Shares of Britannia Industries on Wednesday rose as much as 5.8 percent to Rs 3,299 on NSE as they reacted to the company's financial results for the second quarter of 2019-20.
On Monday, post market hours, the biscuit-maker posted an increase of 32.9 percent in its profit to Rs 402.73 crore for the September-ended quarter when compared to Rs 303.03 crore in the same period of the previous year. Its rise in profit was accounted to its premium products and cost-efficiency programme.
On Tuesday, stock markets were closed for the occasion of Guru Nanak Jayanti.
Britannia's revenue for the period grew by 7 percent to Rs 3,117 crore.
"On the cost front, we witnessed moderate inflation in the prices of key raw materials for the bakery business while there was an inordinate increase in milk prices which impacted our dairy business. We accelerated the drive on cost efficiencies and leveraged fixed costs which helped us improve the shape of our business and deliver high operating profits in the quarter," the company's managing director Varun Berry said.
Net sales rose 5.88 percent to Rs 3,022.91 crore during the quarter under review as against Rs 2,854.81 crore a year ago.
The brand is planning to scale up its business in its salted snacks segment in the West and croissant business in the East and South.