Bikaji Foods shares climb 5% on strong Q2 results. Full details

Shares of Bikaji Foods International climbed 5 per cent in Wednesday's trade after the third largest ethnic snacks maker reported a 43.5 per cent year-on-year (YoY) rise in consolidated profit after tax at Rs 40.92 crore for the September quarter.

Following the development, the scrip rose 4.99 per cent to hit a high of Rs 415.30 on BSE. With this, the scrip is up 38 per cent over the IPO issue price of Rs 300. The stock made a market debut in November.

Bikaji Foods in a filing to BSE said its revenue for the quarter jumped 32 per cent to Rs 577 crore compared with Rs 437.68 crore in the corresponding quarter last year. PAR margin for the quarter came in at 7.1 per cent against 6.5 per cent in the year-ago quarter. 

Ebitda margin for the quarter stood at 11.1 per cent against 10.4 per cent, thanks to was softening prices of materials, in addition to efficiency program and cost management efforts, Bikaji said the BSE filing.

Managing Director Deepak Agarwal said his company saw a healthy and positive growth in revenue sequentially and on yearly basis.

"In current quarter our top line have delivered 37.7 per cent growth as compared to previous quarter and same is 31.8 per cent as compared to same quarter previous year. We have witnessed a good double-digit growth in all categories as compared to previous year. We have continued to expand our distribution network and we have also started CSD channel in current quarter," he said.

Agarwal said his company has seen softening in prices of key raw materials (edible oil) and packing materials which contributed in the profitability of the company.

"In the current quarter two of our CMU's viz. Hamuman Agro Food Private Limited and Raadhey Namkeen Private Limited has started its commercial production which will help us cater the demand of western snacks as well as Namkeens," Agarwal said.

He said his focus will be on strengthening distribution network to achieve a deeper distribution model, adding that his company would work closely on the RTM strategy for the distribution expansion.

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