The PAT was 7% lower on a sequential basis versus Rs 560 crore reported in Q4FY25 despite a 4% uptick in the company’s topline in the quarter under review compared to Rs 4,432 crore reported in the January-March quarter.
Expense breakdown
- Total expenses: Rs 3,973 crore ( Rs 3,739 crore in Q4 FY25; Rs 3,600 crore in Q1 FY25).
- Cost of materials consumed: Rs 2,551 crore, up 15 % YoY and 4.5 % QoQ.
- Employee benefits were the next-largest expense.
- Finance cost fell to Rs 26 crore ( Rs 31 crore in Q4 FY25; Rs 29 crore in Q1 FY25).
- Profit before tax stood at Rs 701 crore ( Rs 752 crore in Q4 FY25; Rs 681 crore in Q1 FY25).
Management commentary
Commenting on the performance, Executive Vice-Chairman, Managing Director & Chief Executive Officer Varun Berry said that the Q1 performance underscored the effectiveness of company’s focused execution strategy, which entailed maximising value from existing outlets, enabling more agile servicing to key stores, and driving operational efficiencies across the distribution network, leading to a growth of 10% in sales.
The company reported a robust double-digit growth across four focus states and in adjacent bakery categories such as rusk, wafers, and croissant.
Marginal uptick in consumption across both urban and rural markets — underpinned by moderating inflation, helped us go back to double-digit growth after the last few periods, Berry said.
“As the year progresses, our focus will remain on sustaining a healthy growth trajectory while protecting margins amidst a heightened competitive landscape across product categories. We aim to further reinforce our market leadership through continued investments in brand building and innovations.Also Read: Bharti Airtel Q1 Results: Cons PAT jumps 43% YoY to Rs 5,948 crore, misses Street estimates; ARPU rises to Rs 250(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
