Bikaji Foods International Limited (Bikaji), a prominent manufacturer of ethnic snacks, reported impressive financial results for the fiscal first quarter. The company’s profit soared to Rs 41.41 crore, marking a significant 163.8% increase from the Rs 15.70 crore recorded during the corresponding quarter of FY23. The revenue from operations reached Rs 481.69 crore, showing a notable 15.1% growth compared to Rs 418.51 crore in the quarter ended June 2022. The total income for the quarter stood at Rs 487.72 crore, with total expenses amounting to Rs 431.88 crore.
Bikaji’s strong performance was attributed to several factors, including a remarkable EBITDA margin of 13.6% (a YoY increase of 630 bps and a QoQ increase of 20 bps). This was mainly driven by improved operating efficiency, a favorable product mix, and the positive impact of softened input material prices.
According to its management, the fiscal year FY24 began with robust double-digit value and volume growth in Q1, with positive outcomes across various business segments and markets. The company demonstrated resilience in its EBITDA margin during this period, thanks to its superior mix, operating leverage, and effective cost management strategies.
In terms of revenue distribution, the ethnic snacks category saw a substantial 16.1% YoY growth and accounted for approximately 75% of the overall revenue. Packaged sweets contributed around 7 per cent of the total revenue and recorded a growth of 10.5% YoY. Western snacks witnessed a remarkable 19.3% YoY revenue growth, while the papad segment’s revenue grew by 1.1%.
Despite the good results, the stock came under the over-all market’s selling pressure. It closed at Rs. 472.40, a 2.44% lower than the previous day’s close on NSE on Wednesday.