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(06 May 2025, 13:01)

Prataap Snacks records net loss of nearly Rs 12 crore in Q4 as input prices surge

Prataap Snacks has reported a net loss of Rs 11.94 crore in Q4 FY25 as against a net profit of Rs 12.38 crore in Q4 FY24.


Net sales rose by 3.1% year-over-year (YoY) to Rs 398.53 crore during the period under review.

Total operating expenditure increased by 12.2% YoY to Rs 395.66 crore in Q4 FY25, due to higher raw material costs (up 18.6% YoY) and higher other expenses (up 3.4% YoY).

Profit before interest, depreciation and taxes dropped by 81% to Rs 7.21 crore in the fourth quarter from Rs 37.99 crore recorded in the same period last year.

The company posted a pre-tax loss of Rs 11.02 crore in Q4 FY25 as against a pre-tax profit of Rs 16.90 crore in Q4 FY24.

Prataap Snacks has recorded a net loss of Rs 34.27 crore in FY25 as against a net profit of Rs 53.12 crore in FY24. Net sales for FY25 were Rs 1,699.08 crore, up 5.5% YoY.

Amit Kumat, MD, Prataap Snacks, said: “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. Topline growth in Q4 would have been slightly higher, but for some lost sales due to the fire in our Jammu facility.

We have enhanced capacities at other facilities located in North India towards end of the quarter. 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.

During the year, we witnessed a sharp rise in input costs, especially palm oil and potatoes with other inputs also witnessing inflationary pressures. Our ongoing cost optimization initiatives delivered meaningful impact, easing some part of the margin pressures.

As input prices eased slightly towards the end of the fiscal, we reported improved profitability in Q4 over Q3. Despite a challenging year, we have delivered a positive cash profit and improved working capital further.

Looking ahead to FY26, our focus will be to drive sustainable profitable growth through sharper cost control, distribution expansion, and technology-led governance.”

Prataap Snacks (PSL) is a leading Indian snacks food company. It offers multiple variants of products across categories of potato chips, extruded snacks, namkeen (traditional Indian snacks) and cakes under the popular and vibrant Yellow Diamond and Avadh brands.

The scrip shed 0.91% to currently trade at Rs 1195.15 on the BSE.


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