For the quarter, operating profit and PAT increased by 37.3% and 22.5% respectively.

Britannia Industries share price plunged 5.5 per cent to Rs 3,567.30 apiece on BSE, even as the company reported a 22.96 per cent increase in consolidated net profit to Rs 495.20 crore in the July-September quarter. The company had posted a net profit of Rs 402.73 crore in the corresponding quarter of the preceding year. Total revenue from operations climbed 12.15 per cent to Rs 3,419.11 crore during the same period as compared to Rs 3,048.44 crore in the year-ago period. Analysts at JM Financial said that June quarter’s 26 per cent growth has decelerated to 11 per cent in the September quarter. “We reckon exit growth rate is even lower vs the quarter’s average,” it said.

JM Financial expects the Britannia stock to remain under some pressure on the back of July-September quarter result. Post unlocking of the economy, the interim opportunities that were made available to packaged foods players have somewhat diminished, taking growth back to a more normal level, it said. It has pegged a target price of Rs 3,970, an upside of 5.2 per cent from the previous close.

Around 11.20 AM, Britannia Industries shares were trading 5.27 per cent down at Rs 3,578.70 apiece, as compared to a 0.54 per cent rise in S&P BSE Sensex. Britannia Industries’ total expenses were at Rs 2,822.02 crore, up 7.80 per cent from Rs 2,617.64 crore earlier. For the quarter, operating profit and PAT increased by 37.3% and 22.5% respectively. Jump in PAT was less than operating profit due to an increase in tax rate and finance cost compared to last year. Numbers missed street expectation on all fronts of revenue, operating profit and PAT. “While the Government is easing restrictions and the economy is on the path of recovery, we believe it will take some time for business to be back to normal,” said Keshav Lahoti, Associate Equity Analyst at Angel Broking Ltd.

Emkay Global Financial Services has given a ‘buy’ rating to the stock, with a potential upside of 19.3 per cent. It has set a 12-month target price at Rs 4,500, as it expects that Britannia still offers a healthy growth outlook, given its strong portfolio expansion and execution, along with improved demand trends in rural areas.


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