Britannia Industries Q3 results update!
Last updated: 07 Feb, 2021 | 03:19 am
Profit beats estimates: Britannia Industries has reported a 22% on-year rise in net profit to Rs 453 crore, beating street estimates. Analysts had earlier anticipated a profit of about Rs 425 crore. The bottomline was aided by discretionary cost cuts undertaken by the company.
Revenue rises: Consolidated revenue rose 6% on-year to Rs 3,166 crore, below the estimated Rs 3,240 crore. General Trade, which is the largest channel for the company, continues to grow at a healthy pace on the back of buoyancy in rural economy and recovery in urban markets. The other channels such as Modern Trade, Institutional Business etc continue to face challenges with lower footfalls in stores and offices, schools, railway services coming back to normalcy gradually, Britannia said.
Operating margin rises: Operating margin expanded to 19.3% from 16.8%. Analysts had pegged the metric at 18.2%. Moderate inflation in input costs, supply-chain efficiency and decrease in advertising spends aided the margin expansion. Demand for essentials which were at elevated levels at the beginning of the year due to stocking has started to normalise with diversification of the consumer purchase basket, said the company's CEO.
While the topline growth has been below estimates, Britannia has posted a healthy set of operational and bottomline numbers. Despite rise in input costs, the company was able to expand its margins, thanks to accelerating cost efficiencies.
Going forward, the company intends to accelerate the pace of new launches, strengthen its distribution infrastructure and continue its focus on brand building to drive market share growth. The measures announced in Union Budget 2022 are also expected to provide a boost to demand in the upcoming quarters.