Bombay Burmah Trading Corp Reports Q1 Profit Surge Despite EBITDA Decline
Bombay Burmah Trading Corporation Limited (BBTC) reported a 9.50% increase in consolidated net profit to 2.41 billion rupees for Q1. Revenue grew by 8.50% to 47.00 billion rupees. However, EBITDA slightly declined to 7.24 billion rupees, with margins compressing to 15.37% from 16.98%. The food-bakery and dairy products segment, including Britannia Industries Limited, remained the primary revenue driver with 4,625.98 crores in revenue. BBTC's debt-to-equity ratio is 0.26 times, and its current ratio is 1.18.

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Bombay Burmah Trading Corporation Limited (BBTC) has reported a mixed set of financial results for the first quarter. The company saw a significant increase in net profit despite a slight dip in EBITDA margins.
Financial Highlights
BBTC reported a consolidated net profit of 2.41 billion rupees for Q1, marking a 9.50% increase from 2.20 billion rupees in the same period last year. This growth in profitability comes alongside a revenue increase to 47.00 billion rupees, up from 43.30 billion rupees year-over-year, representing an 8.50% growth.
However, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a slight decline to 7.24 billion rupees from 7.35 billion rupees in the previous year. Consequently, the EBITDA margin compressed to 15.37% from 16.98% year-over-year.
Segment Performance
The company's food-bakery and dairy products segment, which includes its subsidiary Britannia Industries Limited, continued to be the primary revenue driver. This segment reported revenue of 4,625.98 crores for the quarter, showing robust growth and contributing significantly to the overall performance.
Management Commentary
Ness Wadia, Managing Director of BBTC, stated, "Our Q1 results demonstrate the resilience of our business model. Despite challenges in certain segments, we've managed to grow our top line and bottom line. We remain committed to operational efficiency and strategic growth initiatives across our diverse portfolio."
Investor Notes
As of the latest filing, BBTC reported a debt-to-equity ratio of 0.26 times, indicating a relatively low leverage. The company's current ratio stands at 1.18, suggesting a healthy short-term liquidity position.
Investors should note that while the company has shown profit growth, the slight decline in EBITDA margins may warrant attention in future quarters. The company's ability to maintain profitability while managing operational costs will be crucial for sustained performance.
BBTC continues to be a significant player in India's diversified business landscape, with its performance closely tied to consumer trends, agricultural outputs, and overall economic conditions.
Historical Stock Returns for Bombay Burmah Trading
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-1.24% | -2.23% | -5.56% | -1.70% | -19.36% | +25.86% |