Q2 2024 Prataap Snacks Ltd Earnings Call Transcript
Key Points
- Prataap Snacks Ltd (BOM:540724) reported a 12% increase in sales on a quarter-to-quarter basis despite challenging macroeconomic conditions.
- The company achieved its highest ever quarterly EBITDA of INR 38 crores, demonstrating improved profitability.
- EBITDA margin improved to 8.8% in Q2 FY '24, marking a 400 basis points increase year-on-year.
- The Namkeen category showed strong growth, reflecting the success of strategic initiatives to increase its revenue share.
- Prataap Snacks Ltd (BOM:540724) maintained a strong balance sheet with an improved cash position of INR 97.5 crores and continued to be debt-free on a net basis.
- Sales declined by 4.2% year-on-year in Q2 FY '24, indicating challenges in maintaining top-line growth.
- The rural market and lower-income urban segments faced significant demand pressure due to inflation, impacting overall sales.
- Increased competitive intensity from localized players has been noted, affecting market share and sales growth.
- The company is not confident about achieving the PLI incentives for the current fiscal year due to the challenging demand environment.
- The J&K plant's commercial operations have been delayed, now expected to start by January 2024, which may impact short-term growth plans.
Ladies and gentlemen, good day, and welcome to Prataap Snacks Quarter 2 Investor Conference Call hosted by Systematix Institutional Equities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Himanshu Nayyar from Systematix Institutional Equities. Thank you, and over to you, sir.
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Thanks, Rohit. Good afternoon, everyone. I welcome all the participants on behalf of Systematix Institutional Equities team and would like to thank the management of Prataap Snacks for giving us the opportunity to host them. We have with us Mr. Amit Kumat, MD and CEO; and Mr. Sumit Sharma, CFO.
The company delivered a resilient performance in second quarter in a challenging demand environment with continued improvement in profitability. We would start with opening remarks from the management and then take questions from all the participants here. Over to you, sir.
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