Business Daily from THE HINDU group of publications
Thursday, Oct 25, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Thursday, Oct 25, 2007 ePaper | Mobile/PDA Version |
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Stocks Corporate - Performance Columns - Microscope Healthy numbers from Britannia
BL Research Bureau Strong sales growth, savings in excise duty and more benign trends in raw material prices have helped Britannia Industries report exceptionally strong numbers among the FMCG players for the latest quarter. Net sales have sustained their high growth trajectory, expanding by 19.8 per cent in the second quarter of this fiscal. Net profit growth has been at an impressive 128 per cent. The effect of the healthy topline growth on profits has been magnified by savings in excise duty (compared to last year) and an expanding operating profit margin. The company appears to have managed savings in raw material costs on the back of moderation in prices of inputs such as sugar and milk in this particular period. Though there is a one-off component to profit growth as a result of the excise duty cut and higher “other income”, the numbers indicate that Britannia’s biscuits and bakery business continue to sustain robust growth despite competitive onslaught from ITC. While the performance may deliver a boost to Britannia’s stock price, the likely exit of Groupe Danone from the company and the terms on which this exit is negotiated, will also be a crucial determinant of stock price trends over the next few months. More Stories on : Stocks | Performance | Microscope | Dairy & Dairy Products
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