Prataap Snacks Limited — PPTs, 06-05-2025: Investor Presentation

1. Financial Highlights:

Prataap Snacks reported revenue of INR 170.8 Cr for FY25, up 6% YoY, with Q4 sales at INR 40.1 Cr (+3% YoY). Gross margin contracted to 27.2% from 33.4% due to inflation in palm oil (+42%) and potatoes (+31%). EBITDA plunged 66% to INR 4.9 Cr with margins at 2.9%, and Q4 EBITDA was INR 0.5 Cr (1.2% margin). PAT showed a loss of INR 14 Cr, impacted by higher depreciation and interest costs, yet the company generated positive cash profit and improved working capital. Closing cash and equivalents stood at INR 11.16 Cr, with a net cash position of INR 81.4 Cr. Capital expenditure reduced to INR 38.2 Cr.

2. Strategic Initiatives & Growth Drivers:

Focus on expanding distribution in high-command markets using data-driven sales tactics like sales force automation for range selling. The company aims to structurally improve margins via channel cost and logistics optimization supported by tech governance. Premium product expansion, along with growth in modern trade, quick commerce, and exports, is ongoing. Cost optimization through recipe modification and process reengineering is also in progress to offset raw material inflation.

3. Business Developments:

Consolidated manufacturing in the east and switched contract manufacturing from Bangalore to new third-party plants in Hazaribagh, Nalbari, and Gwalior. Capacity expansion in North India compensated for disrupted sales from a Jammu plant fire. Shareholding changes saw Peak XV Partners exit its 47% stake, acquired by Authum Investment & Infrastructure and Mahi Madhusudan Kela.

4. Market Position & Competitive Advantage:

One of the top 5 players in Western savory snacks with market leadership in rings and extruded snacks. Portfolio spans 150+ SKUs across extruded snacks, potato chips, namkeen, and sweets. Pan-India presence with 16 plants and direct distribution to ~2.5 million outlets offers scale and cost advantages. Strong adoption of technology in sales and operations underpins efficiency.

5. Investor Implications:

Revenue growth and positive cash profits amid margin pressure highlight resilience. Strategic moves in premiumization, distribution scale-up, and cost control support positive growth potential. Execution risks lie in inflation pass-through and margin recovery, but solid operational progress and a strong balance sheet bolster confidence in sustainable growth. The 10% dividend payout signals focus on shareholder returns.