Prataap Snacks Q1 Review - Strategic Transformations On Track: Systematix
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Systematix Research Report
Prataap Snacks Ltd.'s Q1 FY22 sales grew 43% YoY (versus our estimate of 40% growth) to Rs 2.8 billion, despite the closure of schools and colleges and subdued travel activities due to the second wave of Covid-19.
Uninterrupted supplies to trade channels and an expanded tele-calling network aided growth.
The impact of a ~65% YoY inflation in palm oil (~14% of sales) on its margins was mitigated through process re-engineering and cost-optimisation.
Prataap Snacks' gross margin contracted 422 basis points to 23.9% while Ebitda margin contracted 25 bps to 4% (versus our estimate of 2%).
The new plant in Kolkata will serve as a hub for the Eastern region and also optimise distribution.
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