Gopal Snacks on Tuesday posted 70 percent decline in its standalone net profit to Rs 5.3 crore in the December quarter, impacted by higher expenses. The company had posted net profit of Rs 17.8 crore in the same period a year ago.
Gopal Snacks' revenue from operations rose about 7 percent to Rs 393.5 crore during the reported quarter from Rs 367.5 crore a year ago, the company said in a regulatory filing.
The total expenses of the company grew over 13 percent to Rs 387 crore for the third quarter of the current fiscal. The same was reported at Rs 342 crore in the year ago period.
On 11 December 2024, a fire occurred at Rajkot 1 manufacturing facility. The company has intimated the loss of property, plant and equipment, and stock to the insurance company and the survey is currently ongoing. However, the process of assessing the actual physical damage owing to the fire is still being assessed.
Hence, no effect due to the fire is accounted for in the quarter ended December 31, 2024, and nine months ended December 31, 2024, the company said in a statement.
As the Rajkot I manufacturing facility remains temporarily closed, the company has scaled up production at its Modasa and Nagpur facilities to mitigate the operational impact.
"Additionally, we have collaborated with third-party manufacturers to ensure uninterrupted product supply. To further ensure business continuity, the company has commissioned a new manufacturing facility in Gondal, Rajkot to restore lost production capacity and support the Company’s long-term growth strategy," it said.
"In addition to the operational disruptions, the increased cost of key raw materials, such as palm oil, further compounded the pressure on margins. Despite these challenges, our unwavering focus on innovation and market growth remained steadfast. Our unaffected product segments continued to demonstrate remarkable resilience, with the Wafers segment registering an impressive YoY growth of 48% during Q3 FY25," said Bipin Hadvani Chairman and Managing Director of the company.
The earnings before interest, taxes, depreciation and amortization reduced 56 percent to Rs 15.5 crore in the December 2024 quarter from Rs 35.2 crore in the year ago period, while the margin was at 3.9 percent compared to 9.6 percent on-year.
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