Prataap Snacks Q2 Results: Profit plunges over 60% YoY amid cost pressures

Prataap Snacks Ltd. (PSL), a leading Indian snacks food company, has announced its financial results for the quarter and half-year ended 30th September 2024.

The company reported a profit of ₹6.15 crores compared with ₹16.52 crores last year. This represents a decline of 62.7% year-on-year.

For Q2 FY25, PSL reported a revenue from operations of ₹438.75 crores, comparted with ₹431.47 crores last year.

The company achieved an operating EBITDA of ₹19.2 crore, with an EBITDA margin of 4.3%. Profit After Tax (PAT) for the quarter stood at ₹6.2 crore, while the diluted Earnings Per Share (EPS) was ₹2.58.

For the first half of FY25, PSL posted revenue from operations of ₹86.25 crore. The company recorded an operating EBITDA of ₹49.2 crore, reflecting a margin of 5.7%. PAT for H1 FY25 was ₹15.6 crore, with a diluted EPS of ₹6.52.

"The business faced broad-based input cost pressures this quarter, with steep increases in prices for key ingredients such as potatoes, wheat, and gram. In response, we have implemented measures like grammage reduction and trade margin adjustments to enhance realizations which has helped us to partially mitigate the impact this quarter," Amit Kumat – MD, Prataap Snacks said.

Kumat added that the company had started exporting its products Q2, with initial batches to be dispatched in the third quarter.

"Products have been on boarded onto a quick commerce platform in Q2 with further platforms set to be added in Q3 enabling expanded distribution. These actions, combined with signs of improving rural demand and favourable seasonality trends in the second half of the fiscal year, are expected to support volume growth," he said.

Prataap Snacks' shares ended 4.1% lower at ₹1,050.10 on Monday.