Prataap Snacks faced significant pressure in the stock market on Tuesday, January 28, after the company reported a net loss of ₹38 crore for the December quarter FY25. In the morning session, the snack maker’s shares fell by over 4% on both the BSE and NSE. By 10 AM, the stock was trading at ₹972 on BSE, marking a loss of 4.26%, while on the NSE, it was down by 4.73%, priced at ₹966.10.
The company’s Q3 FY25 results showed a significant turnaround, with a net loss of ₹37.92 crore, compared to a net profit of ₹10.79 crore in the same quarter last fiscal year. Despite the loss, Prataap Snacks reported a 9% increase in revenue from operations, amounting to ₹442.7 crore for the quarter, up from ₹406.25 crore in Q3 FY24. Over the first nine months of FY25, the company saw a 6.3% rise in revenue compared to the previous year.
Amit Kumat, the managing director at Prataap Snacks, mentioned that the company saw improved demand in rural markets, even though urban markets remained subdued. The sales growth during the quarter was driven by the expansion into new touchpoints and enhanced sales efforts at existing territories. Additionally, the company officially commenced exports in Q3, shipping initial batches of products.
Despite the revenue growth, Prataap Snacks reported a disappointing operating EBITDA of only ₹5.42 crore during the quarter. The company also noted that it had incurred a post-tax exceptional loss of ₹23.2 crore in Q3 and ₹17.72 crore over the first nine months of FY25. These exceptional losses contributed to the overall financial downturn.
In the nine-month period, Prataap Snacks posted a net loss of ₹4.62 crore, with a diluted EPS of ₹1.94 per share, signaling a challenging year so far.
Looking ahead, Amit Kumat emphasized that the company’s focus would be on driving topline growth through initiatives such as distribution expansion, range selling, and sales force automation, particularly in regions where they already have a strong market share. To address margin concerns, the company aims to optimize costs, introduce new products for premiumization, and focus on export growth. Kumat expressed confidence that these measures would help the company realize accretive value in the coming quarters.
Despite the current challenges, Prataap Snacks is focused on adjusting its strategies to improve performance in the remainder of FY25 and beyond, with hopes of turning around its financial position.
