Britannia Industries reported a net profit of Rs 335.74 crore in the April-June quarter, down 13.24% from the Rs 387.01 crore it had reported in the same period last year, as higher input costs and soaring inflation weighed on the company’s margins.
In Q1FY23, the company reported revenue of Rs 3,700.96 crore, an increase of 8.74% from the Rs 3,403.46 crore it reported in the year-ago period. Sequentially, the manufacturer’s net profit slipped 11.16% from the Rs 377.95 crore it had reported in the January-March period while its revenue climbed just 4.23% from Q4FY22’s Rs 3,550.45 crore.
Total expenses were also up 12.28% to Rs 3,293.15 from Rs 2,932.96 reported in the corresponding quarter last year. While the company reported an operating profit of Rs 450 crore in the quarter, its operating margin fell to 12.11% in Q1FY23 from Q1FY22’s 14.90%. In the January-March quarter it at 14.35%.
Varun Berry, managing director, Britannia Industries, said commodities like wheat and industrial fuel witnessed high price pressures between 15% and 20%, impacting margins. But he said they would improve going forward.