Britannia Inds soars after Q2 PAT rises 28% YoY

7 Nov 2022 , 10:39 AM

Profit from operations stood at Rs 660 crore, growing at 30% for the quarter. Britannias market share reached a new 15-year high. On a consolidated basis, profit before tax in Q2 FY23 stood at Rs 659.2 crore, up 26.08% from Rs 522.84 crore in Q2 FY22. During the quarter, total expenses rose 20% YoY to Rs 3719.57 crore. Cost of materials consumed rose 17.3% and employee expenses climbed 5.8%. Finance cost increased 39% YoY to Rs 54.14 crore in Q2 FY23. Under non&8208;current liabilities, the companys borrowings stood at Rs 1,709.77 crore as on 30 September 2022, higher than Rs 706.99 crore as on 31 March 2022. In the six months ended 30 September 2022, the company raised Rs 1010 crore as long term debt. It repaid non&8208;convertible bonus debentures of Rs 721 crore through cash flow from financing activities (CFO). The listed 3&8208;year non&8208;convertible bonus debentures of &8377; 720.95 crores having a coupon rate of 8% p.a. (payable annually), was repaid along with interest on 26th August 2022, as per the terms of the issue of the bonus debentures, the company said. It paid Rs 1,362.26 crore for dividends (including bonus debentures) as on 30 September 2022. Net cash generated from operating activities stood at Rs 731.43 crore in six months ended 30 September 2022 as against Rs 492.37 crore in six months ended 30 September 2021. Varun Berry, managing director, said: We have witnessed positive growth momentum over the last few months. Our Go-to-market strategy & increase in distribution reach have converged to deliver a robust topline growth of 22% YoY & 19% QoQ, aided by a mid-single digit volume growth, as we record our highest quarterly revenue. We continue to have aggressive market share gains, consistently over the past 38 quarters & registers a 15-year high, which is a testimony of our Brand strength & teams execution capability. Our direct distribution jumped to 26 lakhs outlets, with an addition of 4 lakhs outlets in the last 6 months. We continue to make strides in our Rural journey and we now have appointed ~28,000 Rural Preferred Dealers, which has led to consistent market share gains. We supported our strong brands with the requisite media investments in the digital & mass media space. It was a quarter of consolidation where we supported our newly launched products eg. Treat Croissant, NC Seeds & Herbs, Biscafe, Potazos, 50-50 Golmaal, Marble cake & Rs 5 Muffils across geographies & channels. Some of our new launches have done extremely well & continue to grow aggressively quarter on quarter. On cost & profitability front, commodity inflation remained on the boil on the back of rising inflation in Flour & Milk products. In this dynamic environment, as a result of our pricing actions and intensified cost efficiency program, we have been able to improve our operating margins beyond pre-covid levels. Britannia Industries is one of Indias leading food companies. It manufactures Indias favorite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold. Britannias product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt. Powered by Capital Market – Live News