On a sequential basis, the net profit saw a decline of 3.2% over Rs 556.39 crore reported in Q3FY24. The revenue stood at Rs 4,126.70, down by 4.2% versus Rs 4,306.89 crore in Q3FY24.
For the year ended March 31, 2024, the consolidated revenue stood at Rs 16,546 crore up by 3.5% over the previous year and the operating profit stood at Rs 2,869 crore growing by 10.1%, which was 17.3% of the sales.
Following the Q4 results, global brokerage firm JPMorgan maintained a ‘Neutral’ rating on Britannia Industries with a target price of Rs 5,260. The Q4 numbers were in line with estimates, it said.
“The company delivered subdued revenue growth weighed down by pricing actions. However, the key positive was progressively improving market share,” the brokerage firm said.The global investment bank sees downside risk to its earnings estimates post the Q4 print.Meanwhile, Nuvama maintained its Hold rating on Britannia with a target price of Rs 5,395.Nuvama said, “Rural demand which has been a laggard for the FMCG industry is expected to revive in FY25 on the onset of a likely strong monsoon. We expect Britannia to be a beneficiary of this revival. Further, a good wheat crop output will aid margins.”
Commenting on the results Varun Berry, vice-chairman & managing director called the company’s performance as resilience and competitive in a tepid consumption scenario.
“Over the past 24 months, we have achieved a strong 19% growth in revenue, accompanied by a notable 43% increase in operating profit. Our market share rebounded as the year progressed as a result of strategic pricing actions to maintain competitiveness and intensified investments in brands, supported by distribution expansion,” Berry said.
The company expanded its distribution network, reaching approximately 27.9 lakh outlets directly and added around 2,000 rural distributors over the past year.
On cost and profitability fronts, Berry said the company would stay vigilant of the commodity prices and evolving geopolitical landscape.
“Our Cost Efficiency Program continues to yield operational savings of 2% of revenues, ensuring healthy operating margins,” the VC & MD said.
The company incurred expenses of Rs 3,388.28 crore in the reported quarter, which was up nearly 2% from Rs 3,322.48 crore reported in Q4FY23. On a sequential basis, it managed to trim its expenses by 4.4% over Rs 3,544.42 crore incurred in Q3FY24.
The company’s board has recommended a final dividend of Rs 73.5 per share for the financial year ended March 31, 2024.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)