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Prataap Snacks firms up after decent Q2 figures

Capital Market 

Prataap Snacks rose 1.71% to Rs 955.30 after consolidated net profit rose 6.5% to Rs 11.98 crore on 35% increase in net sales to Rs 385.87 crore in Q2 September 2019 over Q2 September 2018.

The result was announced after market hours yesterday, 6 November 2019.

Commenting on the performance, Amit Kumat, the managing director of Prataap Snacks, said that, "The Yellow Diamond portfolio has delivered healthy top line growth across all categories on the back of continued network expansion, new 3P manufacturing facilities and focused marketing initiatives. We are pleased to return to robust double-digit growth this quarter as we reported revenue growth of 35.1% in the backdrop of slowing demand and consumption. This has been enhanced by strong growth from the sweet snacks segment and the Avadh portfolio."

"Margin performance has been achieved through a combination of raw material cost management, optimising product mix as well as economies of scale. In the next quarter, we expect short-term headwinds due to challenges in the potato crops, driven by continued unseasonal rains. We are working to minimise the impact through other product initiatives."

Prataap Snacks is engaged in processing, manufacturing and sale of various types of potato-based snacks, extruded snacks, namkeen and ethnic sweets under the brand name, yellow diamond. The company operates in the snacks food segment.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 07 2019. 11:44 IST