Prataap Snacks fell 3.47% to Rs 720 after the company's consolidated net profit declined by 17.6% to Rs 4.55 crore on a 6.8% fall in net sales to Rs 334.33 crore in Q3 FY21 over Q3 FY20.
In the third quarter, operating EBITDA was at Rs 17.56 crore, translating to a margin of 5.2%. Profit before tax in Q3 December 2020 stood at Rs 5.37 crore, down by 24.6% from Rs 7.12 crore in Q3 December 2019. Current tax expense during the quarter increased by 43.3% year-on-year (YoY) to Rs 1.39 crore.
Commenting on the Q3 FY21 performance, Amit Kumat - MD, Prataap Snacks, said; "I am pleased to share that we have delivered an encouraging performance during Q3 with growth on sequential basis despite seasonality in the quarter. This is a clear indicator of demand picking up in our key markets. We continue to explore alternate channels to expand our market reach even as the distribution network steadily rebuilds momentum.
On the operational front, the price of palm oil has consistently risen in recent quarters and remains unusually elevated, thereby adversely impacting the margin. We have partially mitigated the impact through on-going process re-engineering and cost optimization initiatives. We are also implementing a restructuring of our distribution network, starting with select markets, which will lead to an optimised structure and is expected to positively impact our margin performance over the medium term.
With the economy regaining momentum and trains, schools and institutions set to re-open in a phased manner, we expect a further uptick in demand. We are also working on introducing newer products to better address regional tastes and preferences and elevate our presence as a preferred national brand."
Prataap Snacks is a leading Indian snack foods company. It offers multiple variants of products across categories of potato chips, extruded snacks, namkeen under the popular and vibrant Yellow Diamond brand. It has recently launched a range of sweet snacks under the distinctive Rich Feast brand. Its products are present across 27 states in India.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
