Britannia Industries Share Price: Shares of FMCG major Britannia Industries witnessed a strong rally on Friday, August 7. Following the announcement of its April-June quarter results, the stock climbed nearly 4.7 per cent on the BSE to hit an intra-day high of Rs 5,660. The company’s consolidated net profit rose by over 14 per cent year-on-year to Rs 593 crore.
The shares of Britannia Industries, at around 11.20 am, were trading at Rs 5582.20, up Rs 152.20r or 2.80 per cent, from the previous close of Rs 5,430.
Britannia Q1 profit up 14% YoY to Rs 593 cr driven by volume growth
The company had logged a net profit of Rs 520.13 crore in the April-June period a year ago, according to a regulatory filing from the bakery food company.
Revenue from the sale of products was up 9.47 per cent to Rs 4,964.37 crore in the June quarter. Revenue from operations was higher by 8.17 per cent to Rs 4,999.97 crore.
Commenting on the results, MD and CEO Rakshit Hargave said:” The year started with West Asia conflict, leading to a steep increase in cost of fuel and shipment charges across our domestic & international businesses, which we have been able to navigate well during this quarter delivering a healthy volume and value growth.”
The company, facing competition from local rivals, said it is also gaining ground against competition, with profits growing ahead of topline in double digit over last year.
“Most key categories saw positive sequential momentum as we exited the quarter with a mid-teens revenue growth, anchored by rapid scaling in e-commerce and robust growth in General Trade, aided by higher advertisement, influencers & promotion spends,” he said.
Moreover, its International Business also recovered sequentially as supply chain constraints began normalising in last part of the quarter, said Hargave.
Total expenses were at Rs 4,262.24 crore, up 7.27 per cent in Q1/FY27.
Total income, which includes other income, was higher by 8.16 per cent to Rs 5,061.38 crore.
Over the outlook, the company said it will continue to closely monitor the evolving geopolitical situation in West Asia and crude oil volatility for potential impact on international operations and domestic input costs.
“We will remain agile in our actions to deliver healthy, sustainable revenue growth amid an improving domestic demand environment, driven by sharp innovation, strong brand investments, and disciplined margin management through accelerated cost efficiency initiatives,” he said.
Brokerages remain positive on Britannia following the quarterly results. Nuvama Institutional Equities has maintained a ‘Buy’ rating on the stock with a target price of Rs 7,240, indicating a potential upside of approximately 34 per cent from current levels.
Meanwhile, Nomura has also assigned a ‘Buy’ rating to Britannia and set a target price of Rs 6,500, signaling a potential gain of around 20 per cent. However, Nomura noted that EBITDA came in slightly below estimates, partly due to higher advertising expenditure.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
