The revenue from operation grew by 18.5% year-on-year to Rs 7,212 million with profit of 15% YoY. EBITDA grew by 21.7% on a yearly basis to Rs 686 million. The profit after tax also saw a notable jump of 14.7%. H1 FY25 reflected a similar strong performance with revenue growth of 18.6% and a volume growth of 15.5%.
The strong financial results can primarily be attributed to the robust demand across all product categories during the festive season. The company’s strategic cost management and effective pricing strategies have enabled maintaining profitability despite inflationary pressures.
“We are delighted to inform our stakeholders that our company has demonstrated strong performance across all the categories. This quarter we have witnessed a significant jump in revenue and profit margins. This surge in growth is due to the demand in Ethnic Snacks and Packaged Sweets on account of Festive seasonality impact. Overall contribution of Packaged Sweets has jumped to 17.5% this quarter, which is again due to festive play,” said Deepak Agarwal, Managing Director, Bikaji Foods International.
“Despite facing significant inflationary challenges, we successfully maintained our margin profile while achieving robust volume growth. Strategic cost management and effective pricing strategies enabled us to navigate this environment, ensuring both profitability and market competitiveness,” he added.
The revenue growth for Q2 FY25 was largely driven by Ethnic Snacks, which contributed 63.8% of the revenue and grew by 10.5%. Packaged Sweets, which constituted 17.5% of the revenue, witnessed a remarkable growth of 22%. Western Snacks and Papad also showed impressive growth rates of 23.2% and 26.2% respectively in Q2 FY25. The growth rates for Western Snacks and Papad in H1 FY25 were 24.5% and 19.4% respectively.The company has made significant efforts to expand its market presence during Q2 FY25, adding approximately 6,110 new outlets. This expansion led to a 27% growth in its focus markets, demonstrating the company’s ongoing efforts to strengthen its distribution network.The shares of Bikaji Foods surged by 85.82% in the last one year. In 2024 so far, the shares have went up by 59.33%
Nuvama maintains a buy rating with a 12- month target price of Rs 1,070.
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