Things are looking "reasonably good" and the company is producing at full capacity, Britannia Industries MD Varun Berry told CNBC-TV18.

Last week, the company reported a strong set of numbers for the June quarter, with net profit more than doubling and revenue from operations rising over 26 percent year-on-year.

He declined to make any forecast for the full year performance, but said there were tailwinds for the packaged snacks industry.

Berry said absence of street food had led to increased consumption of biscuits by households.

Berry cautioned investors that a 22 percent volume growth and 21 percent margin were tough to sustain. He also said that the promoters were not looking to sell a stake in the company.

Following are the highlights from the interview:

On markets:

The company's focus towards rural market development is paying off

Rural growth has been aided by good monsoon and demand for agriculture produce

Growth in rural markets will continue to outpace that in urban markets

Once the weakest market, UP is now the second-largest market for the company ow

On product categories:

Health and hygiene are the focus categories of the future.

The company is selling more of premium products now

The reduction in ad spends by the company is temporary

On operations:

Don't think 22 percent volume growth is sustainable

Don't think 21 percent margins can be maintained

Raw material basket saw 3 percent inflation; commodity costs not an issue this year

On capex:

Will spend Rs 720 crore over next 24-30 months in capex

Looking at starting 4 new facilities

First Published:Jul 20, 2020 11:12 AM IST