I believe that, though results look rosy, an investor community should wait for the conference call transcript and presentations before coming to any conclusion.
Also, one can read latest ICRA and CRISIL reports which are available for understanding of related party transactions.
There could be doubts due to the earlier Management record or transactions but one should study all the things in detail. One of the reasons for better margins could be due to price hikes which were taken during April-June and also during July-September quarter which might be reflecting now with lagging effect.
Also, as per Management, they have gained market share which is now at 15 year high level, aided by new product launches like Crosissants, NC Seeds and Herbs, Biscafe, Potazos, 50-50 Golmaal, Marble cake, Muffils across geographies. Due to pricing actions and intensified cost efficiency program, they have been able to improve margins beyond pre-COVID levels.
Disc : Invested and User of New Britannia products like Crosissants apart from old products. Views could be biased.
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