Prataap Snacks Ltd (BOM:540724)
₹ 1,195.05 +15.25 (+1.29%) Market Cap: 28.60 Bil Enterprise Value: 28.02 Bil PE Ratio: 248.45 PB Ratio: 4.08 GF Score: 79/100

Q2 2025 Prataap Snacks Ltd Earnings Call Transcript

Nov 12, 2024 / 10:00AM GMT
Release Date Price: ₹1065.75 (+0.89%)

Key Points

Positve
  • Prataap Snacks Ltd (NSE:DIAMONDYD) reported a 2% year-on-year increase in revenue, reaching INR 441 crores despite challenging macroeconomic conditions.
  • The company achieved higher volumes in the INR 5 price point category, which constitutes over 80% of its total volume.
  • Strong performance was noted in the pellet snacks category, with nationwide expansion under the Yellow Diamond brand.
  • Prataap Snacks Ltd is focusing on premiumization with the introduction of the Seven Diamond brand, featuring premium snacks like protein puffs and peanut butter cups.
  • The company has initiated exports and received positive responses from international trade fairs, aligning with its long-term growth objectives.
Negative
  • EBITDA decreased significantly from INR 38 crores in Q2 last year to INR 19.2 crores, with margins dropping from 8.8% to 4.3% due to inflationary pressures.
  • Key input costs, including potatoes, wheat, and gram, have seen steep inflation, impacting profitability.
  • The company faces challenges with palm oil price increases, which are expected to further impact costs in Q3.
  • Despite efforts to optimize costs, freight expenses remain higher compared to competitors, affecting overall cost efficiency.
  • The transition to a direct distribution model has led to some market disruptions, particularly in regions with smaller distributors.
Operator

Ladies and gentlemen, good day. And welcome to the Prataap Snacks Ltd earnings conference call. (Operator Instruction) Please note that this conference is being recorded. I now hand the conference over to Mr Mit Shah from CDR India. Thank you and over to you Mr Shah.

Ahmed Chaudhary
- National Sales Head

Thank you. Hello, everyone. Welcome to Prataap Snacks Ltd Q2 and H1 F25 earnings conference call we have with us Mr Amit Kumat managing director and CEO Mr Sumit Sharma CFO and Mr Ahmed Chaudhary National Sales Head at the [top].

Before we begin this call, I'd like to point out that certain statements made in today's call could be forward-looking in nature and a statement to this effect has been included in the earnings presentation shared with you earlier. I'd like to hand over the call to Mr Amit Kumar for opening marks. Thank you and over to you, sir.

Amit Kumat
Prataap Snacks Ltd - Chief Executive Officer, Managing Director, Executive Director

Thank you. Mit Good afternoon. Everyone and thank you for

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