Britannia Industries’ Sales, Profits Rise In Q4FY13

In its Q4FY13 performance, Britannia Industries has been able to beat the street’s expectations. During the quarter, the company’s standalone net profit increased by 65.7% on a YoY basis to Rs 87.8 crore. The higher numbers can be attributed to its improved operational performance despite an increase in the tax expenses.

Brittania’s topline growth was in line with the expectations, with its total income rising 13.65% to Rs 1,502.4 crore in January-March quarter for FY13 from Rs 1,322 crore in the year ago period. The EBITDA of the company jumped by 45% on a YoY basis to stand at Rs 116 crore.

Its Operating Profit Margin (OPM) for Q4FY13 grew quite strongly by 270 basis points to 8.8% from 6.1% on year-on-year basis. This sharp improvement can be accredited to the decline in raw material costs. The raw material costs as a percentage of sales stood at 43.15%, marking a decline of 641 basis points on a YoY basis.

Britannia recommended a dividend of Rs 8.50 per share for the year ended March 31, 2013, taking the dividend yield for investors to 1.27%. The markets have welcomed the results, as the price of the scrip are up by more than 16% so far in trades today.