Britannia Slumps as Iran War Sparks Cost Concerns

Shares of Britannia Industries fell nearly 5% on Friday, hitting a three-week low after the company announced plans to raise prices from the first quarter due to rising freight costs linked to the Iran war. The stock was down 3.3% at 5,624 rupees in morning trade, marking its steepest single-day decline in around 18 months if losses continue.

Indian consumer goods companies are increasingly resorting to price hikes as higher crude oil prices and rising input costs pressure profit margins. Analysts said the latest increases may still not fully offset the impact of escalating costs, while companies also face the challenge of protecting sales volumes and market share in a competitive market.

Britannia reported a more than 20% year-on-year rise in consolidated quarterly profit to 6.78 billion rupees, broadly matching analyst expectations. However, revenue growth slowed compared to the previous quarter. The company also said it is optimizing sourcing between India and overseas plants to reduce supply pressures by mid-May.

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