Britannia Industries Ltd. shares rose over 4% in early trade on Friday after management indicated demand momentum strengthened through the June quarter and is expected to improve further in the current quarter.
The stock climbed as much as 4.7% to Rs 5,655 before trimming gains. At around 9:30 a.m., it was trading near Rs 5,625, up about 4% from the previous close.
The positive sentiment comes after the management shared additional business updates with Nuvama Institutional Equities. According to the brokerage, Britannia delivered 9% volume growth during the quarter, ahead of its expectation of 5% to 6%. Management also said exit-month sales growth accelerated to 15% year-on-year, indicating demand improved as the quarter progressed.
Nuvama said it now expects growth to accelerate further in the September quarter, adding that "the worst is behind" for the company.
The rally comes a day after Britannia reported a healthy set of June quarter earnings. Consolidated net profit increased 13.4% year-on-year to Rs 591 crore, while revenue rose 8.2% to Rs 5,000 crore. EBITDA grew 11% to Rs 840.4 crore, with EBITDA margin improving to 16.8% from 16.4% a year earlier.
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