FNB News - Prataap Snacks registers y-o-y growth of 18.7% in Q3 FY19 and 9M FY19

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ANALYSIS

Prataap Snacks registers y-o-y growth of 18.7% in Q3 FY19 and 9M FY19

Monday, 11 February, 2019, 16 : 00 PM [IST]

Our Bureau, Mumbai

Prataap Snacks Ltd (PSL), one of India’s leading snack foods companies, registered a revenue worth Rs 3,082.5 million and delivered double-digit growth of 18.7 per cent y-o-y (year-on-year) in the third quarter and nine months ended December 31, 2018 (Q3 FY19 and 9M FY19, respectively).

In Q3 FY19, PSL reported operating EBITDA (earnings before interest, taxes, depreciation and amortisation) worth Rs 220.7 million (translating to a margin of 7.2 per cent); PAT (profit after tax) worth Rs 80.7 million, and earnings per share (EPS) (diluted) worth Rs 3.44 per share.

In 9MFY19, PSL reported a total revenue of Rs 8,640.8 million, higher by 16.1 per cent y-o-y; operating EBITDA worth Rs 609.3 million (translating to a margin of 7.1 per cent); PAT worth Rs 297.2 million at a margin of 3.4 per cent of the total revenue, and EPS (diluted) was Rs 12.7 per share on an enlarged capital base due to the IPO (initial public offer). The figures had been adjusted for depreciation post-acquisition of Avadh Snacks.

PAT and EPS were after adjusting for enhanced depreciation on intangible assets created upon acquisition of Avadh Snacks.

Commenting on the Q3 and 9MFY19 performance, Amit Kumat, managing director, PSL, said, “With the Avadh Snacks acquisition, we have delivered a positive performance in the quarter, and our consolidated revenues for 9M have grown 16.1 per cent.”

“On a stand-alone basis, the performance was muted due to capacity constraints and from headwinds faced in some of our product markets. Production capacity is being enhanced and we expect a positive uptick starting Q1 next year, as incremental volumes come into the market,” he added.

“We are excited about the acceptance and progress of products in the sweet snacks (RichFeast) category, and will be undertaking incremental investments towards additional production lines,” Kumat said.

“Overall, the headwinds arising from crude inflation and higher cost of raw materials were mitigated through multiple initiatives which helped us to arrest the margin decline,” he added.