Buzzing Stock: Prataap Snacks gets Food Processing Ministry nod under PLI Scheme
The company received approval under PLI Scheme - Category - I, Segment - Ready to Cook/Ready to Eat (RTC/RTE).
Indore-based Indian Snack Food Company, Prataap Snacks was among the FMCG names that received approval under the Production Linked Incentive (PLI) Scheme of the Government of India for the Food Processing Industry this week.
The company has attained approval for the PLI Scheme – Category – 1, Segment – Ready to Cook/Ready to Eat (RTC/RTE). The approval is for a sales-based incentive that would be payable on incremental sales of eligible products over the base year sales as defined in the PLI Scheme.
According to the company’s filing with the BSE, the rate of incentive for eligible products is 7.5% from FY22 to FY25. This reduces to 6.75% in FY26 and further down to 6% in FY27. The incentives are subject to the terms and conditions as approved by the competent authority from time to time.
The steady recovery in the overall macro environment and rebound in consumption following the lifting of major restrictions (covid) has led to healthy revenue growth in the quarter. The company witnessed recovery across several product categories during Q2FY22 with sales volumes surpassing pre-covid levels. The Operating revenue has witnessed 12.95% YoY growth from Rs 326.70 crore to Rs 370.58 crore. PBIDT (Ex OI) grew marginally by 3.55% YoY at Rs 24.18 crore for Q2FY22, however, the margins declined by 62 bps to 6.52% due to a rise in input prices and transportation costs. The Net Profit for the quarter jumped by 74% YoY to Rs 14.7 crore.
Prataap Snacks is expected to see demand grow once the primary schools reopen. The sweet snacks portfolio currently contributes 3-3.5% of the revenues which is projected to reach 8% in the next three years. Over the next two years, Prataap Snacks aims to understand the aggressive growth of its distribution network, exploring more areas to increase its coverage and improve topline growth. The company will also diversify its product lines to include different prices and packaging sizes to reach stores at different price points.
By 11 am on Wednesday, the stock of Prataap Snacks Limited was seen trading at Rs 796.40, up by 0.70% or Rs 5.55 per share as against a 1.44% gain on the benchmark index. The 52-week high of the scrip is recorded at Rs 850 and the 52-week low at Rs 484.65 on the BSE.
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