Britannia Industries share price rallied over 7 per cent to hit a fresh 52-week high of Rs 3,704.55 in Wednesday’s trade as the bread and biscuit maker reported 26 per cent rise in consolidated net profit for the March quarter at Rs 375 crores. The company had clocked a profit at Rs 297.23 crore in the corresponding period of the previous fiscal year. Britannia Industries has hit a 52-week high for the second consecutive session today, surpassing the previous high of Rs 3,479.55. Britannia Industries stock price has surged 76 per cent from its March low of Rs 2,100.55 per share.
At 10.20 AM, Britannia Industries was trading 5.66 per cent higher at Rs 3,645.65 apiece on the BSE as compared to a 1.15 per cent rise in the S&P BSE Sensex.”There was an impact on sales during late-March, growth for Apr-May just about exploded at 20% and 28% respectively. This is difficult to explain, though there are many theories one can think of: pantry up-stocking (then how did May continue to grow at such a high rate?), increased consumption since most people are at home (what about the shortfall in out-of-home / on-the-go consumption?), feeding migrant workers, etc.,” JM Financial said in its latest research report.
Revenue of Britannia Industries increased by 2.9 per cent to Rs 2,946 crore as compared to Rs 2,861 crore last year. However, it declined by 3.3 per cent sequentially. The company said that lockdown has impacted its growth revival. “After 9 months of moderate growth, we started to see growths coming back in the first 2 months of this quarter which was then hit by COVID-19 and lockdown in March impacting the revenue & net profit growths by an estimated 7-10%,” said Varun Berry, Managing Director, Britannia Industries. In April this year, the company had announced an interim dividend of Rs 35 per share for the previous financial year.
Eqwires Research Analyst
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