Updated February 2nd, 2024 at 18:23 IST
Bikaji Foods reports strong Q3 profit surge amid soaring demand for packaged sweets and snacks
The consolidated net profit for quarter ended December 31 amounted to Rs 46.62 crore, marking a notable rise from Rs 40.74 crore in the year-ago period.
Bikaji Foods Q3 profit: Packaged snacks and sweets major Bikaji Foods International posted a robust 14.4 per cent increase in its third-quarter profit on Friday. The surge in earnings is attributed to the heightened demand for its diverse range of packaged sweets and snacks.
The consolidated net profit for the three months ending December 31 amounted to Rs 46.62 crore, marking a notable rise from Rs 40.74 crore recorded in the corresponding period the previous year.
The festive season, spanning from October to November, witnessed a notable uptick in consumer purchases of snacks and sweets, contributing significantly to Bikaji Foods' third-quarter financial performance.
The ethnic snacks segment, featuring crispy, deep-fried snacks and the popular Bhelpuri—a savory, spicy, and crunchy mix—constituted approximately 63 per cent of the total revenue, experiencing a substantial 15.4 per cent year-on-year growth.
Driven by the surge in the ethnic snacks segment, revenue from operations witnessed a remarkable 23 per cent increase, reaching Rs 624 crore.
Surpassing all segments, the packaged sweets category demonstrated the highest growth during the quarter, experiencing an impressive 83 per cent surge, outshining even the robust performance of ethnic snacks.
Managing Director Deepak Agarwal attributed this success to a combination of factors, stating, "The festive season played a significant role, alongside improvements in our operational efficiencies and advantageous pricing of raw materials."
Market response to Bikaji Foods' stellar performance was evident in the stock market, with the company's shares soaring by 12.6 per cent during the quarter. This exceeded the 10.4 per cent increase recorded in the Nifty FMCG index.
The shares of Bikaji International ended 5.87 per cent lower at Rs 549.90 apiece on the NSE on Friday, February 2, 2024.
(With Reuters inputs.)
Published February 2nd, 2024 at 18:23 IST