Prataap Snacks share price declines over 4% as Q3 loss widens

Shares of Prataap Snacks on Tuesday opened under pressure after the company reported a net loss of ₹38 crore in its December quarter FY25.

During the intraday trade, on both the benchmark indices, Prataap Snacks declined over 4% on January 28. At 10 AM, the scrip was trading at ₹972 on BSE, losing 4.26%. On NSE, the stock was down 4.73% at ₹966.10.

The snack-making company saw its net loss widened to ₹37.92 crore during the October-December quarter as against net profit of ₹10.79 crore during the same quarter last fiscal year.

However, the company reported a 9% increase in revenue from operations at ₹442.7 crore during the third quarter as against ₹406.25 crore during the same quarter corresponding fiscal. Prataap Snacks saw a 6.3% rise in revenue from operations in nine months of FY25 year-on-year basis.

“There has been improved demand in rural markets, even as urban markets remained subdued. Sales growth has been driven by a combination of an expansion into new touchpoints as well as initiatives to optimise sales efforts at existing touchpoints and territories through enhanced efficiencies. Additionally, we formally commenced exports in Q3 with the shipment of initial batches,” said Amit Kumat, managing director at Pratap Snacks.

The company’s operating EBITDA stood at ₹5.42 crore during the reporting qaurter.

However, the snack maker in nine months recorded a net loss of ₹4.62 crore and a diluted EPS of ₹1.94 per share. The results include a post-tax exceptional loss of ₹23.2 crore for Q3 FY25 and ₹17.72 crore for nine months FY25.

“Our focus will be to drive topline growth through implementation of measures such as distribution expansion, range selling, and sales force automation with emphasis on regions where we enjoy a strong market share. We are undertaking efforts to enrich margins in a structural manner by aggressively optimising costs, introducing products to aid premiumization, and driving growth in exports. We are confident that the combination of these measures will help us to realise accretive value in the quarters ahead,” Kumar further said in a statement.