India, February 05, 2022 (GPN): Prataap Snacks Ltd. (PSL), (BSE- 540724), (NSE- DIAMONDYD) a leading Indian Snacks Food Company has announced its financial results for the quarter and nine months ended 31^st December 2021: 

In Q3 FY22, PSL reported:

o   Revenue of Rs. 3,849.5 million, registering a growth of 13.5% yoy

o   Operating EBITDA of Rs. 181.1 million, translating to a margin of 4.7%

o   PAT* stood at Rs. 47.4 million, higher by 4.1% yoy

o   EPS* (Diluted) stood at Rs. 2.02 per share

In 9M FY22, PSL reported:

o   Revenue of Rs. 10,351.6 million, registering a growth of 20.2% yoy

o   Operating EBITDA of Rs. 533.7 million, translating to a margin of 5.2%

o   PAT* improved to Rs. 180.7 million, higher by 157.0% yoy

o   EPS* (Diluted) stood at Rs. 7.70 per share 

* Excluding exceptional item due to loss by fire at Kolkata plant

Commenting on the Q3 & 9M FY22 performance, Mr. Amit Kumat – MD & CEO, Prataap Snacks Limited said;

“We continue to rebuild our growth trajectory and have delivered an improved performance against the backdrop of gradual normalisation in the overall consumption environment. Revenue growth was healthy at 14% YoY driven by improved volumes which have surpassed pre-covid levels across most of the products categories. During the quarter, we have received approval from the Government of India under PLI scheme for expansion in food processing under the ready-to-eat category. Our investment commitment aggregates to ~ Rs.105 crore, of which we have already invested  Rs. 15 crore with the balance to be invested between us and our contract manufacturing partners before March 2023. This will enhance our capacities and further strengthen our manufacturing footprint.

Operational challenges remain with palm oil prices remaining elevated during the quarter. In addition, there was a notable increase in the prices of laminates, which is a key raw material for our packaging process. Our cost optimisation programmes and implementation of the direct distribution model has enabled us to significantly mitigate the inflationary cost pressures. In Q3 FY22, our profitability was impacted by an exceptional expense of Rs. 14 crores, on account of loss caused by a fire at our Kolkata plant. The insurance claim is in process, and we expect to substantially recover this loss once the claim is settled in the coming quarters. 

We did witness some disruptions on account of increasing restrictions from the third wave of Covid, but we are now seeing an easing of restrictions in most states. With our focus on direct distribution and tele-calling aiding an increased and more efficient footprint we are well-positioned to grow topline while cost reduction initiatives are contributing to the structural improvement in margins. With a wide product range and robust balance sheet we remain confident of delivering sustainable growth over the medium term”.

About Prataap Snacks Ltd

Prataap Snacks Limited (PSL) is a leading Indian Snacks Food 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 and Avadh brands. It has recently launched a range of sweet snacks under the distinctive Rich Feast brand. PSL is focused on offering deep value to consumers through a variety of pack sizes at attractive price points. Its products are present across 27 states and 4 union territories in India, and it is one of the fastest growing companies in the organized snacks industry.

Headquartered in Indore, India;

PSL operates 15 manufacturing facilities of which 7 facilities (Indore 1&2, Assam 1&2, Bengaluru, Rajkot and Kolkata) are owned and 8 facilities (Kolkata, Bengaluru (2), Kashipur, Pune, Kanpur, Karnal and Hissar) are on a contract manufacturing basis. Its distribution network includes more than 240 super stockiest and more than 4,300 distributors allowing it extensive reach across the country. PSL has a wide presence that is equally spread in metro cities and urban clusters as well as in rural areas and Tier 2 and 3 cities and towns. Its products are available at independent grocers and small retail stores in the lanes and bylanes of its key markets and it is now building up its presence in supermarkets, hypermarkets and modern trade outlets.

Led by an able and experienced leadership and guided by an accomplished Board of Directors, PSL is a socially responsible corporate citizen with a strong focus on Corporate Governance and Internal controls. Following a successful IPO in September 2017, PSL is now listed on the Bombay Stock Exchange (BSE:540724) and National Stock Exchange (NSE:DIAMONDYD) in India.