Britannia Industries Ltd (BIL) share price plunged over 8 per cent on Monday after the FMCG major reported lower-than-expected financial results for the fourth quarter ended March 31, 2016. The company on Friday after market hours reported a 13.74 per cent increase in its consolidated net profit at Rs 190.23 crore for the quarter ended March 31, 2016. It had posted a net profit of Rs 167.25 crore in the same period of previous fiscal.
The share price of the company closed 8.61 per cent down at Rs 2,680.95.
Britannia’s net sales rose to Rs 2,189.83 crore during the quarter, up 7.78 per cent against Rs 2,031.83 crore in the same period of previous fiscal.
According to KR Choksey Shares & Securities, results of Britannia Industries remained below expectation with slow revenue growth and also high ad spends for Q4FY16.
Hiren Dhakan, associate fund manager, Bonanza Portfolio said, “Shares of Britannia Industries corrected on Monday after the company guided for a limited margin gains in the upcoming quarter.”
For the financial year ended March 2016, BIL reported 17.06 per cent year-on-year rise in net profit figures at Rs 806.11 crore against Rs 688.64 crore last year.