Prataap Snacks Ltd. shares dropped 4% after the company reported a net loss of ₹38 crore for the third quarter ending December 31, 2024. This marks a significant decline compared to the net profit of ₹10.8 crore posted during the same period last year. As of 9:23 AM, Prataap Snacks shares were trading 3.42% lower at Rs 979.40.
Despite the net loss, the company saw a 9% increase in revenue from operations, reaching ₹442.7 crore in Q3 FY25, up from ₹406.2 crore in the corresponding quarter of the previous fiscal. However, Prataap Snacks reported an operating EBITDA loss of ₹5.42 crore during the quarter, along with a diluted EPS of ₹6.17 per share.
For the nine months of FY25, Prataap Snacks achieved a revenue of ₹1,300.56 crore, with an operating EBITDA of ₹43.77 crore. However, the company recorded a cumulative net loss of ₹4.62 crore and a diluted EPS of ₹1.94 per share for the period.
The financial results were also impacted by exceptional losses, with a post-tax exceptional loss of ₹23.2 crore in Q3 FY25 and ₹17.72 crore for the nine months ending FY25.
Managing Director Amit Kumat attributed the revenue growth to rural market demand and initiatives to optimize sales efficiency. The company also began exports in Q3, shipping its first batches overseas.
However, inflation and higher raw material costs, especially for palm oil and potatoes, impacted profitability. The reinstatement of import duties on crude and refined palm oil further exacerbated costs, said Kumat.
Despite challenges in urban markets, the company remains focused on driving growth through new market expansions and optimizing operations at existing touchpoints.
Prataap Snacks shares opened at ₹952.25 today, reaching a high of ₹984.85 and touching the same low as its opening price. The stock remains below its 52-week high of ₹1,344.65 but well above its 52-week low of ₹746.70.
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