Prataap Snacks (DIAMONDYD) — concall transcript

📢 Key Event
Prataap Snacks reports 2% revenue growth but EBITDA margin halves due to potato inflation and freight pressures.

🔄 What Changed
EBITDA margin fell to 4.3% from 8.8% YoY; PAT dropped to Rs. 6.2 crore from Rs. 16.5 crore; freight costs remain 6.5% of revenue; capacity utilization stuck at 55-60%.

🔮 What's Next
Targeting double-digit EBITDA margins by FY26 through 4-5% cost savings over 1.5 years; expects margin improvement as potato prices cool mid-December; plans to increase A&P spend if inflation eases; aims to grow Namkeen segment share north of 20% in 2-3 years.

💡 Investor Takeaway
Shareholders face near-term margin pressure from inflation but management is executing cost controls and strategic investments to restore profitability and long-term growth.

Prataap Snacks reported a 2% YoY revenue rise to Rs. 441 crore in Q2 FY25, but EBITDA margin collapsed to 4.3% from 8.8% a year ago due to 60-65% potato price inflation and high freight costs, driving PAT down 62% to Rs. 6.2 crore. Management highlighted premiumization via 'Seven Diamond' Rs. 30 packs, export expansion, and quick commerce growth as key volume drivers, while implementing cost-saving measures including logistics optimization targeting 0.5-1% savings and overhead reductions of 4-5%. CAPEX of Rs. 20-25 crore is nearing completion with solar plant investment of Rs. 8-9 crore, and capacity utilization remains constrained at 55-60% despite plant rationalization.

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About Prataap Snacks Ltd (DIAMONDYD)

Fast Moving Consumer Goods · FMCG · Listed on BSE

Market Cap: ₹2,762.5 Cr P/E: 136.1 ROE: 2.9% ROCE: 1.2% Div Yield: 0.04%

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🔥 Also filed on 30 September 2024

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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