Britannia Industries reported a 23.23 per cent increase in consolidated net profit for the quarter ended September 30, 2020. The company posted consolidated net profit of Rs 498.13 crore during the quarter under review as opposed to Rs 404.22 crore in the year-ago period.
Sales of goods increased by 10.96 per cent as government began lifting restrictions on economic activities. Revenue from operations rose to 3,354.35 crore during the September quarter of the current fiscal, as opposed to Rs 3,022.91 crore in the corresponding quarter last year. Total revenue increased to Rs 3,419.11 crore during Q2 FY21, 12.14 per cent higher than Rs 3,048.84 crore in Q2 FY20.
Total expenses increased 7.8 per cent to Rs 2,822.02 crore during the September quarter of fiscal 2021, from Rs 2,617.64 crore in the same period during fiscal 2,617.64 crore. Tax expenses soared 83.2 per cent to Rs 174.98 crore during the period under review, as opposed to Rs 95.51 crore in the year-ago period, hurting profitability.
Commenting on the quarterly performance, Varun Berry, Managing Director of Britannia Industries, said that the company is focussing on a business that combines sustainability and profitability. As for impact of COVID-19 and the process of unlocking, Berry said that while the government has ended the lockdown, it appears that it will take a while for the situation to normalise.
"In this quarter, we got our full range of products to the market, focussed on efficiency in distribution, followed continuous replenishment system of distribution, improved the health of our distributors and inched closer to normalcy in advertisement and promotions. The nimble culture and the hard work put in by the team helped deliver a resilient performance in these challenging times. All the adjacent businesses too delivered a healthy profitable growth," Berry said.
"On the cost front, we witnessed moderate inflation in the prices of key raw materials and expect the prices to be stable going forward given the positive outlook on monsoon and harvest. We sustained a large part of the efficiency gains that we 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," he further added.
The Britannia MD said that the company is keeping a close watch on macro-economic factors, changes in laws, and evolving consumer behaviour, framing medium-term strategy accordingly.