Britannia Q2 net profit down 46% at Rs 31.87 cr

NEW DELHI: Confectionery-maker Britannia Industries on Wednesday posted a 46 per cent decline in net profit to Rs 31.87 crore for the September quarter, mainly on account of higher expenses.

The company had reported a profit of Rs 59.07 crore in the same period a year ago.

For the second quarter ended September 30, 2010, the firm achieved net sales of Rs 1,094.77 crore.

"In an intensely competitive market, we continue to accelerate volume and revenue growth ahead of total industry growth. Unprecedented and unabated inflation in commodities has adversely impacted industry margins and our focus is on driving cost effectiveness, operational efficiencies and better sales mix for margin improvement," Britannia Industries Managing Director Vinita Bali said in a statement.

The company's expenses stood at Rs 1,052.22 crore in the September quarter, as against Rs 794.08 crore in the year-ago period.

"Our innovation pace has also increased with several new launches to tap new opportunity segments," Bali said.

Britannia has introduced three new variants of its baked snack, 'Timepass', besides other new products.