On June 7, Britannia Industries Limited shares hit a new record of Rs 4867.05 on BSE, with the stock increasing for the fourth straight session and gains in the diverse market.

At noon, it was trading at Rs 4858.65, up 3.3% from the earlier close, while the benchmark Sensex was at 62,889 points, 0.15% higher from the earlier closing.

Since March 28, Britannia, which gained nearly 5% in the four days, plunged more than 16%, while Sensex and Nifty gained 6% each.

The stock increased after the FMCG major reported positive earnings, analysts said. Britannia reported a 47.53% YoY rise in combined net profit to Rs 557.60 crore for Q4FY23, supported by gains from distribution expansion, cost management and softening commodity prices.

Revenue from operations came in at Rs 4,023.18 crore, recording a growth of 13.31% from Rs 3,550.45 crore in the 2022 period.

For the second consecutive quarter, Britannia’s gross margin gave a positive surprise by expanding by 70 bps QoQ and an impressive 580 bps YoY to reach 43.1%. This represents an all-time gain for the company.

A Jefferies report mentioned that the prominent improvement in gross margin was chiefly driven by a fall in palm oil prices and packaging materials, offsetting inflationary pressures witnessed in commodities like wheat and dairy.

The optimistic impact of these factors contributed to Britannia’s excellent gross margin performance in the period.

Analysts said volume growth was 1% for Q4, which was below prospects. The Britannia management is confident about an uptick in volume growth in the upcoming FY24.