MAM
Britannia Industries shows 5.3 per cent YoY revenue growth in Q2
Mumbai: As a child, I fondly remember reaching for Britannia’s Good Day cookies, drawn in by the promise that even on a rough day, those cookies could spark a smile. This quarter, it seems Britannia itself enjoyed a ‘Good Day’ as it reported resilient financial results for Q2, ending September 2024. The company’s total revenue from operations rose to Rs 4,667.57 crore, a 5.3 per cent increase year-on-year, driven by surging domestic demand, a broadened product range, and expanded distribution across India’s rural and urban sectors. Yet, while revenue painted a bright picture, profitability revealed a bit more complexity. Net profit declined by around 9.4 per cent to Rs 531.55 crore, reflecting the pressures of rising costs that have started to weigh on margins.
The quarter’s revenue increase was complemented by other operating income, totaling Rs 4,713.57 crore, which is a notable rise from Rs 4,485.23 crore in Q2 FY24. Despite this uptrend in revenue, Britannia’s profitability faced headwinds. The company’s cost of materials soared by 12.9 per cent, amounting to Rs 2,578.05 crore, signaling intensified raw material cost burdens. Additionally, employee benefits expenses reached Rs 232.28 crore, up by 45.3 per cent year-on-year, reflecting Britannia’s focus on workforce expansion and talent retention amid a competitive labor market.
VC & MD, Varun Berry said, “An eight per cent volume growth with a sequential increase in revenue and operating profits are satisfactory results in the face of severe commodity inflation leading to a tepid consumer demand scenario in most FMCG categories.”
The profit before tax, after adjusting for exceptional items, stood at Rs 715.15 crore, a decrease from Rs 798.63 crore reported in the same quarter last year. Tax expenses further tightened the profit margin, with total tax outflows recorded at Rs 183.60 crore. This leaves the net profit for the quarter at Rs 531.55 crore, showing a decline from Rs 586.50 crore in Q2 FY24. Britannia’s operational expenses also contributed to the contraction in net margins, rising by 11.1 per cent to Rs 3,994.87 crore, primarily due to inflationary pressures on logistics and supply chain costs.
The company reported consolidated sales of Rs 4,566 crore for Q2, a year-over-year growth of 4.5 per cent. However, profit after tax (PAT) decreased by 9.6 per cent to Rs 531 crore. Compared to the prior quarter, sales rose by 10.6 per cent, with a 5.1 per cent PAT increase. For the six months ending 30 September 2024, sales grew 4.3 per cent year-on-year, while PAT declined by 0.8 per cent. The results highlight Britannia’s sales resilience amidst economic challenges, though profitability remains impacted by rising costs and workforce investments.
A notable development during this quarter was Britannia’s exceptional expenses totaling Rs 24.79 crore, largely attributed to voluntary retirement schemes (VRS) for factory workers and associated labor restructuring efforts. These measures are expected to enhance operational efficiency in the long term by streamlining the workforce at key manufacturing facilities. Britannia also invested heavily in contract labor in the wake of increased production targets, a move aimed at reinforcing the company’s manufacturing capabilities to support market demand.
Despite the contraction in profitability, Britannia’s balance sheet remains solid, with a positive outlook on revenue streams from both domestic and international markets. The ongoing demand for packaged foods and baked goods continues to present a strong growth trajectory for the company. “Our agenda of being a ‘Total Global Foods Company’ is progressing well with our adjacent businesses such as Croissant, Milk Shakes, Wafers and International growing at a healthy pace. Making strides in this direction, we are working on redefining our distribution strategy to optimise range distribution and improve outlet servicing, and the preliminary results of the pilots across 25 cities covering more than 50,000 outlets are encouraging” added Berry.
The company’s total comprehensive income, factoring in other gains, came to Rs 533.01 crore, slightly down from Rs 589.39 crore in Q2 FY24. Additionally, Britannia’s consistent investments in expanding its product portfolio and supply chain suggest a robust setup for future growth, although profitability will likely remain susceptible to fluctuating raw material costs and labor expenses. Berry remarked on the situation, “In the context of steep rise in prices of key commodities such as Wheat, Palm, Cocoa etc, we demonstrated agility in initiating focused pricing actions and identifying new levers for cost optimisation across the value-chain. As a result, we maintained a healthy operating margin of 15.5 per cent during the quarter. We are committed to investing in capability enhancement and brand development with the clear objective of driving market share and sustaining profits”.
Britannia Industries has demonstrated both resilience and adaptability in a challenging financial environment, marking stable revenue growth yet grappling with cost pressures. The outlook remains cautiously optimistic, bolstered by Britannia’s solid market presence and strategic product diversification.
MAM
BLR Airport Launches ‘Connections’ Service to Ease Transit Travel
New initiative targets smoother transfers as Bengaluru hub traffic rises 30 per cent.
MUMBAI: Missed connections may be a traveller’s nightmare but Bengaluru is trying to make them a thing of the past. Kempegowda International Airport Bengaluru (BLR Airport) has rolled out ‘Connections by BLR’, a new transfer programme designed to take the friction out of connecting journeys. Built around three pillars ease, efficiency and experience,the initiative aims to simplify what is often the most stressful leg of air travel.
The move comes as transfer traffic at BLR Airport climbs sharply, up more than 30 per cent year-on-year. Transfers currently account for around 15 per cent of total passenger traffic and are projected to touch 20 per cent by 2026, signalling a clear shift in how the airport is positioning itself within airline networks.
At its core, the programme focuses on making navigation intuitive and downtime more comfortable. Dedicated transfer desks have been set up across terminals, supported by colour-coded wayfinding blue and yellow signage designed for quick recognition. Inter-terminal movement is being streamlined through complimentary shuttle services with predictable wait times, while designated transfer zones aim to reduce passenger confusion.
Beyond logistics, the airport is leaning into experience. Travellers in transit now have access to a wider choice of lounges, curated retail and food and beverage options, as well as sleeping pods for short stays. For longer layovers, transit hotels in both Terminal 1 and Terminal 2 offer boutique in-terminal accommodation, an increasingly sought-after feature as global travel patterns evolve.
The timing is strategic. BLR Airport now connects to 114 passenger destinations 80 domestic and 34 international with key routes spanning Delhi, Mumbai, Kolkata, Hyderabad and Pune domestically, and Singapore, London Heathrow, Dubai, Abu Dhabi and Kuala Lumpur internationally. Recent additions such as Hindon, Bidar and Silchar within India, alongside Dammam, Hanoi and Riyadh overseas, are further expanding its reach.
Infrastructure is also catching up with ambition. Developments including the West Cross Taxiway, Terminal 1 refurbishment and Terminal 2 expansion are laying the groundwork for higher capacity and smoother operations critical for any airport aiming to become a serious transfer hub.
Bangalore International Airport Limited chief operating officer Girish Nair framed the initiative as both a response to demand and a forward-looking play. He pointed to the growing depth of the airport’s network and the opportunity to build a more reliable transfer ecosystem that benefits both passengers and airline partners.
In an era where travel is as much about transitions as destinations, BLR Airport is betting that a seamless connection might just be the journey’s most important upgrade.
