Q4 Results: Britannia’s Profit Meets Estimates
Britannia Industries Ltd.’s quarterly profit rose as expected even as the maker of Good Day biscuits said it witnessed a slowdown in recent months.
Net profit rose 11.8 percent year-on-year to Rs 294 crore in quarter ended March, according to its exchange filing. That compares with the Rs 301-crore average of analyst estimates tracked by Bloomberg.
Revenue increased 10.3 percent year-on-year to Rs 2,799 crore for the three-month period. That’s in line with Rs 2,803-crore estimate.
“We continued the momentum in the base business through distribution expansion, heightened innovation, and cost efficiency programmes,” Varun Berry, managing director at Britannia, said in the statement accompanying the filing.
The operating income, or earnings before interest, tax, depreciation and amortisation, rose 10 percent year-on-year to Rs 436 crore in the January-March period. Operating margin, however, remained flat at 15.6 percent during the quarter.
Berry said that the company witnessed a slowdown in the market in recent months. “However, this should get neutralised with a favourable monsoon forecast and stable government post elections.”
The company recommended a dividend of Rs 15 per share for the year ended March, which will be declared at its August 9 annual general meeting. The dividend, if declared, will be paid on or before Aug. 21.
Shares of the fast-moving consumer goods company fell 2.4 percent on Tuesday compared with a 0.34 percent decline in the Nifty FMCG Index.