Stocks

Britannia stocks fall over 5 per cent

Internet Desk | Updated on October 20, 2020 Published on October 20, 2020

Biscuit-maker Britannia Industries reported a 23 per cent jump in consolidated net profit to ₹495 crore for the quarter ending September 30. The net profit for the corresponding quarter last year stood at ₹403 crore.

Consolidated sales, during the quarter under review, saw an 11 per cent jump year-on-year to ₹3,354 crore (₹3,023 crore).

On a standalone basis, net profit and sales stood at ₹462 crore and ₹3,161 crore respectively.

On the cost front, Britannia said it “witnessed moderate inflation in price of key raw materials”. Accordingly, it expects prices to be stable going forward, “given the positive outlook on monsoon and harvest.”

“We sustained a large part of the efficiency gains that were witnessed in the previous quarter viz., supply chain efficiencies, reduction in wastages and fixed costs leverage. These measures helped us sequentially sustain the shape of our business and record a massive 390 bps increase in operating profit during the quarter versus last year,” Berry said in a statement.

Shares performance

Shares of the company touched an intraday low of ₹3,575 (-5.27%), to the weakest in nearly a month. It had fallen after two days of consecutive gain.

The stock is technically in a mildly bullish range. The trend has deteriorated from bullish on October 9 and has generated a negative return of 3.4 per cent since then.

At the current price, the stock has a dividend yield of 3.13 per cent.

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Published on October 20, 2020
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