Britannia's management told CNBC-TV18 in an interaction that aims to achieve 35 percent of its revenue from the non-biscuit portfolio over the next three years and has a long-term target of 50 percent.
New launches like Biscafe, Golmaal, NC Seeds & Herbs and Marble cake also did well during the December quarter. The management said that these new businesses are growing faster than the average rate.
The management also said the time is now right to get back to its goal of becoming a "total foods company." The company aims to achieve growth in the mid-teens and volume growth of 10 percent for the core business.
For the December quarter, the company delivered on the operational front, with margin almost hitting a record high. The company has also consistently gained market share for 39 consecutive quarters.
Britannia's quarterly revenue met expectations, while all other parameters, including the bottomline exceeded estimates. The company's profit was also aided by an exceptional item of Rs 376 crore.
The expansion in margin during the quarter was attributed to opportunistic buying and moderation in inflation levels. Britannia's gross margin expanded 570 basis points from last year and 470 basis points from the September quarter.
The company is looking at other areas of cost cutting, including energy savings. It will save 2.5 percent on costs this year compared to the earlier target of 2 percent. Britannia also aspires to sustain its EBITDA margin above the pre-Covid levels, as all raw material cost inflation is covered by price hikes and cost savings.
Brokerage firm Morgan Stanley maintained its overweight rating on Britannia with a price target of Rs 4,427. Jefferies attributed the earnings beat to Britannia's EBITDA margin, which was the highest in nine quarters. The brokerage also has a buy rating on the stock with a price target of Rs 5,000.
Shares of Britannia are trading 4.1 percent higher at Rs 4,550, and are among the top gainers on the Nifty 50 index.
(Edited by : Rukmani Krishna)
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