Britannia shares jump 10% after profit beat

Shares of India's Britannia Industries Ltd rose as much as 10 per cent on Monday, after the Good Day and Tiger biscuits maker reported late Friday a 28.4 per cent jump in second-quarter consolidated net profit.

The company's profit was Rs 493 crores for the three months ended on September 30, beating analysts' expectations for a profit of Rs 412 crores, according to Refinitiv IBES data.

Total revenue from operations rose 21.4 per cent to Rs 4,380 crores from Rs 3,607 crores a year ago.

Also Read | Rejig at Britannia: Rajneet Kohli appointed as CEO, Varun Berry elevated as executive vice-chairman, MD

Britannia's beat comes after peers Hindustan Unilever reported rise in profit, while Dabur India posted lower profit hit by high commodity prices.

India's food inflation, which accounts for nearly 40 per cent of the consumer price index (CPI) basket, rose 8.60 per cent in September, compared to 7.62 per cent in August. Recently, the government extended curbs on sugar exports by one year until October 2023 to contain a rise in domestic prices following record exports.

However, palm oil prices, a key ingredient in the fast-moving consumer goods or FMCG sector, have come down significantly from their all-time high touched in March, following Indonesia's decision to suspend export levies in July because of a build up of stocks.

Britannia shares were the top gainer in the NSE Nifty 50 index.