Profit before tax (PBT) increased by 9.5% year on year (YoY) to Rs 681.10 crore in June 2024 quarter.

Meanwhile, the company’s board has approved sourcing of renewable energy for its Ranjangaon factory, Maharashtra and consequent investment of Rs 4.3 crore equivalent to 26% stake in the equity share capital of special purpose vehicles of Amplus Energy Solutions, subject to due diligence by the company.

Varun Berry, vice chairman & managing director, said, “We come out of a challenging financial year that witnessed consumption slowdown, particularly in Rural India. Our performance this quarter reflects the agile approach to a dynamic market environment and diligent market practices. We delivered a modest revenue growth of 4% during the quarter, driven by high single-digit volume growth, and improved operating margins over last year. Our market share progressed well as an outcome of sustained investments in brands, product excellence, and innovation.

We continue to make positive strides in rural as we expand distribution footprint and enhance product offerings to align with regional preferences, and well positioned to benefit from the consumption growth in Rural. As a result, rural market share grew at a faster clip than urban. We are actively leveraging the rapidly growing modern trade and e-commerce channels, both growing handsomely compared to previous year. Additionally, we introduced the Pure Magic Stars and Golmaal variant during the quarter, which have contributed to heightened consumer excitement and strengthened our brand franchisee.

On Cost & Profitability front, we remain vigilant of the commodity price fluctuations & evolving geopolitical landscape. Our Cost Efficiency Program continues to yield operational savings, ensuring robust operating margins. We are committed to investing in capability enhancement and brand development while maintaining price competitiveness with the clear objective of driving market share and sustaining profits.”

Britannia Industries (BIL) is one of India's leading FMCG companies. The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.

The scrip shed 0.10% to close at Rs 5,723.15 on Friday, 2 August 2024.