Prataap Snacks Limited Earnings Summary — Q4 FY2023
Prataap Snacks Reports Sharp Profit Recovery in Q4 Amid Stable Sales
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 9.3% sequentially in Q4 FY2023.
- Revenue of ₹387 Cr is 7.0% higher year-on-year.
- Revenue has compounded at 6.0% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹22 Cr is 832.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 247.8% annualised across the period.
- Operating margin stands at 4.9% in Q4 FY2023.
- Operating margin expanded by 352 bps year-on-year.
- Over the last two years operating margin has expanded by 39 bps.
- PBT margin is 0.9%.
- Expense growth of 3.1% remained below revenue growth of 7.0%.
- Operating profit of ₹19 Cr is 282.8% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 68/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q4 FY2023 | Q3 FY2023 | Q2 FY2023 | Q1 FY2023 | Q4 FY2022 | Q3 FY2022 | Q2 FY2022 | Q1 FY2022 | Q4 FY2021 | Q3 FY2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 387 | 426 | 457 | 383 | 361 | 385 | 371 | 280 | 310 | 339 |
| Expenses | Stable | 368 | 403 | 435 | 385 | 357 | 367 | 346 | 269 | 296 | 322 |
| Operating Profit | Volatile | 19 | 23 | 22 | -2 | 5 | 18 | 24 | 11 | 14 | 18 |
| Operating Margin | Volatile | 4.9% | 5.5% | 4.8% | -0.5% | 1.4% | 4.7% | 6.5% | 4.0% | 4.5% | 5.2% |
| Other Income | Volatile | 1 | 2 | 3 | 2 | 2 | -12 | 8 | 1 | 3 | 2 |
| Interest | Stable | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 1 | 1 |
| Depreciation | Stable | 15 | 15 | 18 | 14 | 14 | 13 | 13 | 13 | 13 | 13 |
| Profit Before Tax | Volatile | 4 | 8 | 5 | -16 | -9 | -8 | 17 | -2 | 2 | 5 |
| Tax | Volatile | -18 | 3 | 1 | -4 | -6 | -1 | 3 | -1 | -5 | 1 |
| Net Profit | Volatile | 22 | 5 | 4 | -11 | -3 | -7 | 15 | -2 | 7 | 5 |
| Net Margin | Volatile | 5.6% | 1.2% | 0.9% | -3.0% | -0.8% | -1.9% | 4.0% | -0.6% | 2.3% | 1.3% |
Key Takeaways
- Latest quarter net profit of ₹22 Cr was significantly bolstered by a negative tax rate (-495%).
- Operating profit of ₹19 Cr represents a recovery from the ₹5 Cr reported in the same quarter last year.
- The company continues to face revenue volatility, with Q4 sales of ₹387 Cr down from ₹426 Cr in Q3.
- 10-year revenue growth of 17% has not translated to profit growth, which remains sluggish at 3% CAGR.
- Operating margins remain thin at 5%, highlighting sensitivity to raw material price fluctuations.
- Return on Equity (ROE) has dropped to a low of 3%, indicating deteriorating capital productivity.
- Yellow Diamond brand maintains strong distribution but struggles with premiumization vs. ₹5 SKU dependence.
Management Guidance
Management aims to leverage the national distribution network but lacks a specific roadmap for structural margin improvement beyond achieving greater scale.
Sentiment Shift
Stable
While net profit spiked due to tax anomalies, the core operating margin remains stagnant at 5%, suggesting no fundamental shift in business efficiency.
Outlook
The company remains trapped in a low-margin segment with high competition from local and national players. Future performance depends heavily on the ability to pass on raw material inflation and shift toward higher-margin premium products.
From the Annual Report (Key Quotes)
“PAT stagnating at a 3% CAGR despite achieving a 17% 10-year revenue CAGR.”
“Operating margins have remained chronically thin, fluctuating between 4% and 9%.”
“The disconnect between the company's vision of becoming a snack powerhouse and the reality of 3% ROE is stark.”
Official Quarterly Documents
This summary is AI-generated from Prataap Snacks Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.