Vinita Bali in Calcutta on Monday. Picture by Kishor Roy Chowdhury
Calcutta, Aug. 12: Bakery major Britannia Industries registered a nearly two-fold rise in net profit at Rs 89.58 crore for the first quarter ended June 30 against Rs 46.50 crore in the corresponding quarter a year ago.
Vinita Bali, managing director of Britannia Industries, attributed the growth in net profit to higher volumes, better product mix and a higher price realisation.
“The expansion in margin is consequent to an improvement in the product mix and higher price realisation coupled with an emphasis on cost management. The growth we saw in the second half of last year continued,” Bali said. The company had revised its prices in the previous fiscal to factor in the higher input cost.
Consolidated income rose to Rs 1,539.62 crore in the April-June quarter from Rs 1,348.15 crore a year ago.
News of the profit rise helped the Britannia scrip to gain 5.43 per cent to end at Rs 732 on the Bombay Stock Exchange today.
The company is set to commission its sixth manufacturing plant in Gujarat in the second quarter. This will be its first plant in the western part of the country. The other plants are located in Calcutta, Delhi, Uttarakhand, Bihar and Odisha. Bali said the plant, which will produce biscuits, was necessary for back-end support for the company to grow.
Britannia has decided to sell its plant in Chennai. The plant was shut down as it was not efficient, Bali said. It has also decided to relocate its existing executive office in Bangalore to a commercial hub nearby.
Balmer Lawrie has reported a 24 per cent decline in net profit at Rs 34.63 crore in the first quarter ended June 30 compared with Rs 45.63 crore in the corresponding period last year.
Total income rose 2 per cent to Rs 698.55 crore during the quarter from Rs 683.09 crore in the same period last year.