Britannia Industries, dairy and bakery products maker company, announced its second quarterly result on Monday, November 7. The firm reported a 5.79 percent increase in profit at Rs 233.95 crore during the second quarter that ended on September 30.
During the same quarter in the last fiscal, Britannia had posted a net profit of Rs 221.13 crore, the company said in a regulatory filing with the Bombay Stock Exchange. Following the results, the Britannia stock was trading at Rs 3,245 at around 9.34 am on Tuesday, November 8, down 1.76 percent from its previous close on the BSE.
During the July-September quarter, its revenues grew 10.3 percent to Rs 2,456 crore as against Rs 2,204 crore during the corresponding quarter in the previous financial year. Sale of biscuits contributes 80 percent of the company's revenues.
"Our double-digit growth for the quarter backed by a double-digit volume growth in our base business," Britannia managing director Varun Berry said in a statement.
Over the next few quarters, the company is hoping to generate additional revenues owing to the monsoon and the seventh pay commission.
"We have witnessed a positive momentum in the market growth over the last few months and I believe that the impact of good monsoon and flow of 7th pay commission benefits would continue to support this trend," Berry said.
"Our go to market strategy which entails widening our distribution network through the focus on direct reach, rural market and weak states, has helped us outpace the market," he added.
Britannia's net sales during the first half of the current fiscal were up 10.31 percent at Rs 4,652.72 crore when compared to Rs 4,217.55 crore during the same quarter in the last financial year.
Britannia generates revenues worth Rs 6,000 crore. It also delivers products in five categories across 3.5 million retail outlets across the country.