Prataap Snacks Limited — Updates, 11-11-2024: Press Release

Prataap Snacks Limited (PSL) reported solid performance for Q2 FY25, with revenue from operations reaching Rs. 4,411 million and an EBITDA of Rs. 192 million, reflecting a margin of 4.3%. Year-on-year, H1 FY25 revenue grew by 5% to Rs. 8,625 million, while EBITDA totaled Rs. 492 million, with a margin of 5.7%. Despite facing significant inflationary pressures, particularly in key ingredient costs, PSL managed to maintain volumes, especially in the Rs. 5 pack category. The company has initiated exports and expanded distribution through quick commerce platforms, expecting volume growth momentum, aided by improving rural demand as per positive seasonality trends anticipated for the second half.

In a significant ownership shift, Peak XV Partners divested its 47% stake, realizing substantial returns, now held by Authum Group and Ms. Mahi Madhusudhan Kela, who are creating a collaborative partnership aimed at further enhancing shareholder value. Overall, PSL’s strategic focus on cost-reduction initiatives and growth avenues positions it favorably for future gains, warranting investor attention.