Britannia Industries’ Q3 Profit Rises 4.8% YoY; Stock Gains Amid Strong Market Performance

Britannia Industries reported a 4.8% YoY rise in Q3 FY25 net profit to ₹582.3 crore, driven by higher sales and strategic price adjustments. The company expanded its distribution network while managing rising input costs through operational efficiencies. Following the earnings report, Britannia’s stock gained over 2%, with brokerages offering mixed ratings.

CONTENTS:

• Britannia Industries Reports 4.8% YoY Net Profit Growth in Q3 FY25
• Britannia Industries Shares Rise Following Q3 Earnings; Brokerages Weigh In
• Indian Stock Market Recap: Key Indices, Corporate Earnings, and Sectoral Insights (Feb 6, 2025)

Britannia Industries’ Q3 Profit Rises 4.8% YoY; Stock Gains Amid Strong Market Performance

Britannia Industries Reports 4.8% YoY Net Profit Growth in Q3 FY25

Britannia Industries’ Q3 Profit Rises 4.8% YoY Britannia Industries Ltd, a leading biscuits manufacturer, reported a 4.8% increase in its consolidated net profit for the third quarter ending December 2024, reaching ₹582.3 crore. This growth was driven by higher sales volumes and strategic price adjustments. In the same quarter of the previous year, the company had recorded a net profit of ₹555.66 crore, as per its regulatory filing.

Revenue from operations rose 7.9% year-on-year to ₹4,592.62 crore, compared to ₹4,256.33 crore in the corresponding period. Vice Chairman & Managing Director Varun Berry highlighted that despite sluggish demand in the FMCG sector and intensifying competition, Britannia achieved a strong performance, with both value and volume witnessing approximately 6% growth on a yearly basis.

Berry noted that rising costs of key raw materials such as wheat, palm oil, and cocoa continue to pose challenges. However, the company mitigated these pressures through selective price increases, strategic brand investments, and operational efficiencies, allowing it to maintain profitability while remaining competitive.

Total expenses for the quarter stood at ₹3,874.65 crore, marking a 9.3% increase. Meanwhile, Britannia’s adjacent product segments—including dairy drinks, croissants, and wafers—experienced double-digit growth. The company’s total income for the quarter reached ₹4,655.08 crore, reflecting an 8.08% rise.

Britannia continued expanding its distribution network, now directly reaching approximately 29 lakh retail outlets nationwide. Looking ahead, Berry stated that the company would keep a close watch on commodity price inflation and implement selective price adjustments where necessary. He reiterated that Britannia remains focused on increasing market share while maintaining profitability.

On Thursday, Britannia Industries’ shares closed at ₹4,958.95 on the BSE, reflecting a 0.56% increase from the previous trading session.

Britannia Industries Shares Rise Following Q3 Earnings; Brokerages Weigh In

Britannia Industries’ Q3 Profit Rises 4.8% YoY Shares of Britannia Industries Ltd surged over 2% in early trading on Friday after the FMCG giant reported its third-quarter earnings. The stock climbed 2.41% to ₹5,078.80 on the BSE, up from its previous close of ₹4,958.95. The company’s market capitalization increased to ₹1.21 lakh crore. Earlier in the day, Britannia’s stock opened higher at ₹5,024.85. The stock has recorded a 4.88% gain this year and has risen 9.15% over the past two years. Over a five-year period, Britannia’s stock has appreciated by 54.55%.

A total of 5,603 shares changed hands during the session, generating a turnover of ₹2.82 crore on the BSE. The stock has fluctuated within a 52-week range, hitting a low of ₹4,643.30 on April 19, 2024, and reaching a high of ₹6,473.10 on October 3, 2024.

From a technical perspective, Britannia’s relative strength index (RSI) stands at 47.8, suggesting that the stock is neither overbought nor oversold. With a beta of 0.3, the stock has exhibited very low volatility over the past year.

Brokerage Views

• Goldman Sachs has maintained a neutral rating on Britannia with a price target of ₹5,120. The brokerage noted that the company’s EBITDA exceeded expectations due to a one-time drop in staff costs. However, gross margins were under pressure due to rising input costs, despite steady revenue and volume growth.
• CLSA has given an outperform rating on the stock, setting a target price of ₹5,891. The brokerage pointed out that Britannia’s Q3 sales surpassed expectations and that rising input costs were balanced by reduced salary expenses. However, gross margins took a hit due to lower-than-expected employee costs. Additionally, rising commodity prices—particularly for wheat and palm oil—posed challenges. On a positive note, Britannia’s adjacent businesses, including dairy drinks, croissants, and wafers, recorded double-digit growth.

Financial Performance

Britannia Industries’ Q3 Profit Rises 4.8% YoY:  For Q3 FY25, Britannia Industries reported a 4.5% rise in consolidated net profit, reaching ₹582 crore, compared to ₹556 crore in the same period a year ago. The company’s revenue from core operations rose 6.4% to ₹4,463 crore, up from ₹4,191.83 crore in the previous year.

Total expenses for the quarter grew by 9% to ₹3,875 crore, largely due to an increase in material costs, up from ₹3,544 crore in the year-ago period.

Indian Stock Market Recap: Key Indices, Corporate Earnings, and Sectoral Insights (Feb 6, 2025)

Britannia Industries’ Q3 Profit Rises 4.8% YoY On February 6, 2025, the Indian stock market experienced notable movements across various sectors, influenced by corporate earnings reports and economic indicators.

Key Market Indices:

• Sensex: Declined by 213.12 points (-0.27%) to close at 78,271.28.
• Nifty: Dropped by 92.95 points (-0.39%) to settle at 23,696.30.

Corporate Earnings Highlights:

• ITC Limited: Reported a 1% year-on-year increase in net profit to ₹5,638 crore, with revenue rising by 8.4%. The company declared a second interim dividend of ₹6.50 per share for FY25.
• Britannia Industries: Achieved a 5% rise in net profit to ₹582 crore, and a 6.4% increase in revenue compared to the previous year.
• Hero MotoCorp: Saw a 12% growth in net profit, reaching ₹1,203 crore, and a 5% uptick in revenue. The company announced an interim dividend of ₹100 per share.
• State Bank of India (SBI): Recorded an 84% year-on-year surge in net profit for the quarter ending December 31, 2024, totaling ₹16,891 crore.
• Bharti Airtel: Reported a significant 460% increase in net profit to ₹16,135 crore, with a 19% rise in revenue.

Sectoral Insights:

Britannia Industries’ Q3 Profit Rises 4.8% YoY Recent studies have explored sectoral profitability in the Indian stock market using advanced models. For instance, research utilizing Long Short-Term Memory (LSTM) models has provided insights into sector profitability and volatility, aiding in informed investment decisions.

Investment Considerations:

Investors are advised to stay updated with corporate earnings and sectoral analyses to make informed decisions. Understanding sector-specific performance and leveraging predictive models can offer valuable insights into market dynamics.