In This Article:
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Revenue: INR 441 crores, a 2% increase year-on-year from INR 434 crores in Q2 last year.
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EBITDA: Reduced to INR 19.2 crores from INR 38 crores in Q2 last year.
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EBITDA Margin: Decreased to 4.3% from 8.8% in the previous year.
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Profit After Tax (PAT): INR 6.2 crores, down from INR 16.5 crores in Q2 last year.
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Operational Changes: Closed 3P operations in Bangalore; established a new facility in Jharkhand.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Prataap Snacks Ltd (NSE:DIAMONDYD) reported a 2% year-on-year increase in revenue, reaching INR 441 crores despite challenging macroeconomic conditions.
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The company achieved higher volumes in the INR 5 price point category, which constitutes over 80% of its total volume.
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Strong performance was noted in the pellet snacks category, with nationwide expansion under the Yellow Diamond brand.
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Prataap Snacks Ltd is focusing on premiumization with the introduction of the Seven Diamond brand, featuring premium snacks like protein puffs and peanut butter cups.
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The company has initiated exports and received positive responses from international trade fairs, aligning with its long-term growth objectives.
Negative Points
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EBITDA decreased significantly from INR 38 crores in Q2 last year to INR 19.2 crores, with margins dropping from 8.8% to 4.3% due to inflationary pressures.
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Key input costs, including potatoes, wheat, and gram, have seen steep inflation, impacting profitability.
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The company faces challenges with palm oil price increases, which are expected to further impact costs in Q3.
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Despite efforts to optimize costs, freight expenses remain higher compared to competitors, affecting overall cost efficiency.
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The transition to a direct distribution model has led to some market disruptions, particularly in regions with smaller distributors.
Q & A Highlights
Q: Can you provide more details about the "better for you" segment and its future growth prospects? A: Amit Kumat, CEO, explained that the "better for you" segment focuses on healthier snacks like protein puffs and peanut butter varieties. The company is leveraging trends towards guilt-free snacking and expects this segment to significantly contribute to their premiumization strategy over the next 18 to 24 months.
Q: Is there a seasonal trend in your sales, particularly in Q2? A: Amit Kumat, CEO, noted that Q2 typically sees higher sales due to reduced snack consumption in summer and increased availability of potatoes in Q3. This seasonal pattern has been consistent over the years.