Bikaji Foods Shares Fell Nearly 9% After Release of Q3FY25 Results

Bikaji Foods International Ltd. reported a 14.5% year-on-year (YoY) increase in revenue for Q3FY25, reaching ₹7,149 million. Volume growth was 3.0% YoY. EBITDA stood at ₹555 million, with a 7.8% margin, affected by inflationary pressure and higher raw material costs. Profit after tax (PAT) was ₹278 million, translating to a 3.9% margin. Earnings per share (EPS) (Basic) stood at ₹1.14.

As of February 7, 1:15 PM, Bikaji Foods International Ltd. traded at ₹674.95, down ₹58.80 (8.01%) for the day. Over the past six months, the stock has declined by 14.17%, but it remains up by 19.67% over the past year.

Segment-Wise Performance

Traditional snacks remained the highest revenue contributor, making up 62.1% of total sales, with a 10.5% YoY growth. Packaged sweets saw a 11.2% increase YoY, contributing 18.1% to revenue. The papad segment grew by 9.6%, accounting for 6% of revenue. Western snacks, which form 6.8% of total sales, saw no significant growth this quarter

Nine-Month Performance

For the nine-month period (9MFY25), revenue rose 17.1% YoY to ₹20,082 million, with 10.9% volume growth. EBITDA for the period stood at ₹2,539 million, with a 12.6% margin. PAT for the nine months was ₹1,544 million, with a 7.7% margin.

The company cited inflation in key raw materials, including edible oil, potatoes, and packaging materials. Price adjustments were made to counter rising costs. While urban demand slowed down, rural demand improved during the quarter.

Expansion and Acquisitions

Bikaji increased its direct distribution by adding 10,000 new outlets in Q3FY25. In December 2024, it incorporated a new subsidiary, Bikaji Bakes Private Limited. The company also acquired Hazelnut Factory Food Products Pvt. Ltd.in October 2024.

Gross margin for Q3FY25 was 29%, while EBITDA margin stood at 7.8%. For the nine-month period, gross margin was 32%, and EBITDA margin was 12.6%. The company continues to focus on expansion while dealing with cost pressures.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing