Prataap Snacks Ltd Reports Q1 FY25 Results with ₹4,214.4 Million Revenue

Prataap Snacks Ltd a leading Indian Snacks Food Company has released its financial results for the quarter ended June 30, 2024.

For Q1 FY 2025, the company achieved a notable revenue from operations of ₹4,214.4 million, reflecting robust growth and consumer demand for its diverse product portfolio.

The operating EBITDA stood at ₹300.3 million, with a margin of 7.1%, demonstrating effective cost management and operational efficiency. The profit after tax (PAT) for the quarter was ₹94.4 million, translating to an earnings per share (EPS) of ₹3.95, underscoring the company’s solid profitability and shareholder returns.

The return on capital employed (RoCE) for the quarter was reported at 9.1%, highlighting prudent capital utilisation. Notably, the RoCE from Prataap Snacks’ flagship Yellow Diamond salty snacks business was an impressive 15.3%, reflecting the segment’s strong performance and strategic market positioning. Overall, Prataap Snacks Ltd’s Q1 results showcase its growth trajectory and operational strength in a competitive market.

Commenting on the financial performance, the MD of Prataap Snacks Limited, Mr Amit Kumat, said, “We are pleased to report a positive start to FY25 as we reported revenues of ₹4,214.4 million in Q1 FY25, higher by 8.7% YoY. There are initial signs of improvement in consumer demand and easing of macroeconomic pressures this quarter. Further, our strategic actions of enhancing range selling and implementing Sales Force Automation (SFA) are key drivers of this performance. A key highlight has been the continued strong growth in the categories of Namkeen and Pellets.”

He further added, “We have reported an EBITDA of ₹300.3 million in Q1 FY25, which represents the 6th consecutive quarter of EBITDA in excess of ₹300 million. EBITDA has been impacted by the sharp rise in potato prices this season. We are working on measures such as cost optimisation, grammage rationalisation and recalibration of channel margins in order to mitigate the impact of higher potato prices.”

The MD also stated that in Q4 FY24, they launched new facilities, which have now stabilised and are expected to see increased utilisation in the upcoming quarters. The company is also advancing on several strategic initiatives, including new product development and expanding its export market. To further enhance its performance, Prataap Snacks has appointed a strategic consultant to lead a comprehensive transformation program. This program aims to build on the company’s recent successes by focusing on revenue growth, operational efficiency, cost optimisation, and distribution improvements.

The company remains optimistic about the future, buoyed by an abundant monsoon and signs of rising consumer demand. These positive factors, combined with their strategic initiatives, position Prataap Snacks Ltd well for continued growth and success in the coming quarters.

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