Bikaji Foods jumps 10% after steady Q2FY25 results; profit soars 15%

Bikaji Foods International share price surged 9.82 per cent at Rs 918 per share on the BSE in Friday's intraday deals after the company reported a decent quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25). 

 

The snacks manufacturer reported a profit of Rs 68.6 crore for the quarter ended September, up from Rs 59.8 crore in the same quarter last year, rising 14.71 per cent year-on-year, the company said in an exchange filing on Thursday. Revenue surged by 19 per cent Y-o-Y to Rs 721.2 crore during this period.  Operating income, or earnings before interest, taxes, depreciation, and amortisation (Ebitda), rose 22 per cent to Rs 106.7 crore, with the Ebitda margin expanding to 14.8 per cent from 14.4 per cent a year earlier. However, analyst estimates for Ebitda and margin were slightly higher, at Rs 109 crore and 15.3 per cent, respectively.

 

Segment-wise, revenue from the papad category grew by 26 per cent, while western snacks and packaged sweets saw increases of 23 per cent and 22 per cent, respectively. Ethnic snacks revenue rose by 10.5 per cent, contributing 63.8 per cent to overall revenue, while papads accounted for 4.1 per cent, and western snacks and packaged goods contributed 8.3 per cent and 17.5 per cent, respectively.

 

Managing Director Deepak Agarwal commented, “This quarter, we have witnessed a significant jump in revenue and profit margins. This surge in growth is due to the strong demand for ethnic snacks and packaged sweets, driven by the festive seasonality.”

 

Bikaji Foods International is the third largest ethnic snacks manufacturer in India, with an international presence selling Indian snacks and sweets. It is also the second fastest-growing company in the Indian organised snacks market. 

 

Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks, and other snacks, which primarily feature gift packs (assortments), frozen food, mathri, and cookies.

 

The company has a total market capitalisation of Rs 21,591.71 crore. Its shares are trading at a price to earnings multiple of 72.95  times and at an earning per share of Rs 11.46. 

 

At 11:14 AM, the stock price of the company pared most of its gains and was up 3.15 per cent at Rs 862.20 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.77 per cent to 79,450.42 level.