Britannia net profit surges 51 per cent: stock up 2 per cent

Mayuresh Deshmukh / 10 Feb 2016

Britannia net profit surges 51 per cent: stock up 2 per cent

It reported a 51 per cent rise in net profit to Rs 208 crores for the quarter on account of a phasing out of excise duty benefits. The scrip surged as much as 2 per cent on Wednesday in early morning trade.

  

India’s leading food company Britannia Industries (BIL) announced its nine month ending quarterly results on Tuesday. It reported a 51 per cent rise in net profit to Rs 208 crores for the quarter on account of a phasing out of excise duty benefits.

On financial front, the net revenue from operations of BIL reached to Rs 2240 in Q3FY16 compared to Rs 2033 crores in Q3FY15, an increase of 10.18 per cent year on year (YoY). The EBITDA stands at Rs 322 crores this quarter compared to Rs 220 crores in Q3FY15, an increase of 46.65 per cent YoY. The EBITDA margin of company stands at 14.37 per cent this quarter compared to 10.80 per cent in Q3FY15. The net profit stands at Rs 208 crores in Q3FY16 compared to Rs 137 crores in Q3FY15, an increase of 51.22 per cent YoY. The growth in this quarter was impacted by 100 basis points (bps) due to phasing out of Excise duty incentives available to company. 

The nine month ending net revenue from operations increased by 11.59 per cent and reached to Rs 6467 crores compared to Rs 5795 crores for the same period last year. The net profit for nine month period stands at Rs 616 crores compared to Rs 521 crores for the same period last year, an increase of 18.23 per cent YoY. 

The company’s strategy to focus on execution and commercialization of potential consumption opportunities helped in delivering double digit revenue growth. The company has accelerated; and the premiumization drive will help them to gain long term consumer loyalty, affinity and demand.  The company’s initiative in building future ready capability along with tight control on all elements of cost shall help them in delivering profitable revenue growth for company going forward. 

On valuation front the trailing twelve month (TTM) P/E of BIL is 53.45 as compared to industry P/E of 44.63. Reacting to the good numbers, the scrip surged as much as 2 per cent on Wednesday in early morning trade and now  is trading at Rs 2817.20, an increase of 1.42 per cent from previous close.

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