Prataap Snacks, Gopal Snacks, and Bikaji Foods shares up 5% after GST rate cut on namkeen

Prataap Snacks, the company behind Yellow Diamond chips, is trading 3.4% higher at ₹842 apiece on the National Stock Exchange (NSE). The scrip jumped as high as 7.7% in the intraday trade.

Finance Minister Nirmala Sitharaman on Monday announced that the Centre, at the 54th GST Council meeting, decided to reduce the GST rate on Namkeen from 18% to 12%.

"The GST rate of extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 to be reduced from 18% to 12% at par with namkeens, bhujia, mixture, chabena (pre-packaged and labelled) and similar edible preparations in ready for consumption form which are classifiable under HS 2106 90," the Ministry of Finance said in a statement.

It added, "To also clarify that the reduced GST rate of 12% on extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 is applicable prospectively."

Prataap Snacks' revenue zoomed 8.67% to ₹421 crore for the quarter ended June 2024, compared to ₹387 crore in Q1 FY24. The net profit narrowed to ₹9.4 crore, compared to ₹13.4 crore in the previous year's similar quarter.

Gopal Snacks witnessed an 11.25% growth in revenue at ₹354 crore for the quarter ended June 2024 as compared to ₹318 crore during the year-ago period. The net profit declined to ₹24.3 crore as against ₹28.3 crore in Q1 FY24.

Bikaji Foods performed well on all fronts. Revenue jumped 17% year-on-year to ₹561 crore in the April-June quarter of the current fiscal as against ₹477 crore in Q1 FY24. Net profit rose 40% year-on-year to ₹60 crore vs. ₹43.2 crore a year back.