Q1FY19 Result: Britannia Industries PAT grows 19.4 per cent

Britannia Industries, India's leading food company, reported its results for the quarter ended June 30, 2018 on Monday. The company’s consolidated revenue for the quarter came in at Rs. 2,543.83 crore, registering 8.7 per cent yoy increase.

EBITDA for the quarter rose by 18.5 per cent yoy to Rs. 389.37 crore with a corresponding margin expansion of 127 bps. EBITDA margin for the quarter stood at 15.3 per cent. The PAT for the quarter came in at Rs. 258.08 crore, yoy increase of 19.4 per cent.

The jump in volume was primarily due to the investment in brands and widening the distribution network through focus on direct reach, rural market and weak states. The company’s International business remained flat due to slowdown in geographies like Middle East and Africa.

During the quarter, the company has commissioned a new greenfield factory at SEZ in Mundra dedicated for servicing export markets. In addition, it is also setting up a greenfield plant at Nepal which will be its fourth country with local manufacturing.

The growth in Dairy business has been subdued due to focus on driving value-added products and reducing play in the less profitable commoditised products, which has helped to improve profitability.

On the commodity front, prices of key raw material have been stable in Q1FY19. The cost efficiency program and endeavour to leverage fixed costs have helped to improve profitability.

The company will consider the sub-division of equity shares of the face value of Rs 2 each on August 23.

On Monday, the stock opened at Rs. 6,499 per share and made an intraday low of Rs. 6,273.80, on the BSE. At 11:40, the stock recovered and was trading around at Rs. 6,445.35, on the BSE.