Prataap Snacks Ltd. (PSL), (BSE- 540724), (NSE- DIAMONDYD) a leading Indian Snacks Food Company has announced its financial results for the quarter and nine months ended 31st December 2021:
In Q3 FY22, PSL reported:
o Revenue of Rs. 3,849.5 million, registering a growth of 13.5% yoy
o Operating EBITDA of Rs. 181.1 million, translating to a margin of 4.7%
o PAT* stood at Rs. 47.4 million, higher by 4.1% yoy
o EPS* (Diluted) stood at Rs. 2.02 per share
In 9M FY22, PSL reported:
o Revenue of Rs. 10,351.6 million, registering a growth of 20.2% yoy
o Operating EBITDA of Rs. 533.7 million, translating to a margin of 5.2%
o PAT* improved to Rs. 180.7 million, higher by 157.0% yoy
o EPS* (Diluted) stood at Rs. 7.70 per share
* Excluding exceptional item due to loss by fire at Kolkata plant
Commenting on the Q3 & 9M FY22 performance, Mr. Amit Kumat – MD & CEO, Prataap Snacks Limited said;
“We continue to rebuild our growth trajectory and have delivered an improved performance against the backdrop of gradual normalisation in the overall consumption environment. Revenue growth was healthy at 14% YoY driven by improved volumes which have surpassed pre-covid levels across most of the products categories. During the quarter, we have received approval from the Government of India under PLI scheme for expansion in food processing under the ready-to-eat category. Our investment commitment aggregates to ~ Rs.105 crore, of which we have already invested Rs. 15 crore with the balance to be invested between us and our contract manufacturing partners before March 2023. This will enhance our capacities and further strengthen our manufacturing footprint.
Operational challenges remain with palm oil prices remaining elevated during the quarter. In addition, there was a notable increase in the prices of laminates, which is a key raw material for our packaging process. Our cost optimisation programmes and implementation of the direct distribution model has enabled us to significantly mitigate the inflationary cost pressures. In Q3 FY22, our profitability was impacted by an exceptional expense of Rs. 14 crores, on account of loss caused by a fire at our Kolkata plant. The insurance claim is in process, and we expect to substantially recover this loss once the claim is settled in the coming quarters.
We did witness some disruptions on account of increasing restrictions from the third wave of Covid, but we are now seeing an easing of restrictions in most states. With our focus on direct distribution and tele-calling aiding an increased and more efficient footprint we are well-positioned to grow topline while cost reduction initiatives are contributing to the structural improvement in margins. With a wide product range and robust balance sheet we remain confident of delivering sustainable growth over the medium term”.
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