Prataap Snacks Q1 Review - Limited Pricing Power, Low Margins Remain Key Concerns: Systematix

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Prataap Snacks Ltd.’s Q1FY23 consolidated revenue grew 37% YoY to Rs 3.8 billion, led by strong volume traction, a result of steady uptick in consumption and expansion in the distribution network. Gross margin contracted 122 basis points to 22.8%, with higher other expenses driving Ebitda loss of Rs 20 million versus 4% margins YoY on account of raw material price inflation and supply-chain disruptions. Prataap Snacks recognised production linked incentives of Rs 42.5 million during the quarter. Following are the key monitorables we would look for-palm oil prices,increased prices of laminates and corrugated boxes, anddelays in scaling up its sweet snacks portfolio. We expect compound annual growth rate of 20% in revenue over FY22-24E; Ebitda and profit after tax are slated to post 35% and 63% CAGR over this period..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Prataap Snacks Q1 Review - Limited Pricing Power, Low Margins Remain Key Concerns: Systematix