The net profit increased to Rs 49.09 crore while total sales rose to Rs 612.89 crore in Q3FY24 due to strong festive demand and favourable cost of raw materials for the company.
An uneven spatial distribution of monsoon last year, with parts of North and East India facing a second straight year of weak monsoon, impacted rural demand for fast-moving consumer goods (FMCG). Rural consumption is vital for demand recovery as it contributes around 36% of overall FMCG sales.
“We expect gradual improvement in rural FMCG volumes from the first quarter of FY25, given the high election spending and hopefully no El Nino this year,” said Abneesh Roy, executive director at Nuvama Institutional Equities. He added, “El Nino derailed the initial green shoots seen at the start of FY24.”
Deepak Agarwal, managing director of Bikaji said, “This quarter, we experienced a robust demand driven by festive celebrations, marking it as our most successful period for packaged sweets.” He added, “The surge in growth and demand within this segment can be attributed to a combination of factors. The festive season played a significant role, alongside improvements in our operational efficiencies and advantageous pricing of raw materials.”
The ethnic snacks segment expanded by 15%, while the packaged sweets division saw sales surge by 83%. Sales of the western snacks grew by 10%.Shares of Bikaji Foods closed at Rs 547.30 a piece, down by 6.01 %, on the BSE. In the snacks segment, Bikaji competes with Haldiram, by far the market leader, followed by Pepsi and Balaji.
(You can now subscribe to our ETMarkets WhatsApp channel)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
