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Britannia Industries on Monday reported a standalone net profit of over Rs 86 crore for the quarter ending June 2013; a 99 per cent increase on the Rs 44 crore it reported in the corresponding quarter last fiscal. Turnover during the period stood at Rs 1,416 crore.
Amongst the expenses, the company reported a substantial increase in advertisement costs. Costs rose to Rs 127 crore this quarter as compared to Rs 99 crore in June 2012.
Sequentially, however (between March 2013 and June 2013), sales and net profit both witnessed a marginal drop.
According to Guarang Kakkad, Vice-President-Institutional Research, Religare Capital Markets Ltd, the increase in net profit was aided by “lower interest expense and higher other income”. It was partially offset by higher tax rate, he added.
Consolidated
On a consolidated basis, Britannia, during the period, reported a 93 per cent increase in net to nearly Rs 90 crore and a 14 per cent increase in turnover to Rs 1,540 crore.
Operating margins improved to 7.7 per cent in comparison to the 4.5 per cent it reported during the corresponding period last fiscal.
"The expansion in margin is consequent to an improvement in product mix and higher price realisation coupled with an emphasis on cost management,” Vinita Bali, MD, Britannia was quoted as saying in a company release.
The Wadia Group-controlled Britannia Industries expects its biscuit manufacturing unit in Gujarat to be on stream in another two to three months.
“The Gujarat unit is expected to be on stream next quarter. It will entail an investment commensurate to similar plants, which is in the range of Rs 40-50 crore,” said Britannia Industries Managing Director Vinita Bali, addressing reporters here.
The company, she added, would focus on improving its product portfolio in the bakery and dairy divisions. Biscuits, cakes, rusk and bread make up the bakery division. Dairy includes milk, butter, yogurt and allied products.
Britannia, according to Bali, was also planning to sell its unit in Chennai, which has been shut since 2008-09. Plans are also afoot to move from its “luxurious” corporate office, Britannia Gardens, in Bangalore, to a new one within the city. The shift is likely to take place early next year.
The Britannia stock closed trading at Rs 732, an increase of almost 5.43 per cent, at the BSE.
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