This is a case of “buy on expectation and sell on news”. The stock, post the good Q2FY21 earnings fell after two days of consecutive gains. It opened with a loss of 2.25% and went on to hit an intraday low at Rs.3575, down 5.3%.

Britannia posted a good set of earnings for Q2FY21. On a 12% (YoY) rise in total consolidated revenue at Rs.3419 crore, its net profit came in at Rs.495 crore, up 23%.

Total expenses were up 8% and despite that, it posted an EBITDA of Rs.675 crore, up 37% and margins rose from 16.1% to 19.8%.

The company said that on the cost front, it witnessed moderate inflation in the prices of key raw materials and expect the prices to be stable going forward given the positive outlook on monsoon & harvest. Measures like supply chain efficiencies, reduction in wastages and fixed costs leverage helped the company record a massive 390 bps increase in operating profit on YoY.

Looking ahead, the company said that it is keeping a close watch on macro-economic factors, changes in laws, evolving consumer behaviour and was framing its medium-term strategy, laying out scenarios to deal with this dynamic environment.