(Reuters) -Indian biscuit maker Britannia Industries reported a 23% rise in second-quarter profit and named former Birla Opus chief Rakshit Hargave as its CEO on Wednesday.
The news come as consumer goods makers in India are navigating a period of tax rate cuts and shifting demand trends, adding pressure to protect margins and sustain growth.
The maker of Jim Jam and NutriChoice biscuits said its consolidated net profit rose to 6.54 billion rupees ($74.4 million) in the July-September quarter, from 5.31 billion rupees a year earlier.
Net profit margins came in at 13.5%, versus 11.4% a year earlier, powered by price hikes. Brokerage Jefferies had estimated price hikes of 5% to 6% in the period.
Sales rose 4% to 47.52 billion rupees.
India had cut goods and services tax on several items in late September. Consumer goods firms faced short-term disruption in new orders as retailers rushed to clear higher-priced inventory ahead of the tax change.
NEW FACE AT THE HELM
Hargave will start his term as Britannia’s CEO on December 15, succeeding Rajneet Kohli, who stepped down in March.
Earlier in the day, Hargave announced his resignation from Birla Opus, Grasim Industries’ paints unit.
Under his leadership, Birla Opus gave market leader Asian Paints one of its biggest challenges in decades, cornering a significant market share in about a year of its launch in February 2024.
Hargave was at Grasim for four years. He has also worked with Indian units of consumer goods giant Unilever and pizza chain Domino’s Pizza.
($1 = 87.8950 Indian rupees)
(Reporting by Hritam Mukherjee, Ananta Agarwal and Meenakshi Maidas in Bengaluru; Editing by Leroy Leo)
