Shares of FMCG company Britannia fell over 6% intraday on BSE even after the firm registered 23% growth in its net profit for the quarter ended September 2020.
Britannia Industries clocked 23.2% year-on-year growth in its consolidated profit at Rs 498.13 crore for the July-September quarter as against Rs 402.3 crore profit in the year-ago period. Consolidated income of the company grew 12% to Rs 3,419.11 crore in the September quarter as against Rs 3,048.44 crore in the year-ago period. Total expenses were at Rs 2,822.02 crore, up 7.80% YoY.
Following Q2 earnings, Britannia share price fell as much as 6.33% to hit an intraday low of Rs 3,535 today, as against the last closing price of Rs 3,773.80 on BSE. The stock opened lower at Rs 3,689 on the BSE.
Britannia Industries is trading higher than 200-day moving averages but lower than 5, 20, 50 and 100-day moving averages. The stock has fallen 5% in the last one week and 6.47% in one month's period.
The market capitalisation of the firm stands at Rs 85,493 crore.
The company's Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 37.2% to Rs 675.39 crore YoY. Its EBITDA margin expanded by 361 bps YoY to 19.75% in Q2FY21.
Commenting on the performance, Varun Berry, Managing Director, Britannia, said, "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 advertising & promotions. The nimble culture & 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."
"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 increase in operating profit during the quarter versus last year," Berry added.