Bikaji Foods’ Q1FY25 revenue from operations increased by 18.7% year-over-year (YoY) to Rs. 5,722 million, driven by a substantial volume growth of 16.2% YoY.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a significant increase of 39.2% YoY, reaching Rs. 916 million. This growth was accompanied by an improved EBITDA margin of 16.0%, reflecting the company’s enhanced operational efficiency. The Profit After Tax (PAT) also surged by 40.2% YoY, amounting to Rs. 581 million.
Segment Performance
Bikaji Foods’ diverse product portfolio delivered robust performance across all segments:
- Ethnic Snacks: Revenue grew by 16.0% YoY, contributing 75.3% to the overall revenue. This segment remains the cornerstone of Bikaji’s business, showcasing strong consumer demand for traditional snacks.
- Packaged Sweets: Revenue increased by 12.3% YoY, accounting for 7.9% of the overall revenue. The growth in this segment highlights the company’s expanding footprint in the packaged sweets market.
- Western Snacks: This segment experienced the highest growth rate, with revenue rising by 26.0% YoY, making up 9.8% of the overall revenue. The strong performance in western snacks underscores the company’s successful diversification efforts.
- Papad: Revenue grew by 14.0% YoY, contributing 6.1% to the overall revenue. The steady growth in this segment reflects the sustained consumer preference for traditional Indian food products.
Deepak Agarwal, Managing Director of Bikaji Foods International Limited, expressed his satisfaction with the company’s performance, stating, “This quarter our company continued to demonstrate strong growth and financial resilience. We are pleased to report a 17.1% value growth in the snacks category (traditional and western) with underlying volume growth of 18.5%. Traditional snacks, which are our core strength, delivered a value growth of 16.0%, while western snacks showed a healthy value growth of 26.0%.”
He further highlighted the company’s strategic initiatives, saying, “Our EBITDA for the quarter improved by 240 basis points year-over-year, reaching Rs. 916 million, reflecting our commitment to operational efficiency and disciplined cost management. While raw material costs increased during the quarter, proactive hedging strategies mitigated the impact on our margins.”
Strategic Outlook
Agarwal emphasized Bikaji Foods’ confidence in navigating challenges and capitalizing on opportunities as they progress towards their strategic objectives. “Overall, this quarter marked substantial achievements in volume growth and EBITDA performance. We are confident in our ability to navigate challenges and capitalize on opportunities as we progress towards our strategic objectives,” he added.
