Britannia profits spurt 33 pc

During the third quarter period, net sales during the period increased by 17.6 per cent to Rs 260.1 crore from Rs 221.1 crore in the same period last year. Net profit margins were up to 3.8 per cent from 3.3 per cent in theprevious period.

The Britannia scrip at the BSE shot up to Rs 973 per share on Monday from its previous close of Rs 938.50 per share. The Britannia stock has been moving upwards incessantly for the past two years. At its Monday close of Rs 973, the stock is presently available within five per cent of its all time high of Rs 1,033. The changes that the company has made to its product range in the last one and a half years is beginning to have an impact on its earnings. The 9 month profit growth was by 33 per cent. The stock on the other hand has been discounting this earning growth for some time now and even now is available at a high forward price earning multiple (on its annualised earnings) of 46 times.