Publicly-listed Prataap Snacks posts solid growth

14-Dec-2017 - Last updated on 14-Dec-2017 at 15:09 GMT

Prataap Snacks has posted good growth for the first half of FY2017. Pic: Prataap Snacks

Indian snack foods producer Prataap Snacks (PSL) has posted 15% revenue growth for the first half of 2018.

The Yellow Diamond chip producer launched its IPO in September and was listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) at Rs 938 ($14.60) per share.

Amit Kumat, MD and CEO of PSL, said the company delivered 15% revenue growth, despite temporary headwinds due to goods and sales tax (GST) implementation.

The company reported a 143% jump in its Q2 net profit at Rs 12.9 crore ($20m), versus Rs 5.3 crore ($8.2m) in the same quarter last year.

Revenue was up 10% at Rs 263 crore ($4m), EBITDA was up 46% at Rs 26.1 crore ($4m) and margins were up 550 bps at 9.9% (from 4%) for the same period.

Salty, spicy and now sweet…

PSL produces potato-based snacks, extruded snacks and namkeen (Indian snacks), and ventured into the noodles market last year.

“We are in the process of commercialising our entry into sweet snacks, through the launch of Yum-pie, which will complement our offerings in the savoury segment,” said Kumat.

PSL launched Yum-Pie, a range of chocolate-based confectionery snacks under the brand name Rich Feast, in November. Production of Yum-Pie is being undertaken under PSL’s wholly owned subsidiary, Pure N Sure Food Bites.

“Currently, the company is navigating the potato supply crunch and increased duties on inputs (palm oil), but we are hopeful of a recovery to end the financial year on track with our expectations,” added Kumat.