Bikaji Foods Shares Tumble on Weak Q3 Performance
7th Feb 2025
Q3FY25 Financial Performance
Bikaji Foods reported a 39% year-on-year decline in net profit for the third quarter of FY25, with profitability and margins taking a hit. Revenue grew 14.5% YoY, but a sharp 26% drop in EBITDA and 425 bps EBITDA margin contraction weighed on investor sentiment, leading to a significant stock sell-off.
Segment-wise Performance
The ethnic snacks segment, which accounted for 62.1% of total revenue, witnessed a 10.5% YoY growth. The packaged sweets category recorded an 11.2% increase, contributing 18.1% to overall revenue. Meanwhile, western snacks revenue remained flat at 6.8%, while the papad segment posted 9.6% growth, making up 6% of total revenue.
9-Month Financial Highlights
For the nine-month period ended December 31, Bikaji Foods' revenue increased by 17.1% YoY to ₹2,008.2 crore, with a 10.9% rise in volumes. EBITDA for the period stood at ₹253.9 crore, reflecting a 12.6% margin, while profit after tax (PAT) came in at ₹154.4 crore, with a net margin of 7.7%. Basic earnings per share (EPS) for the period was ₹6.24.
Stock Performance and Market Reaction
Following the earnings announcement, Bikaji Foods' stock plunged 12.8% to an intra-day low of ₹638.10. The stock is now over 36% below its 52-week high of ₹1,005, which it hit in September 2024, but remains 34% above its 52-week low of ₹475.50, recorded in March 2024.
Bikaji Foods reported a 39% year-on-year decline in net profit for the third quarter of FY25, with profitability and margins taking a hit. Revenue grew 14.5% YoY, but a sharp 26% drop in EBITDA and 425 bps EBITDA margin contraction weighed on investor sentiment, leading to a significant stock sell-off.
Segment-wise Performance
The ethnic snacks segment, which accounted for 62.1% of total revenue, witnessed a 10.5% YoY growth. The packaged sweets category recorded an 11.2% increase, contributing 18.1% to overall revenue. Meanwhile, western snacks revenue remained flat at 6.8%, while the papad segment posted 9.6% growth, making up 6% of total revenue.
9-Month Financial Highlights
For the nine-month period ended December 31, Bikaji Foods' revenue increased by 17.1% YoY to ₹2,008.2 crore, with a 10.9% rise in volumes. EBITDA for the period stood at ₹253.9 crore, reflecting a 12.6% margin, while profit after tax (PAT) came in at ₹154.4 crore, with a net margin of 7.7%. Basic earnings per share (EPS) for the period was ₹6.24.
Stock Performance and Market Reaction
Following the earnings announcement, Bikaji Foods' stock plunged 12.8% to an intra-day low of ₹638.10. The stock is now over 36% below its 52-week high of ₹1,005, which it hit in September 2024, but remains 34% above its 52-week low of ₹475.50, recorded in March 2024.