Home >Companies >Company-results >Britannia profit rises 92% to `89.5 crore

Bangalore: Britannia Industries Ltd, the maker of Good Day and Tiger biscuits, reported a 92% increase in net profit to 89.5 crore for the June quarter, helped by a fall in costs of materials such as sugar and wheat.

Total income rose 15% to 1,565.8 crore for the quarter ended June.

The results announcement is the first after organizational changes were made in May when Vinita Bali, Britannia’s CEO of eight years, moved on to the new role of overseeing global operations while Varun Berry was named head of Indian operations which account for the bulk of Britannia’s revenue.

“The expansion in margin is consequent to an improvement in product mix and higher price realization coupled with an emphasis on cost management—the growth momentum we saw in the second half of last year continued," managing director Bali said in a statement.

Operating margins rose significantly to 7.7% from 4.7% in the year-ago period.

“These are very strong results. Clearly cost control initiatives like using alternative fuels, freight consolidation, etc., that they have been working on are starting to show results," said Bhaveshkumar Jain, analyst at Sushil Finance.

“They’ve also been moving more manufacturing in-house and that has also helped them control costs. And the revenue growth at over 14% suggests a healthy product mix and higher price realization as volume growth has been quite muted for FMCG (fast-moving consumer goods) companies."

In July, Ness Wadia, son of Britannia’s chairman Nusli Wadia, was nominated to the company’s investment, innovation, and audit committees.

The Wadia family owns around 51% of the Bangalore-based Britannia.

In July, the company also said that it would thenceforth use the line “A Wadia Enterprise" under its name.

Shares of Britannia Industries ended 5.43% higher at 732 apiece on BSE on Monday, after rising 8.2% to 751.05 apiece in early afternoon trade.

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