Britannia Industries' net profit in March quarter down y-o-y by 3.6%

6 May 2024 , 09:29 AM

Britannia Industries, a FMCG giant, recorded a consolidated net profit of ₹538.28 Crore for the quarter ending March 31, 2024, a 3.6% decrease from the previous year’s figure of ₹558.66 Crore for the corresponding quarter. The PAT was in line with expectations of ₹537 Crore.

The company’s board has recommended a final dividend of ₹73.5 per share for the fiscal year ending March 31, 2024.

Meanwhile, revenues were somewhat below than Street projections of ₹4,130 Crore.

On a sequential basis, the net profit fell 3.2% from ₹556.39 Crore reported in Q3FY24. The revenue stood at ₹4,126.70 Crore, down 4.2% from ₹4,306.89 Crore in Q3FY24.

For the fiscal year ending March 31, 2024, the consolidated revenue was ₹16,546 Crore, up 3.5% from the previous year, and the operating profit was ₹2,869 Crore, up 10.1%, or 17.3% of sales.

Varun Berry, vice-chairman & managing director, described the company’s performance as resilient and competitive despite sluggish consumption trends. He highlighted a robust 19% growth in revenue over the last two years, along with a significant 43% rise in operating profit. Berry attributed the rebound in market share to strategic pricing measures aimed at sustaining competitiveness and increased investments in brands, backed by expanded distribution channels throughout the year.

Over the last year, the company increased its distribution network by directly accessing around 27.9 lakh shops and adding around 2,000 rural distributors.

The company’s expenses in the reporting quarter totaled ₹3,388.28 Crore, up approximately 2% from ₹3,322.48 Crore in Q4FY23. On a sequential basis, it managed to reduce its expenses by 4.4% over ₹3,544.42 Crore incurred in Q3FY24.

At around 9.25 AM, Britannia Industries was trading 3.36% higher at ₹4,903.85 per piece, against the previous close of ₹4,744.60 on NSE.

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