Bikaji Foods shares nosedive 13% after Q3 net profit fall nearly 40% YoY; check details

Shares of the leading snacks manufacturer dropped as much as 12.97% to hit an intraday low of ₹638.55 apiece on the National Stock Exchange of India Ltd (NSE) on Friday. The stock rallied in six of the preceding seven sessions and gained a cumulative 14% during the period.

The stock is now down 9.6% in the past one month, but is still up over 16% for over the last one year period.

In a stock exchange notification issued after market hours on Thursday, Bikaji Foods announced that its standalone revenue from operations grew 14.5% year-on-year to ₹714.9 crore in Q3FY25. The volume growth was a tepid 3% year-on-year.

Bikaji Foods’ profit after tax (PAT) stood at ₹27.8 crore in the December quarter, down 39.6% compared to the same quarter a year ago.

The company’s operating profit, or earnings before interest, tax, depreciation, and amortisation (Ebitda), was down 26% YoY to ₹55.5 crore due to strong inflationary pressure and unfavourable raw material prices. The Ebitda margin was also down by a huge 425 basis points to 7.8% for Q3FY25 compared to the corresponding period of the preceding fiscal year.

Commenting on the Q3FY25 earnings, Bikaji Foods’ managing director Deepak Agarwal said, “Our company has delivered resilient performance across all categories, despite facing significant inflationary pressures and weak demand sentiments in the market. The traditional snacks category has been a major contributor, accounting for 62% of our total revenue, followed by the packaged sweets category, which contributed 18%.”

“Regarding commodity prices, we continue to experience year-on-year inflation in key inputs such as edible oil, potatoes, packaging material and other essential commodities. To offset these rising costs, we have implemented selective price increases,” Agarwal added.

Shares of Bikaji Foods International were trading 10.5% lower at ₹656 apiece on the NSE at 11:45 am.