India, August 8, 2022: Prataap Snacks Ltd. (PSL), (BSE- 540724), (NSE- DIAMONDYD) a leading Indian Snacks Food Company has announced its financial results for the quarter ended 30th June 2022:
In Q1 FY23, PSL reported:
o Revenue of Rs. 3,825.7 million, registering growth of 37% yoy
o Operating EBITDA of Rs. (19.5) million, translating to a margin of (0.5)%
o PAT stood at Rs. (113.9) million
o EPS (Diluted) stood at Rs. (4.86) per share
Commenting on the Q1 FY23 performance, Mr. Amit Kumat – MD, Prataap Snacks Limited said.
“We are pleased to start FY23 on a strong note with robust revenue growth of 37% yoy in the first quarter. This has been driven by a steady uptick in consumption as well as the calibrated expansion in our distribution network. After two challenging years, this year starts with a more steady local backdrop characterised by the normalisation of activity levels and demand across our retail touchpoints.
Operationally, the sharp inflation in the prices of key raw materials especially palm oil have exerted significant pressure on profitability. Our continued efforts of cost optimization, gradual implementation of the direct distribution model, better price realisation and grammage rationalization helped restrict the impact on our margins. These process improvements and structural changes undertaken, have positioned us towards an elevated margin profile, once we revert towards a normalised raw material environment.
In recent weeks, there has been a reversal in commodity prices from the unusually elevated levels witnessed during Q1. This will favourably impact the economics of our business enabling us to improve margins and overall profitability. Combined with the strong sales momentum being witnessed, the outlook is favourable in terms of sustained growth as well as improved profitability. We are striving to build on this further in the quarters ahead.