Britannia Industries Ltd announced a 40 percent decline in its consolidated net profit for the quarter ending December 31, 2023, registering at Rs 556 crore compared to Rs 932 crore in the corresponding period last year. The results slightly fell short of Street estimates, which anticipated a net profit of Rs 566 crore based on a poll of six brokerages.
Sequentially, the company’s profit also slipped by 5 percent from Rs 587 crore in the previous quarter.
This subdued growth in Q3 FY24 is attributed to several factors including a high base effect, price reductions, intense competition, and low single-digit volume growth.
Despite these challenges, Britannia’s revenue from operations saw a marginal increase to Rs 4,256 crore from Rs 4,196 crore in the same quarter last fiscal. Analysts had predicted a 3 percent year-on-year revenue growth at Rs 4,303 crore for the quarter.
The company, known for brands like Jim Jam and NutriChoice biscuits, reported a 2 percent decline in consolidated profit before exceptional items and tax, amounting to Rs 761 crore for the third quarter compared to Rs 774 crore in the previous year.
Notably, Britannia had recorded a one-off gain of Rs 376 crore from a stake sale in the year-ago quarter.
In response to market dynamics, Britannia had previously announced price reductions on certain products, responding to competitors’ strategies leveraging declining raw material expenses to lower prices and attract more consumers.
Shares of Britannia closed 2.24 percent lower at Rs 5,006.20 apiece on the Bombay Stock Exchange (BSE) on February 6, ahead of the earnings announcement.
