Shares in India’s Britannia Industries Ltd rose as much as 10% on Monday after the maker of Good Day and Tiger biscuits reported a 28.4% jump in second-quarter consolidated net profit late on Friday. The company’s profit was 4.93 billion rupees ($59.97 million) in the three months ended Sept. 30, beating analysts’ expectations for a profit of 4.12 billion rupees, according to Refinitiv IBES data. Total revenue from operations rose 21.4% to 43.8 billion rupees from 36.07 billion rupees a year ago. Britannia’s beat comes after peer Hindustan Unilever reported a rise in profit, while Dabur India reported a lower profit hit by high commodity prices.
Food inflation in India, which accounts for nearly 40% of the Consumer Price Index (CPI) basket, rose 8.60% in September compared to 7.62% in August. The government recently extended sugar export restrictions by one year to October 2023 to curb domestic price rises after record exports. But prices of palm oil, a key ingredient in the fast-moving consumer goods, or FMCG, sector, have fallen sharply from their all-time high reached in March after Indonesia decided to suspend export duties in July due to a stockpile build-up. Britannia shares were the top gainers in the NSE Nifty 50 index.
