On Wednesday morning, trade on BSE shares of Britannia Industries has surged 10 per cent to Rs 3 590.85. In the March quarter (Q4FY22), the company posted volume growth of 4 per cent. The BOD had recommended a dividend of Rs 56.5 per share.

However, the stock erased its partial intra-day gain and was up 4 per cent at Rs 3,412. In comparison, the S&P BSE Sensex was down 0.05 per cent at 56,948 points.

The country’s leading food company reported consolidated sales growth of 15 per cent year on year (YoY) at Rs 3,508 crore and compact operating profit growth of 10 per cent YoY at Rs 499 crore for the quarter. However, the consolidated gross margin contracted by 240 basis points (bp) YoY to 38 per cent. The lower staff cost or other expenses (-50bp/-120bp YoY) drove a 60bp contraction in EBITDA margin to 15.5 per cent.

Meanwhile, the company delivered robust top-line growth of 15 per cent and mid-single-digit volume growth. “The economy was impacted by global geo-political factors, which caused a further surge in inflation this quarter. We continued to take price increases judiciously and remained aggressive on the cost front. We shall further take calibrated price increases and drive cost leadership to manage profitability,” the management said.