Britannia Industries' net profit rise by 13%; shares up over 5%
After the announcement of the results, the shares of the company surged over 5%.
FMCG major in India, Britannia Industries on Monday announced financial results for the quarter ended on June 30, 2016. The company posted a consolidated net profit after tax, minority interest and share of profit of associates of Rs. 219.1 crore for the quarter ended June 30, 2016, a rise of 13.15% as compared to Rs. 193.6 crore for the quarter ended June 30, 2015.
On Standalone basis, the company reported a net profit of Rs 210.3 crore in Q1FY17, rise of 23.19% as compared to Rs 170.7 crore during the same period last year.
After the announcement of the results, the shares of the company surged over 5%. At 1126 hours the shares of Britannia were trading at Rs 3038 per piece, up 5.43% on BSE.
The total income increased from Rs 1879.4 crore in the quarter ended on June 30, 2015 to Rs 2078.3 crore in June 30,2016.
Commenting on the performance, Varun Berry, Managing Director of Britannia Industries, said, "We continue to outpace the market with our go to market strategy of creating a robust distribution network with unrelenting focus on rural and our weak states. The category growths remained subdued during the quarter, however I am hopeful that a good monsoon and impact of 7th pay commission would aid consumption and boost demand going forward".
The company posted consolidated revenue growth of Rs 2162 crore, rise of 8%, as against Rs 1997.80 crore during the same period last year.
The deteriorating geopolitical situation and currency fluctuations in certain geographies like Middle East and Africa have also impacted our growths. We intend to drive consumer off take & strengthen our momentum through re-stage of our brands and plugging our product portfolio gaps going forward. With a strengthened back end in terms of technologically superior factories and state of the art R&D centre, we are confident of detivering new to market & organolepticalty superior products for our consumers as we progress on our journey", Berry added.