Britannia enters Rs 1 lakh crore m-cap club after stock zooms 10%

7 Nov 2022 , 01:41 PM

In intraday trading on Monday, Britannia Industries’ shares soared % to an all-time high of Rs4,181.40 after the business reported strong revenue growth and a 15-year high in market share for the third quarter (Q2FY23).

The biggest food company’s stock broke the previous record high of Rs4,152.05 set on September 14, 2021. Britannia’s entry into the Rs1 trillion market capitalization (m-cap) club was made possible by a substantial increase in the stock price. The company’s market capitalization today reached Rs1.01 trillion in the intraday session.

With the help of a mid-single digit volume rise, Britannia’s consolidated sales in Q2FY23 increased by 22% year over year (YoY) and by 19% quarter over quarter (QoQ) to Rs4,338 crore. At R 660 crore, the operating profit increased 30% YoY. To reach 38.9%, the consolidated gross margin increased by 200bp and 140bp quarter over quarter. However, the increase in the EBITDA margin from 16.3% to 80bp was constrained by higher other expenses (up 120bp YoY) and decreased staff costs (down 50bp YoY).

In terms of costs and profitability, commodity inflation persisted due to growing prices for milk and flour goods, according to Britannia. The company claimed it had improved its operating margins above pre-covid levels in this volatile environment due to its price adjustments and enhanced cost-efficiency initiative. The business said that over the past three months, there had been positive growth momentum.

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