Bikaji Foods plunges 13%, logs sharpest intraday fall since listing post Q3

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Bikaji Foods International share price plunged 13 per cent to Rs 638.10 on the BSE in Friday's intraday trade after the company reported a weak set of numbers for the December quarter (Q3FY25). Bikaji Foods profit after tax (PAT) declined 39.6 per cent year-on-year (Y-o-Y) and 59.5 per cent quarter-on-quarter (Q-o-Q) to Rs 27.8 crore, due to higher operational expenses.

 

The stock price of the packaged foods company posted its sharpest intraday fall since its listing on November 16, 2022. Earlier, on September 12, 2023, Bikaji Foods had slipped 10 per cent in the intraday trade on the BSE, exchange data shows.

 

At 10:23 AM, Bikaji Foods stock was quoting 11 per cent lower at Rs 649 as compared to 0.20 per cent rise in the BSE Sensex. With today's fall, the stock has corrected 37 per cent from its 52-week high level of Rs 1,005 touched on September 27, 2024.

 

In Q3FY25, Bikaji's revenue from operations declined 0.09 per cent Y-o-Y to Rs 714.90 crore. In Q3FY25, the company booked PLI income of Rs 17.5 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) was down by 26.0 per cent Y-o-Y and 48.0 per cent Q-o-Q with an Ebitda margin of 7.8 per cent, down from 14.8 per cent in Q2FY25 and 12.0 per cent in Q3FY24. 

 

The management said the company experienced inflationary pressures in key commodities such as edible oil, potato, and besan, which impacted gross margin. The sharp rise in prices could not be fully passed on to the consumer, the management said.

 

"Regarding commodity prices, we continue to experience year-on-year inflation in key inputs such as edible oil, potatoes, packaging material and other essential commodities. To offset these rising costs, we have implemented selective price increases. While urban consumption showed signs of moderation, we have observed a noticeable uptick in rural demand. We remain optimistic that urban demand will return to its usual pace soon," Deepak Agarwal, managing director, Bikaji Foods International said.

 

Bikaji Foods International is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and is the second fastest growing company in the Indian organised snacks market. Bikaji Foods' product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range, and cookies.