Britannia & Godrej Consumer Products Q2 Results Reflect In Stock Gains

Britannia Industries and Godrej Consumer Products posted the September quarterly results with healthy profits leading to rise in their stock prices. While Britannia closed at Rs 4527 or 2.96 per cent higher and traded as the top Nifty gainer, whereas Godrej Consumer Products rose 1.69 per cent and closed at Rs 991 on the National Stock Exchange (NSE).

Britannia Industries reported a 19.55 per cent year-on-year (YoY) increase in consolidated net profit at Rs 586.50 crore in the second quarter ending September 2023, primarily attributed to a decline in commodity prices. The company posted a net profit of Rs 490.58 crore, according to the company’s regulatory filing.

While net sales saw a marginal increase to Rs 4,370.47 crore during the quarter, compared to Rs 4,337.59 crore in the previous year, revenue from operations in the September quarter reached Rs 4,432.88 crore, reflecting a 1.21 per cent uptick.

Britannia Industries, known for brands like Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold, recorded a 2.33 per reduction in total expenses, amounting to Rs 3,685.56 crore.

FMCG giant Godrej Consumer Products with the market cap of Rs 1,01,192 reported a 20.59 per cent year-on-year (YoY) rise in its net profit at 433 crore for the September quarter, compared to Rs 359 crore in the same quarter in the previous fiscal year.

The company’s revenue increased to Rs 3,601 crore for the quarter that ended on 30 September, from 3,391 crore the previous year in the same quarter. 

During the second quarter, the company experienced a 10 per cent growth in volume, with its India business alone registering an 11 per cent increase.

Breaking down the sales figures, the Indian operations reported revenues of Rs 1,003 crore in the personal care segment and Rs 913 crore in the home care segment.

Within home care, the air freshener category achieved double-digit growth, while the household insecticides category faced challenges due to unfavourable monsoons.

The recently acquired Raymond Consumer Care brands, Park Avenue and KamaSutra, contributed sales of Rs 142 crore during the September quarter. Godrej Consumer confirmed that integration post-acquisition is largely complete and cost synergies are anticipated to materialise in the second half of the financial year.

The Stocks of Britannia and Godrej Consumer Products have delivered merely 3.3 and 12.8 per cent gains year to date (YTD) whereas the broader Nifty FMCG index has delivered returns of 16.5 per cent. Moreover, the Britannia stock has underperformed the benchmark Nifty and Sensex returns of more than 5 per cent YTD.