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Prataap Snacks' Q4 PAT jumps 44%

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Capital Market
Last Updated : Jun 18 2020 | 12:51 PM IST

Prataap Snacks rose 0.97% to Rs 605.45 after consolidated net profit rose 44% to Rs 19.76 crore on 2.6% rise in net sales to Rs 312.73 crore in Q4 March 2020 over Q4 March 2019.

The company reported pre-tax loss of Rs 1 crore in Q4 March 2020 as against pre-tax profit of Rs 12.48 crore in Q4 March 2019. The company reported current tax of Rs 0.94 crore in Q4 March 2020 compared with Rs 3.08 crore in Q4 March 2019. The company has recognized deferred tax income of Rs 18.75 crore in Q4 FY20. The result was announced after market hours yesterday, 17 June 2020.

Commenting on the performance, Amit Kumat, managing director Prataap Snacks said, "We delivered a robust performance in FY20 with revenue growth of 19.1% despite moderate consumption trends across the country. Even as we were witnessing an upswing in demand in January and February with a growth of more than 15% YoY, the rapid spread of the COVID-19 pandemic and subsequent lockdown disrupted the momentum. The last few months have witnessed unprecedented disruption in economic activity, manufacturing operations and supply chains due to the Covid-19 pandemic. Despite being a processed food company our mother plants at Indore received permission from local authorities to restart operations only in mid-May (Indore being a Covid hotspot), that too with reduced capacity. As a result, we were able to operate at only 25% and 50% of the pre-Covid level, on an overall basis, respectively in April and May. This was largely enabled by our Guwahati plant and 3P's across India which had restarted operations from mid-April in a progressive manner. I am pleased to share that major disruptions are largely behind us and as on date, overall operations have reported an utilisation level of over 80% of the pre-Covid level. While we begin FY21 on a cautious note, we see the current economic challenges due to COVID19 as a temporary phase and expect the business to ramp up in coming quarters as normalcy returns. We are confident of higher volumes across our products on the back of our four-pillar growth strategy."

Prataap Snacks is a leading Indian Snack Foods Company. It offers multiple variants of products across categories of Potato Chips, Extruded Snacks, Namkeen (traditional Indian snacks) under the popular and vibrant Yellow Diamond brand.

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First Published: Jun 18 2020 | 11:53 AM IST

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