Britannia Q3 results: Net profit falls 40% to Rs 556 cr on soft rural demand
Total revenue from operations rose just over 1% to Rs 4,256 crore
- Feb 6, 2024,
- Updated Feb 6, 2024 9:12 PM IST
Biscuit maker Britannia Industries Ltd reported 40% fall in third-quarter profit on Tuesday, hurt by subdued rural demand and elevated competition from smaller packaged food makers.
Britannia, which sells Jim Jam and NutriChoice biscuits, reported consolidated net profit of Rs 556 crore for the third quarter ended December 31, compared with Rs 932 crore a year earlier.
The company recorded a one-off gain of Rs 376 crore from a stake sale in the year-ago quarter.
The weak earnings come in the face of intense price competition. The company has previously mentioned reducing certain product prices after competitors took advantage of declining raw material expenses to lower prices and attract more consumers.
Rural spending on treats and snacks has also been constrained by the high cost of living.
Total revenue from operations rose just over 1% to Rs 4,256 crore.
The Good Day biscuit maker's shares climbed 18% last quarter, outperforming a 11% increase in Nifty 50 index.
On Tuesday, Britannia's scrip on BSE closed trading 2% lower at Rs 5,006.2.
With inputs from Reuters
Biscuit maker Britannia Industries Ltd reported 40% fall in third-quarter profit on Tuesday, hurt by subdued rural demand and elevated competition from smaller packaged food makers.
Britannia, which sells Jim Jam and NutriChoice biscuits, reported consolidated net profit of Rs 556 crore for the third quarter ended December 31, compared with Rs 932 crore a year earlier.
The company recorded a one-off gain of Rs 376 crore from a stake sale in the year-ago quarter.
The weak earnings come in the face of intense price competition. The company has previously mentioned reducing certain product prices after competitors took advantage of declining raw material expenses to lower prices and attract more consumers.
Rural spending on treats and snacks has also been constrained by the high cost of living.
Total revenue from operations rose just over 1% to Rs 4,256 crore.
The Good Day biscuit maker's shares climbed 18% last quarter, outperforming a 11% increase in Nifty 50 index.
On Tuesday, Britannia's scrip on BSE closed trading 2% lower at Rs 5,006.2.
With inputs from Reuters