Britannia Industries’ revenue from operations saw a slight increase to Rs 4,256 crore from Rs 4,196 crore in the corresponding quarter of the previous fiscal year. Despite a 40% year-on-year decrease in Net Profit, Britannia Industries’ shares rose by 2.3% in early trade on February 7, as the earnings report for the quarter ending December 2023 matched market estimates.

Nevertheless, the net profit in the base quarter incorporated an extraordinary gain stemming from the joint venture agreement with Bel SA of France for the cheese business. Britannia reported a 40% decline in its consolidated net profit to Rs 556 crore for the third quarter of this fiscal year on February 6, contrasting with a net profit of Rs 932 crore recorded a year prior. A consensus poll of six brokerages anticipated the net profit to be around Rs 566 crore.

At 9:25 am, Britannia Industries’ shares were priced at Rs 5,120.8 each on the NSE. The subdued growth in Q3 FY24 can be attributed to several factors, including a strong base comparison, price reductions, heightened competition, and modest single-digit volume growth. On February 6, shares of Britannia Industries closed at Rs 5,015 on the NSE, marking a decline of 2.14 percent.

Revenue from operations saw a slight increase to Rs 4,256 crore from Rs 4,196 crore in the corresponding quarter of the previous fiscal year. Analysts had anticipated a 3 percent year-on-year revenue growth, expecting it to reach Rs 4,303 crore for the quarter.

According to a report by Nuvama Institutional Equities, Britannia Industries’ focus states exhibited superior growth compared to other regions, despite generally subdued rural demand. The FMCG giant persisted in expanding its direct reach to expedite its rural expansion efforts, collaborating with over 29,000 rural distributors during the quarter.

“The international business demonstrated strong performance, achieving robust double-digit growth in key markets. By implementing prudent price adjustments over the past 12 months, the company managed to uphold competitiveness and increase its market share,” stated the brokerage.

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