Shares of Bikaji Meals tumbled almost 13 % in intra-day buying and selling on February 7 after the corporate reported weak monetary outcomes for the third quarter of FY25. A pointy decline in profitability and margin contraction weighed on investor sentiment, resulting in a major inventory sell-off.
Q3FY25 Monetary Efficiency
Bikaji Meals posted a internet revenue of ₹28.6 crore in Q3FY25, marking a 39 % year-on-year (YoY) decline from ₹46.6 crore within the corresponding quarter final 12 months. The decline was largely attributed to weaker operational efficiency regardless of average income progress.
Income elevated 14.5 % YoY to ₹714.9 crore, supported by a 3 % rise in volumes. Nevertheless, earnings earlier than curiosity, taxes, depreciation, and amortisation (EBITDA) fell 26 % YoY to ₹55.5 crore. The EBITDA margin contracted sharply by 425 foundation factors to 7.8 %, primarily as a result of inflationary pressures and better uncooked materials prices.
The ethnic snacks phase, which accounted for 62.1 % of whole income, witnessed a ten.5 % YoY progress. The packaged sweets class recorded an 11.2 % enhance, contributing 18.1 % to general income. In the meantime, western snacks income remained flat at 6.8 %, whereas the papad phase posted 9.6 % progress, making up 6 % of whole income.
For the nine-month interval ended December 31, income elevated by 17.1 % YoY to ₹2,008.2 crore, with a ten.9 % rise in volumes. EBITDA for the interval stood at ₹253.9 crore, reflecting a 12.6 % margin, whereas revenue after tax (PAT) got here in at ₹154.4 crore, with a internet margin of seven.7 %. Primary earnings per share (EPS) for the interval was ₹6.24.
Inventory Efficiency and Market Response
Following the earnings announcement, Bikaji Meals’ inventory plunged 12.8 % to an intra-day low of ₹638.10. The inventory is now over 36 % under its 52-week excessive of ₹1,005, which it hit in September 2024. Nevertheless, it stays 34 % above its 52-week low of ₹475.50, recorded in March 2024.
Regardless of gaining 30 % over the previous 12 months, the inventory has been beneath strain in latest months. It has declined almost 5 % thus far in February, marking its fifth consecutive month of losses. In January alone, it shed over 11 %.
