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Britannia Ind Q3 PAT rises 22% YoY

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Capital Market
Last Updated : Feb 08 2021 | 9:50 AM IST

On a consolidated basis, Britannia Industries reported 22.3% rise in net profit to Rs 455.75 crore on 5.8% increase in net sales to Rs 3106.10 crore in Q3 FY21 over Q3 FY20.

The FMCG company's profit before tax rose by 23.4% to Rs 613.73 crore in Q3 FY21 from Rs 497.15 crore in Q3 FY20. Current tax expenses spiked 24.6% to Rs 157.49 crore in Q3 FY21 over Q3 FY20.

Commenting on the performance, Varun Berry, MD said, "General Trade, which is the largest channel for us, 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. Essentials were at elevated levels of demand at the beginning of the year due to pantry up-stocking which has started to normalize with diversification of purchase basket of the consumers. We continue to focus our efforts on the basic building blocks of our business which include direct reach, rural distribution, range selling, higher throughput, salesmen productivity & invest in enhancing our brand equity through focused product campaigns. On the cost front, we witnessed moderate inflation in the materials prices except Palm oil where we witnessed a significant increase. We neutralized the inflation by accelerating our cost efficiencies & sustained the new efficiencies that we witnessed during the Covid-19 induced lockdown. These measures helped us record a 260 bps increase in operating profit during the quarter vs. last year. Going forward, we intend to accelerate the pace of Innovation & new launches, strengthen our distribution infrastructure and continue our focus on brand building to drive growths and market share."

Shares of Britannia Industries fell 1.01% to Rs 3505.45. The company is one of India's leading food companies. Its product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt.

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First Published: Feb 08 2021 | 9:20 AM IST

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