Prataap Snacks Ltd. (PSL), (BSE- 540724), (NSE- DIAMONDYD) a leading Indian Snacks Food Company has announced its financial results for the quarter and half year ended 30th September 2022:
In Q2 FY23, PSL reported:
o Revenue of Rs. 4,572.8 million, registering growth of 23.4% yoy
o Operating EBITDA of Rs. 220.9 million, translating to a margin of 4.8%
o PAT stood at Rs. 42.4 million
o EPS (Diluted) stood at Rs. 1.81 per share
In H1 FY23, PSL reported:
o Revenue of Rs. 8,398.6 million, registering growth of 29.2% yoy
o Operating EBITDA of Rs. 201.4 million, translating to a margin of 2.4%
o PAT stood at Rs. (71.5) million
o EPS (Diluted) stood at Rs. (3.05) per share
Key Development
o The Company has formalized a plan to expand its manufacturing footprint by setting up a facility in Jammu Region. Land acquisition has been partially completed and the proposed plant will be the second largest facility after Indore. The proposed investment in the facility will qualify as committed investment as per the approval of the PLI scheme.
Commenting on the Q2 &H1 FY23 performance, Mr. Amit Kumat – MD, Prataap Snacks Limited said.
“We are delighted to report a strong performance with revenues higher by 23% yoy in Q2 and by 29% yoy for the half year. The improvement in overall activity levels supported by resilient consumption patterns has led to higher demand. Our efforts to expand our network through addition of new distributors and more retail touchpoints combined with optimising existing distribution strength have also contributed to the growth momentum. We have added 25 vehicles to our fleet in the last 6 months which has also aided in better distribution efficiency.
We are also pleased to share that our subsidiary Avadh has also delivered strong revenue growth on a yoy basis accompanied by an EBITDA margin of 8.7% for the quarter, surpassing the margin performance of the parent company.
This quarter, we witnessed the initial impact of softening of palm oil prices leading to improved profitability. The commodity cycle has started to ease out and as we move ahead, we anticipate higher positive impact on EBITDA margin from reducing input prices. The initiative of direct distribution has led to compression of our distribution layers leading to a structural improvement in EBITDA margin.
Lastly, we are excited with our plan to further increase our manufacturing footprint by setting up a facility in Jammu region. This will enable us to better serve markets in North India. In the backdrop of multiple tailwinds, the outlook is bright for both revenue growth and enhanced profitability.”
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