Britannia Industries Q3 net down -18.56% yoy at Rs371.18cr on higher raw material and inventory costs

28 Jan 2022 , 07:46 PM

Britannia Industries Ltd reported 12.93% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs3,574.98cr. On a sequential basis, the revenues were down by just -0.90%.

During the December 2021 quarter, Britannia reported high single-digit growth in volumes on a yoy basis. Rural markets across the FMCG verticals saw a significant slowdown in the quarter.

Good Day biscuits was re-launched with the concept of “Multiple smiles per pack”. As the market leader, Britannia had effected price increases across categories, although it was not enough to tackle the 20% cost inflation yoy.

For the Dec-21 quarter, the operating profits were down on a yoy basis by -13.07% at Rs489.34cr. During the quarter, Britannia witnessed pressure due to a 20% spike in inflation of input costs and only part of these costs could be passed on as higher prices.

In terms of specifics, the company saw a you spike of 22% in the raw material costs at Rs1,818cr. Inventory costs were also higher by 40% yoy. Operating margins fell from 17.78% in Dec-20 quarter to 13.69% in the Dec-21 quarter. Operating margins marginally lower sequentially.

Net Profit after tax (PAT) for the Dec-21 quarter was down -18.56% yoy at Rs371.18cr on the back of the operating performance getting transmitted to the bottom line. The net profit growth got impacted as the other income was also sharply lower in the quarter.

Due to higher debt and lower profits, the interest service coverage and the debt service coverage had to take a hit on yoy basis.  PAT margins fell from 14.40% in the Dec-20 quarter to 10.38% in the Dec-21 quarter. The PAT margins were lower on a sequential basis by 27 bps.

Financial highlights for Dec-21 compared yoy and sequentially

	Britannia Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 3,574.98	₹ 3,165.61	12.93%	₹ 3,607.37	-0.90%
EBITDA (Rs cr)	₹ 489.34	₹ 562.94	-13.07%	₹ 508.17	-3.71%
Net Profit (Rs cr)	₹ 371.18	₹ 455.75	-18.56%	₹ 384.22	-3.39%
Diluted EPS (Rs)	₹ 15.41	₹ 18.92		₹ 15.95
EBITDA Margin	13.69%	17.78%		14.09%
Net Margins	10.38%	14.40%		10.65%