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Britannia Industries Q1-2015 marketing spend down 6 per cent, PAT up 27 per cent y-o-y
BENGALURU: Britannia Industries Limited (Britannia) spent 5.9 per cent less towards Advertisement and Sales Promotion (ASP) in Q1-2015 at Rs 138.43 crore (7.7 per cent of Net total Income from Operations or TIO) versus Rs 147.11 crore (9.5 per cent of TIO in the year ago quarter and 5.3 per cent less than the Rs 146.19 crore (8.1 per cent of TIO) in the immediate trailing quarter.
As a matter of fact, the company’s ASP in terms of percentage of TIO at 7.7 per cent was the lowest spend by the company over a 9 quarter period staring Q1-2013 till the current quarter Q1-2015. In terms of rupee value, Britannia’s ASP in Q1-2013 was the lowest over the nine quarter’s under consideration at Rs 112.96 crore, but was 8.3 per cent of TIO in that quarter. The company’s highest spend in terms of percentage of TIO was in Q1-2014 at 9.5 per cent (Rs 147.11 crore). The company’s highest spend in absolute rupees was in Q3-2014 at Rs 155.28 crore (8.7 per cent of TIO) during the nine quarters under consideration in this report.
Note: 100,00,000 = 100 lakh = 10 million = 1 crore
Britannia’s TIO in Q1-2015 was up 15.2 per cent at Rs 1786.99 crore versus Rs 1551.51 crore in Q1-2014 and 1.4 per cent lower than the Rs 181.44 crore in Q4-2014.
Overall, across the nine quarters’ though the ASP spend in absolute rupee shows an upward linear trend. However, in terms of percentage of TIO, the ASP linear trend shows a decline. Britannia’s TIO shows an increasing linear trend. Please refer to Fig 1 below.
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Britannia’s PAT in Q1-2015 at Rs 113.66 crore was the highest in terms of absolute rupees as well as percentage of TIO at 6.4 per cent. In the year ago quarter, (Q1-2014) PAT at Rs 89.49 crore (5.8 per cent of TIO) was 27 per cent lower than the current quarter PAT (Q1-2015). The current quarter PAT was also 5.6 per cent higher than the Rs 107.66 crore (5.9 per cent of TIO) in Q4-2014. Overall, Britannia’s PAT seems to be moving upwards both in terms of absolute rupees and percentage of TIO (Linear trends not shown in Fig 2 below).
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Overall, the FMCG, Food and Biscuit industries have shown declining growth over 18 months starting January 2013 (Q4-2013) from about 15-16 per cent for each industry to about 6 to 8 per cent in June 2014 (Q1-2015) says the company in an analyst meet/investor’s presentation. The company’s simple average TIO growth across the nine quarters under consideration is 3.6 per cent, and across the six quarters starting Q4-2013, it is 1.8 per cent, indicating a lower than industry average growth, hence overall reduction in share in a market that is growing.
Please refer to figure 3 below. Q1 of three years (2013, 2014 and 2015) have shown low growth or de-growth in terms of q-o-q growth of TIO. Generally Q2 over the years has shown higher growth, maybe, if the trend continues this year, the company may show double digit TIO growth in the coming quarter, and, with the upward trend in PAT both in terms of absolute rupees as well as in terms of percentage of TIO, PAT in Q2-2015 could be a new record?
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YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
