rs 4,196 crore in the same quarter last fiscal. Analysts had expected revenue growth at 3 percent YoY at Rs 4,303 crore for the quarter. In a report, Nuvama Institutional Equities said that Britannia Industries’ focus states outperformed other regions in terms of growth, despite a generally subdued rural demand. The FMCG major continued to expand its direct reach in an attempt to accelerate its rural journey. It partnered with more than 29,000 rural distributors during the quarter. “International business performed well with robust double-digit growths across key markets. It actioned judicious price corrections (over the last 12 months), which helped it maintain competitiveness and gain market share,” the brokerage said. Source - MONEYCONTROL NEWS
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