Prataap Snacks skids on posting dismal Q3 numbers

Prataap Snacks tumbled 5.36% to Rs 956.85 after the firm reported a standalone net loss of Rs 37.92 crore in Q3 FY25, compared with a net profit of Rs 10.79 crore in Q3 FY24.

However, revenue from operations increased 8.97% YoY to Rs 442.68 crore in Q3 FY25.

The firm reported a pre-tax loss of Rs 56.13 crore in the December 2024 quarter, compared to profit before tax of Rs 19.52 crore posted in the December 2023 quarter.

During the quarter, the company reported an operating EBITDA loss of Rs 5.42 crore.

Amit Kumat, MD, Prataap Snacks, said, In a backdrop of persistent inflationary trends and sluggish consumer demand, we are pleased to report revenue growth of 9% on a YoY basis. There has been improved demand in rural markets, even as urban markets remained subdued.

Sales growth has been driven by a combination of expansion into new touchpoints as well as initiatives to optimize sales efforts at existing touchpoints and territories through enhanced efficiencies. Additionally, we formally commenced exports in Q3 with the shipment of initial batches.

The third quarter witnessed a continued increase in raw material prices, as anticipated, particularly for key ingredients such as palm oil and potato. Apart from the price rise, the reinstatement of import duties on crude and refined palm oil has contributed to the sharp increase in raw material costs in the current quarter.

To mitigate these challenges, we implemented several measures, including recipe adjustments, process reengineering, grammar, & trade margin optimization, which have helped to partially offset the impact of rising costs. We have also recognized an exceptional loss this quarter due to the fire at our Jammu facility. However, we maintained operational continuity at proximate markets by ramping up production at our Hisar and Karnal facilities.

Our focus will be to drive topline growth through the implementation of measures such as distribution expansion, range selling, and sales force automation, with an emphasis on regions where we enjoy a strong market share. We are undertaking efforts to enrich margins in a structural manner by aggressively optimising costs, introducing products to aid premiumization, and driving growth in exports. We are confident that the combination of these measures will help us to realise accretive value in 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, and Namkeen (traditional Indian snacks) under the popular and vibrant Yellow Diamond and Avadh brands.

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