India's Bikaji Foods posts 47% profit rise as raw material costs ease

Bikaji Foods International

06/11/2023 10:12

CHENNAI, Nov 6 (Reuters) - India's Bikaji Foods
International  BIKA.NS  reported a 47% increase in quarterly
profit on Monday, benefitting from higher distribution of its
crispy ethnic snacks and easing ingredient prices.
    Prices of several raw materials in the packaged foods
segment, including edible oils and corrugated boxes, have
dropped in recent months, helping everyone in the sector from
biscuit maker Britannia Industries  BRIT.NS  to Bikaji report
solid earnings.
    Bikaji — which has a strong foothold in Rajasthan, Bihar and
Assam — has been rapidly expanding as the company tries to tap
into India's growing middle class and is now focussing on states
including Karnataka, Haryana and Uttar Pradesh.
    The efforts helped its revenue from operations climb 5.6% to
6.08 billion rupees ($73.08 million) for the second quarter
ended Sept. 30, according to a regulatory filing.
    Net income surged 47.3% to 611.9 million rupees, as
materials cost edged up only 1.4% compared with the almost 3%
increase in the previous quarter.
    Shares in Bikaji, which last quarter bought a 49% stake in
smaller rival Bhujialalji, rose as much as 4.9% after results,
taking their gains to over 15% this year.
        
  
    ($1 = 83.1970 Indian rupees)
  

 (Reporting by Praveen Paramasivam in Chennai; Editing by Tasim
Zahid)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))