Gopal Snacks share price falls over 8% as Q3 net profit declines 70% to ₹5.3 crore

The stock fell 8.2% to ₹294.5 per share on the National Stock Exchange (NSE) at 9:48 am.

Gopal Snacks Q3 results

Gopal Snacks' net profit declined 70.3% to ₹5.3 crore in the quarter ended December 2024. In the year-ago period, the post-tax profit was ₹17.9 crore.

Revenue from operations increased 7.1% to ₹393.6 crore in the quarter under review, compared to ₹367.6 crore a year back.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 56.1% to ₹15.5 crore in Q3 FY25 as against ₹35.3 crore in the corresponding period last year. EBITA margin was at 3.9% vs 9.6% in the same period last year.

The gross profit stood at ₹84.2 crore in the latest October-December quarter, down 12.7% from ₹96.5 crore in the same period a year ago.

Revenues during the quarter were impacted by a fire at the Rajkot facility. The company said in an exchange filing that the assets were insured and it has initiated the process of filing the insurance claim.

The Rajkot facility remains temporarily closed, and the namkeen maker has scaled up production at its Nagpur and Modasa plants to mitigate the operational impact.

Furthermore, the company has partnered with third-party manufacturers for uninterrupted product supply.

The increase in prices of key raw materials like palm oil and high operational expenses due to the fire incident led to pressure on margins, the company said.

Bipinbhai Hadvani, Chairman and Managing Director of Gopal Snacks, said, "The challenges of Q3 FY2025 have reaffirmed our belief in the importance of resilience, adaptability, and long-term vision. Our immediate priorities include scaling operations at the Gondal facility, phasing out third-party manufacturing and to fully restore the affected supplies by the end of this fiscal year."

"Our long-term goals remain unchanged: to enhance market leadership, deliver innovative and high-quality products, and generate sustainable value for all stakeholders," he added.