Prataap Snacks hits new high as Q2 profit more than doubles
The stock is trading at its highest level since listing on October 5, appreciated 50% against issue price of Rs 938 per share. The S&P BSE Sensex was up 5% during the same period.
Income from operations during the quarter under review increased by 11% at Rs 262 crore against Rs 235 crore in the corresponding quarter previous year.
For the first half (April-September) of the current financial year 2016-17 (FY18), the company reported 219% jump in consolidated net profit at Rs 22.68 crore against Rs 7.10 crore in the same period last fiscal. Ebitda (earnings before interest, taxes, depreciation and amortization) margin expanded from 4.68% to 9% during the period.
Commenting on the H1 FY18 performance, Amit Kumat – MD & CEO, Prataap Snacks,” In H1FY18, despite temporary headwinds due to GST implementation, the company has delivered a 15% growth in revenues.
The company is in the process of commercialising its entry into sweet snacks, through the launch of Yum-pie, which will complement offerings in the savoury segment. Currently, the company is navigating the potato supply crunch and increased duties on inputs (palm oil), but we are hopeful of a recovery to end the financial year on track with our expectations, added Amit Kumat.
In November, 2017 Prataap Snacks launched and commenced commercial production of Yum-Pie, a range of chocolate based confectionary snacks, under the brand name Rich Feast. The production of Yum-Pie is being undertaken under PSL’s wholly owned subsidiary Pure N Sure Food Bites Private Limited.
At 01:47 PM; the stock was up 4% at Rs 1,328 on the BSE as compared to 0.14% decline in the S&P BSE Sensex. A combined 243,919 shares changed hands on the counter on the BSE and NSE so far.