Prataap Snacks Q4 Review - Long-Term Strategic Initiatives To Drive Sales, Margins: Systematix

Potato chips are sorted for packaging after being seasoned at a production facility. (Photographer: Meg Roussos/Bloomberg).

Prataap Snacks Q4 Review - Long-Term Strategic Initiatives To Drive Sales, Margins: Systematix

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

Prataap Snacks Ltd.’s Q4 FY21 sales declined 1.5% YoY, in line with our expectations of down 1.3%.

Sales recovered to almost 100% of last year levels despite the closure of schools and colleges and subdued travel activities.

Tele-calling and increased focus on rural markets and smaller towns (less affected by Covid-19) aided sales growth.

Margins were impacted by ~50% YoY inflation in palm oil (~14% of sales).

Inflationary pressure was mitigated through process re-engineering and cost optimisation.

Gross margin contracted 49 basis points to 26.1% while Ebitda margin expanded 14 basis points to 4.5% (estimate 3.1%).

Click on the attachment to read the full report:

Systematix Prataap Snacks Q4FY21 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.