Shares of Britannia Industries rose as much as 7.5 percent in trade on Wednesday to a new all-time high of Rs 3,708. A day before, the biscuit maker reported a consolidated profit of Rs 374.75 crore for the March-ended quarter, a 26.1 percent growth from the same period a year ago, driven by lower tax cost by 45 percent (YoY).
In the same period of the previous year, the company posted a profit of Rs 297.23 crore.
Revenue from operations for the quarter rose 2.5 percent on a year-on-year basis to Rs 2,867.7 crore
The company estimates a 7-10 percent impact on its revenue and net profit growth due to COVID-19. The company's gross margins fell 150 basis points (bps) to 39.7 percent and raw material costs fell 1.2 percent to Rs 1,363 crore.
"Our drive on cost efficiencies, reduction in wastages and ability to leverage fixed costs helped us improve the shape of our business and record a 40 bps increase in operating profit during the quarter despite the Covid-19 pandemic," said Varun Berry, Managing Director, Britannia.
The company also declared an interim dividend of Rs 35.