Pratap Snacks -
Some highlights from Q4 and FY 24 results -
FY 24 outcomes -
Revenues - 1618 vs 1653 cr
EBITDA - 141 vs 63 cr ( margins @ 9 vs 4 pc - massive margin expansion !!! )
PAT - 53 vs 20 cr
Q4 outcomes -
Revenues - 388 vs 387 cr
EBITDA - 35 vs 19 cr ( margins - 9 vs 5 pc - massive margin expansion )
PAT - 12 vs 22 cr ( had some tax reversals in Q4 FY 23 )
Rural demand continues to be tepid vs the Urban demand
Margin expansion mainly led by - restructuring of distribution channel and margins, cost optimisations and process improvements
Focussing on sales force automation to further reduce costs and to improve decision making using data analytics
Increased share of Namkeens in the company’s portfolio is also margin accretive
New Jammu and Rajkot plants have been operationalised recently. Jammu facility has a revenue potential of 160 cr at full capacity
Hopeful of a rural revival which should aid company’s growth and margins. Seeing some green shoots in Q1. If they sustain, company aims to do a double digit revenue growth for FY 25
In FY 24, company’s Namkeens portfolio contributed 16 pc of sales and grew by 15 pc YoY. All other categories de-grew marginally
( Extruded snacks, Potato chips, Sweet snacks )
Company has recently been listed in D-Mart, Reliance retail. This should help aid margins as more of high volume packs are sold through modern retail channels
Company’s core target consumers are middle class and below - both in rural and urban markets (unlike for players like ITC, Pepsi etc who mainly target middle class and above )
Confident of maintaining EBITDA margins > 8 pc for FY 25 ( there may be Quarterly variations ). The ultimate aim is to go to double digit margins on a sustainable basis
Aim to realise 50 - 100 cr sales from export ( basically Middle East ) markets inside next 2 yrs
Out of 20 lakh outlets at which company’s products are available, namkeen is available at only 5 lakh outlets. Clearly, there is a lot of scope for growth in this segment
Company’s overall capacity utilisation is @ 55 odd pc. Not likely to incur any major Capex expenses over next 2 yrs
Potential of yearly sales from Reliance Retail + D Mart for the company is around Rs 50 cr / yr
Marketing and sales promotion spends for FY 24 @ 1.5 pc of sales
Disc: hold a tracking position, may add if rural recovery sustains, biased, not SEBI registered
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