After Bikaji Foods reported poor Q3FY25 results, with net profit down 39% YoY to ₹28.6 crore, the company’s shares plummeted by over 13%. In the face of growing expenses and margin constraints, investors made a notable offer as EBITDA fell 26% despite a 14.5% increase in revenue.
On February 7, Bikaji Foods’ stock fell by around 13 percent during intraday trading following the release of the company’s poor third-quarter financial results for FY25. Investor sentiment was affected by a steep drop in profitability and margin contraction, which resulted in a significant stock offer.
Shares of Bikaji Foods Fall Over 13% After Poor Q3 Earnings:
In Q3FY25, Bikaji Foods reported a net profit of ₹28.6 crore, a 39 percent year-over-year (YoY) decrease from ₹46.6 crore in the same period the previous year. Despite a modest revenue increase, the reduction was mainly ascribed to worse operational performance.
A 3 percent increase in volumes helped to support a 14.5 percent YoY gain in revenue to ₹714.9 crore. Before interest, taxes, depreciation, and amortization, EBITDA dropped 26% yearly to ₹55.5 crore. Because of rising raw material prices and inflationary pressures, the EBITDA margin fell precipitously by 425 basis points to 7.8%.
With 62.1 percent of overall revenue, the ethnic snacks category grew by 10.5 percent year over year. Packaged sweets gained 11.2 percent, accounting for 18.1 percent of total revenue. The revenue from papads, which accounted for 6% of total sales, increased by 9.6%, while the revenue from western snacks stayed constant at 6.8%.
With a 10.9 percent volume growth, revenue climbed 17.1 percent yearly to ₹2,008.2 crore for the nine months ending December 31. Profit after tax (PAT) was ₹154.4 crore with a net margin of 7.7 percent, while EBITDA was ₹253.9 crore with a margin of 12.6% for the quarter. The period’s essential profits per share (EPS) came to ₹6.24.
Stock Performance and Market Reaction:
The shares of Bikaji Foods fell 12.8 percent to a low of ₹638.10 intraday after the results announcement. The stock is more than 36 percent below its September 2024 52-week high of ₹1,005. It is still 34% higher than its 52-week low of ₹475.50, reached in March 2024.
The stock has been under pressure recently, although it gained 30% last year. February saw an almost 5% fall, making it the sixth consecutive month it lost money. It dropped more than 11 percent in January alone.
