Britannia Industries share price falls over 3% despite rise in Q3 net profit
BusinessToday.In February 10, 2020
Share price of Britannia Industries fell in trade today despite the FMCG firm reporting a 23.26 per cent rise in consolidated net profit in third quarter of this fiscal.However, revenue growth trajectory saw a significant decline in last quarter which dampened market sentiment.
Total revenue from operations rose 4.93 per cent YoY to Rs 2,982.68 crore as against Rs 2,842.44 crore in the year-ago period. Earlier, the figure grew by over 10 per cent YoY in Q3FY19.
The large cap stock fell up to 3.89% to Rs 3,125.7 on BSE today.
The stock has lost 1.58% during last one year and 4.33% since the beginning of this year.
Share price of Britannia Industries has lost over 3% in last three sessions.
The firm reported a profit of Rs 369.88 crore in the third quarter of this fiscal against consolidated net profit of Rs 300.07 crore in the same quarter last fiscal.
Management of the FMCG major highlighted that it witnessed moderate inflation in the prices of key raw material for the bakery business. However, the inordinate increase in milk prices adversely impacted the profitability of the dairy business.
Commenting on the company's performance, Britannia Industries Managing Director Varun Berry said, "We had a decent quarter in the face of an economic slowdown...We chose to focus on strengthening the building block of the business rather than pushing sales in the face of a low offtake scenario."
The firm continued to expand the width and depth of distribution but additionally focused on improving distributor health and keeping the supply chain efficient, Berry said.
"During this phase of sluggish demand, we continued to invest in enhancing our brand equity through focused product campaigns. As a result of our efforts, we continue to strengthen our position as a dominant market leader," Berry added.
On the cost front, he said there was moderate inflation in the price of raw materials for the bakey business.