Britannia Industries net profit up around 12% in Q2

Mumbai, Nov 11 : Biscuit maker Britannia Industries on Saturday reported close to a 12 per cent increase in its consolidated net profit at Rs 261.03 crore during the quarter ended on September 30, 2017, as compared to Rs 234.05 crore in the year-ago period.

On a comparable basis, its consolidated revenue for the quarter stood at Rs 2,536.53 crore, up by 7.42 per cent from Rs 2,361.15 crore in the corresponding quarter of the last fiscal.

One of the country's leading food companies, it also reported that its profit from operations for the quarter grew by 11 per cent to Rs 344 crore. Sequentially, top-line, on a comparable basis, and net profit grew 14 per cent and 21 per cent respectively.

Commenting on the performance company's Managing Director Varun Berry said: "It has been a good quarter in the face of Goods and Services Tax (GST) transition. Trade channels have normalised post GST and we are witnessing improved consumer off-take. Mid single digit volume growths on the back of investment in brands and widening our distribution network through focus on direct reach, rural market and weak states."

He also said its international business grew in spite of pressure on account of deteriorating geopolitical situation and currency fluctuations in geographies like Middle East and Africa.

According to him, the prices of key raw material have been stable in the second quarter of the current fiscal. Its accelerated cost efficiency programme and endeavour to leverage fixed costs have helped the company to improve its profitability, he said.

The biscuit maker is setting up a large integrated food park at Ranjangaon in Maharashtra with an Rs 1,000 crore investment over the next three years to manufacture biscuits, cake, rusk and croissant.

"This is also an ideal site for setting up a dairy plant as it is located in the milk belt," the company said, adding that it is also setting up a greenfield plant in Guwahati in Assam to service the region.

The good company is building up a dedicated facility at Mundra in Gujarat for servicing export markets from India and operations in Nepal for local servicing, it added.