Following the third biggest producer of ethnic snacks reporting a 43.5% year-over-year (YoY) increase in consolidated profit after tax at Rs 40.92 crore for the September quarter, shares of Bikaji Foods International increased 5% in Wednesday’s trading.
In response to the news, the stock increased 4.99 percent to reach a high of Rs 415.30 on the BSE. With this, the stock has increased 38% from the Rs 300 IPO issue price. In November, the stock debuted on the market.
According to a BSE report by Bikaji Foods, the company’s sales for the quarter increased 32% to Rs 577 crore from Rs 437.68 crore in the same period last year. In comparison to the same quarter last year, the PAR margin for the current quarter was 7.1%.
Thanks to lower material costs, efficiency initiatives, and cost-management measures, the ebitda margin for the quarter was 11.1 percent as opposed to 10.4 percent, according to Bikaji’s BSE report.
Deepak Agarwal, the company’s managing director, reported that sales both sequentially and annually increased in a healthy and favourable manner.
“Our top line grew by 37.7% in the most recent quarter compared to the one before, and by the same amount (31.8%) compared to the same quarter last year. In comparison to the prior year, we had solid double-digit increase in each category. We established a CSD channel in the most recent quarter and we have continued to grow our distribution network “explained he.
According to Agarwal, his company has noticed a drop in the cost of essential raw materials like edible oil and packing supplies, which has helped the business become more profitable.
The demand for western snacks and Namkeens will be met thanks to the commercial manufacturing that two of our CMUs, Hamuman Agro Food Private Limited and Raadhey Namkeen Private Limited, have begun.
He added that his company will carefully work on the RTM strategy for the distribution growth and that his focus would be on increasing the distribution network to reach a deeper distribution model.
Here are Bikaji Foods Q2 results