Revenue and net profit for Britannia increased in Q2FY24; shares rose 3%

 Revenue and net profit for Britannia increased in Q2FY24; shares rose 3%

In the September 2023 quarter, earnings before interest, depreciation, taxes, and amortisation (EBIDTA) for Q2FY24 increased by 22.5 percent year over year to Rs 872.4 crore.

One day after the international FMCG firm revealed its Q2FY24 results, on November 2, shares of Britannia saw a 2.8 percent increase at opening. The stock was trading at Rs 4,522.10 at 9:20 a.m.

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In a regulatory filing made after market hours on November 1, Britannia Industries said that its net profit for the quarter ended in September 2023 increased by 19.55 percent year over year to Rs 586.50 crore. At Rs 4,432.88 crore, revenue increased by 1.21 percent over the same time. In the September 2023 quarter, earnings before interest, depreciation, taxes, and amortisation (EBIDTA) for Q2FY24 increased by 22.5 percent year over year to Rs 872.4 crore.

It is anticipated that analysts may revise their ratings after today's results call. Nomura has a buy call with a target price of Rs 5,500, while Morgan Stanley, on the other hand, features a overweight call having a target price of Rs 5,013 on Britannia. Nomura analysts state that even if the second quarter's demand is still difficult, excellent margin delivery is still occurring. According to the study, growth was flat in comparison to estimates of 3–4%.

After two years of high inflation, Varun Berry, MD and CEO of Britannia Industries, stated: "We delivered a good performance in an obstacle environment." Our digital journey has gone well, with digital marketing gaining traction and using digitalization to improve decision-making and optimize distribution reach."