Prataap Snacks Limited , known for its Yellow Diamond brand of snacks, has reported a significant decline in net profit for the first quarter, while also approving an employee stock option allotment.

Financial Performance

The Indore-based snack food company reported a net profit of Rs 69.13 lakh for the quarter ended June 30, marking a substantial decrease from Rs 943.91 lakh in the same quarter of the previous year. This represents a year-on-year decline of approximately 92.7% in net profit.

Revenue from operations also saw a slight dip, decreasing to Rs 40,894.18 lakh from Rs 41,912.56 lakh year-over-year, reflecting a 2.4% decline.

The company's financial results for the quarter are summarized in the table below:

The total comprehensive income for the quarter stood at Rs 65.77 lakh, compared to Rs 896.53 lakh in the corresponding quarter of the previous year.

Operational Highlights

Despite the decline in profits, Prataap Snacks maintained its operational efficiency. The cost of materials consumed increased marginally to Rs 28,867.35 lakh from Rs 28,834.05 lakh in the same quarter last year. Employee benefits expenses saw a slight decrease to Rs 1,911.38 lakh from Rs 1,947.40 lakh year-over-year.

Corporate Actions

In a separate development, the company's Board of Directors approved the allotment of 26,587 equity shares with a face value of Rs 5 each to eligible employees under the Employee Stock Appreciation Rights Plan 2018. This move is aimed at aligning employee interests with those of the shareholders and fostering a sense of ownership among the workforce.

Dividend Announcement

The Board has recommended a final dividend of 10% (Rs 0.50 per equity share) for the previous financial year, subject to shareholder approval at the Annual General Meeting scheduled for August 6.

Management Commentary

While the company did not provide specific management commentary in the released statement, the focus appears to be on maintaining operational stability and rewarding both employees and shareholders despite the challenging quarter.

Prataap Snacks continues to operate in the competitive snack food segment, with 'Snacks Food' remaining its only reportable segment as per Indian Accounting Standard 108.

Investors and stakeholders will be keenly watching how the company navigates the current financial headwinds and whether it can return to its previous levels of profitability in the coming quarters.

Prataap Snacks Limited , a leading Indian snack food company, has released its financial results for the fourth quarter and full fiscal year ended March 31, 2025, revealing a mixed performance amidst challenging market conditions.

Q4 FY25 Performance

For the quarter ended March 31, 2025, Prataap Snacks reported:

• Revenue from operations of ₹4,006.00 million, a 3% increase year-over-year
• Operating EBITDA of ₹49.00 million
• Net loss of ₹119.00 million, a slight improvement from a loss of ₹123.80 million in the same quarter last year

The company's performance in Q4 FY25 was impacted by various factors, including inflationary pressures and weak consumption trends, particularly in the value segment of the snack food market.

Full Year FY25 Results

For the fiscal year 2024-25, Prataap Snacks achieved:

• Revenue from operations of ₹17,077.00 million, a 6% increase year-over-year
• Operating EBITDA of ₹487.00 million
• Net loss of ₹140.00 million, after accounting for a post-tax exceptional loss of ₹202.00 million

Dividend Announcement

Despite the challenging year, the Board of Directors has recommended a dividend of ₹0.50 per share (10% on face value of ₹5.00 each) for FY25, subject to shareholders' approval at the upcoming Annual General Meeting.

Management Commentary

Amit Kumat, Managing Director of Prataap Snacks, commented on the results: "In FY25, we witnessed sustained inflationary pressures and weak consumption trends which have impacted demand for consumer products. The impact is more visible in the value segment. Given this backdrop, we are pleased to report positive revenue growth of 6% YoY for FY25 and 3% YoY in Q4FY25."

He further added, "Our sharpened focus on core markets, data-driven sales strategies, and expanded distribution have been key enablers of the topline growth. In addition to witnessing encouraging trends in market share, we are pleased that our leadership in extruded snacks remains intact."

Operational Highlights

• The company faced sharp rises in input costs, especially for palm oil and potatoes, which impacted profitability.
• Cost optimization initiatives helped ease some margin pressures.
• Prataap Snacks maintains a robust financial position with healthy levels of free cash.
• The company has enhanced capacities at facilities in North India to compensate for lost sales due to a fire incident at its Jammu facility.

Future Outlook

Looking ahead to FY26, Prataap Snacks plans to focus on:

1. Driving sustainable profitable growth
2. Implementing sharper cost control measures
3. Expanding distribution networks
4. Enhancing technology-led governance

The management expressed confidence in their ability to deliver enhanced value to stakeholders in the coming years, building on the strong foundation laid in FY25 and their clear strategic roadmap.

Exceptional Items

The company reported several exceptional items during the year:

1. A fire at the Jammu plant on December 30, 2024, resulting in a financial loss of ₹3,433.53 million.
2. Receipt of an insurance claim of ₹892.81 million for a previous fire incident at the Howrah plant.
3. A fire accident at a co-manufacturing plant in Hoogly, West Bengal, causing a loss of ₹95.91 million.

These events significantly impacted the company's financial results for the year.

Conclusion

While Prataap Snacks faced numerous challenges in FY25, the company has shown resilience by maintaining revenue growth and implementing strategic initiatives to strengthen its market position. The focus on cost optimization, distribution expansion, and technology-driven operations is expected to support the company's efforts towards profitability in the coming fiscal year.