Bengaluru-based Britannia Industries Ltd. reported a 6.5 percent gain in sales for the April-June quarter, higher than analyst estimates.
The country's second-largest biscuit maker posted a net profit of Rs 216 crore, compared with the Rs 217 crore consensus estimate of analysts tracked by Bloomberg.
It clocked net sales of Rs 2,340 crore for the three-month period, versus Rs 2,197 crore same period a year ago, according to its stock exchange filing. Analysts had pegged revenue to come in at Rs 2,185 crore.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 3.8 percent to Rs 329 crore, while operating margin remained largely flat at 14.5 percent.
The company said its international business continues to deteriorate due to unfavourable geopolitical situation and currency fluctuations in geographies such as the Middle East and Africa.
Growth in dairy business was also subdued primarily due to focus on driving products with high profitability and “reducing play” in the less profitable products, the company said in its release.
Our accelerated cost efficiency program and endeavour to leverage fixed costs have helped us improve our profitability on a sequential basis.Varun Berry, Managing Director, Britannia Industries
Britannia's shares touched a fresh record high after the results were announced. The stock rose as high as 7.6 percent to Rs 4,214.50, the highest value since at least January 1991.
Also Read: Britannia's Fight With Kerala Dealers Escalates
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