Shares of Gopal Snacks Ltd dropped 5.81% to ₹302.15 on Tuesday following a sharp 70% decline in net profit for Q3 FY25. The company reported a net profit of Rs 5.3 crore, down from Rs 17.8 crore in the same period last year, mainly due to rising expenses. Despite profitability challenges, revenue from operations grew 7% year-on-year to Rs 393.5 crore, compared to Rs 367.5 crore in Q3 FY24. However, total expenses surged by 13% to Rs 387 crore, further squeezing margins.
The stock has a market capitalization of Rs 38.52 billion, with a price-to-earnings (P/E) ratio of 39.63 and a dividend yield of 0.36%. The share price moved within a day range of ₹309.10 – ₹309.10 and has a 52-week range of ₹301.05 – ₹520.00.
A major setback for Gopal Snacks came on December 11, 2024, when a fire broke out at its Rajkot I manufacturing facility. The company has informed the insurance provider about losses to property, plant, equipment, and stock, but the assessment of physical damage is still ongoing. As a result, no financial impact of the fire has been recorded for this quarter.
To offset production disruptions, Gopal Snacks has scaled up operations at its Modasa and Nagpur plants and partnered with third-party manufacturers to ensure a steady supply. Additionally, the company has commissioned a new manufacturing facility in Gondal, Rajkot, as part of its long-term strategy to restore lost production capacity.
The company faced higher costs of key raw materials, including palm oil, putting further pressure on margins. However, certain product segments remained strong, with the Wafers segment growing 48% YoY during Q3 FY25.
Despite challenges, Chairman and MD Bipin Hadvani stated that Gopal Snacks remains committed to innovation and market expansion. He emphasized that strategic investments and operational adjustments will help drive long-term growth.
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