The biscuit maker reported a 26% rise in profit at Rs 374.7 crore during the quarter ended March 31, 2020 against Rs 297.2 crore profit recorded in a year-ago period, helped by lower tax costs
Britannia share price touched all-time high of Rs 3,704.55 today, rising 7.37% on BSE, on the back of in-line March quarterly results and strong management commentary.
Britannia Industries clocked 21% growth in its consolidated net profit at Rs 1,402.63 crore for the full financial year ended March 31, 2020 against the net profit of Rs 1,159.12 crore in FY19.
Consolidated income of the company grew 5.48% to Rs 11,878.95 crore in FY20 as compared to Rs 11,261.12 crore in FY19.
Following the better than expected earnings, Britannia shares touched a all-time high of Rs 3,704.55 today, rising 7.37% against the last closing price of Rs 3,450 on BSE.
Britannia Industries is trading higher than 5, 20, 50, 100 and 200-day moving averages. The stock has gained 15.04% returns in the last 6 days of consecutive gains. The stock has hit a 52-week high for the second straight session today, surpassing the earlier 52 week high of Rs 3,479.55.
Britannia stock price has gained 13% in one week, 14.84% in one month and 20.6% year to date. Market capitalisation of the firm stands at Rs 87,400.61 crore.
The biscuit maker reported a 26% rise in profit at Rs 374.7 crore during the quarter ended March 31, 2020 against Rs 297.2 crore profit recorded in a year-ago period, helped by lower tax costs.
Total income rose 2.5% (YoY) to Rs 2,867.7 crore in the January-March quarter of the current fiscal as compared to Rs 2,799 crore in a year-ago period.
Commenting on the performance, Varun Berry, Managing Director, Britannia, said, “After 9 months of moderate growth, we started to see growths coming back in the first two months of this quarter which was then hit by COVID-19 and lockdown in March, impacting the revenue and net profit growths by an estimated 7-10 per cent.”
“In this period, we continued to garner market share through our focus on the building blocks of distribution, diligence in marketplace and brand-building through focussed product campaigns,” Berry added.
During the coronavirus-led nationwide lockdown, Britannia Industries saw revenue growth of 20 per cent in April and 28 per cent in May, versus the corresponding months in the previous year.
“We are diligently studying the impact of COVID 19 on short-term and long-term changes in consumer preferences to adapt the learnings in our strategy going forward,” the company said.
Source: Business Today