Demonetisation effect: Britannia Industries posts 6% rise in Q4FY17 net profit
Britannia Industries posted nearly 6% rise in consolidated net profit for the fourth quarter ended March 31, 2017 period. The company registered net profit of Rs 210.91 crore, rising by 5.96% compared to Rs 199.03 crore in the corresponding period of the previous year.
However, Q4FY17 dropped by 4.32% from Rs 220.44 crore of the preceding quarter.
Varun Berry, Managing Director of Britannia Industries said, “It has been a good quarter in the face of challenging market environment and sluggish demand scenario post demonetisation. We expect the situation to slowly improve over the next 3 to 6 months with the measures announced by the government in the budget and the prediction of an above average monsoon this year.”
Consolidated total income stood at Rs 2,349.63 crore, which increased by 5.59% year-on-year (YoY) but was sequentially down by 1.79% quarter-on-quarter (QoQ).
Berry said, "Growth in international business continued to be under pressure due to deteriorating geopolitical situation and currency fluctuations like Middle East and Africa."
"Also growth in dairy business was subdued primarily due to focus on driving products with high profitability and reducing play in less customized products, " added Berry.
Prices of key raw material also remain high with inflation in Q4 standing in excess of 10%.
On its agreement with Chipita of Greece for manufacturing and selling long life filled croissants, Berry said the project is expected to be commercialized by July 2018.
On standalone-front, Britannia reported just 2.53% yoy rise in net profit at Rs 196.73 crore in Q4, while total income also grew by 6.98% yoy at Rs 2,193.63 crore.
Lastly Berry added, “We are also actively working on bridging our portfolio gaps and I am pleased to announce the launch of 'Goodday Wonderfulls' – a highly delilghtful premium cookie. Our innovation drive will continue with a spate of new and innovative products to be launched in 2017-18.”