Britannia surges over 14% on strong Q4 results

MUMBAI: Shares of Britannia surged higher in early trade after the company reported strong results last Friday. The company’s net profit increased to Rs 87.8 crore, 65.55 per cent, as compared to a net profit of Rs 53.03 crore in the corresponding quarter last fiscal.

At 09:30 a.m.; the stock was at Rs 659.40, up 14.79 per cent, on the BSE. It touched a high of Rs 664.65 and a low of Rs 617 in trade today.

The total income grew to Rs 1,523.52 crore, up 14.36 per cent, as compared to Rs 1.332.12 crore in the year-ago period.

“For 4QFY2013 Britannia Industries posted a 13.5 per cent y-o-y growth in net sales to Rs 1,486 crore, which was in-line with estimates. The top-line growth was both on account of higher volumes and better realizations. Operating profit margin rose by 260bp y-o-y to 7.8 per cent,” said Angel Broking note.

Its operating profit margin grew quite strongly by 270 basis points to 7.8 percent as against 6.1 percent year-on-year.

Britannia recommended a dividend of Rs 8.50 per share for the year ended March 31, 2013.

According to Vinita Bali, MD, Britannia Industries, the company’s topline growth was driven by 3 per cent volume growth & pricing. Margins improved due to stable input costs

Britannia’s bakery & dairy business are growing at 14-16 per cent currently and the company will continue to invest in health business segment, she said.