Prataap Snacks tumbles on posting Q1 net loss of Rs 6 cr

Prataap Snacks declined 4.37% to Rs 567.90 after the company posted a consolidated net loss of Rs 5.96 crore in Q1 June 2020 as against a net profit of Rs 9.65 crore reported in Q1 June 2019.

Consolidated net sales for Q1 June 2020 stood at Rs 194.45 crore, falling nearly 41% from Rs 329 crore in the same period last year. The revenue was impacted due to operating constraints on account of nationwide lockdown.

Prataap Snacks registered a pre-tax loss of Rs 7.55 crore in quarter ending June 2020 as against pre-tax profit of Rs 12 crore in quarter ending June 2019. The company's posted an operating EBITDA of Rs 8.24 crore, translating to a margin of 4.2% which was impacted by operating deleverage.

 

Commenting on the Q1FY21 performance, Amit Kumat, MD of Prataap Snacks said; "It has been a quarter of unprecedented challenges due to the COVID-19 pandemic and consequent nationwide lockdown which has impacted operations in all geographies. Though we moved quickly to stabilise operations and ensure business continuity it took relatively longer to recommence operations at our mother plant, comprising over 50% of total capacity, since Indore was a designated hot spot and containment zone. However, our Guwahati plants and network of 3P facilities served us well enabling us to resume production at these locations in end of April itself. In this backdrop, we witnessed significant loss of production in April, a gradual ramp up in May and production returning to ~80% of Pre-Covid level in June. The operational challenges that emerged at start of lockdown have now abated and production has largely been stabilised towards the end of the quarter. The local lockdowns at various parts of the country are presenting some challenges. However, we continue to focus on bringing back the business at normalcy while positioning ourselves to capitalise on increased customer acceptance of alternate channels for go-to-market. There has been reduction in fixed costs to strengthen the business while variable costs, especially inputs such as palm oil, have remained stubbornly high. We have partially mitigated the impact through process re-engineering and cost optimisation and are working on additional measures to enhance efficiencies. In these unpredictable times, we continue to maintain a high quality of operations and a robust financial position."

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.

Powered by Capital Market - Live News