Prataap Snacks drops after Q1 PAT slides 30% YoY to Rs 9 cr

Prataap Snacks declined 3.78% to Rs 865.95 after the company's standalone net profit fell 29.73% to Rs 9.43 crore in Q1 FY25 as compared with Rs 13.42 crore posted in same quarter last year.

Revenue from operations increased 8.61% YoY to Rs 419.12 crore in Q1 FY25.

Profit before tax (PBT) slipped 24.63% to Rs 12.82 crore in Q1 FY25 as against Rs 17.01 crore in Q1 FY24.

During the quarter, operating EBITDA stood at Rs 30.03 crore, Margin at 7.1%

Amit Kumat, MD, Prataap Snacks, said, We are pleased to report a positive start to FY25 as we reported revenues of Rs. 4,214.4 mn in Q1 FY25, higher by 8.7% YoY. There are initial signs of improvement in consumer demand and easing of macro-economic pressures this quarter. Further, our strategic actions of enhancing range selling and implementing Sales Force Automation (SFA) are key drivers of this performance. A key highlight has been the continued strong growth in the categories of Namkeen and Pellets.

EBITDA has been impacted by the sharp rise in potato prices this season. We are working on measures such as cost optimization, grammage rationalization and recalibration of channel margins in order to mitigate the impact of higher potato prices.

We are also making progress on initiatives such as new product development and exports. We have appointed a strategic consultant to undertake a comprehensive transformation program in order to build upon the success of recent years. This program is focused towards improvement in revenue, operational efficiency, cost optimization and distribution enhancement. These initiatives coupled with an abundant monsoon and signs of improving consumer demand provide us optimism for the quarters ahead.

Prataap Snacks Limited (PSL) is a leading Indian Snacks Food Company. It offers multiple variants of products across categories of Potato Chips, Extruded Snacks, Namkeen (traditional Indian snacks) under the popular and vibrant Yellow Diamond and Avadh brands.

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