On Friday, Bikaji Foods’ shares surged by 9% to reach ₹592.95 on the BSE and touched a 52-week high, driven by expectations of new capacities and incentives under the PLI scheme, which are likely to improve operational margins. The shares were trading at ₹590, up by 8%, while the S&P BSE Sensex saw a modest increase of 0.19%.
In the fiscal fourth quarter, Bikaji Foods recorded a significant annual increase of 199% in net profit, amounting to ₹11.56 crore, primarily due to strong demand for packaged sweets and snacks. The company’s revenue from operations also rose by 33% to ₹614.4 crore, with a volume growth of 14.3% noted during the period.
Bikaji Foods saw a substantial increase in EBITDA, which jumped from 13.4% to 26.30%. This growth was largely due to a 1003 basis points increase, facilitated by favorable material costs, an improved product mix, and better recovery.
Bikaji Foods has reported a PLI (Production Linked Incentive) income of ₹93.05 crore for FY 20-21, FY 21-22, and FY22-23, having fulfilled all commitments. This income will be recorded on a preferential basis in the future, with management expecting to receive government grants by December 2024.
Bikaji Foods is India’s third-largest traditional snacks company and has expanded internationally. It is renowned for selling Indian snacks and sweets and is the second fastest-growing company in the organized snacks market.
