Financial Performance
• Q4 FY24 Sales: Rs. 387 crores
• EBITDA Growth: 87% year-over-year, EBITDA margin at 9.1% (highest in 26 quarters)
• Full-Year Revenues: Rs. 1,610 crores
• Record Annual EBITDA: Rs. 141 crores (126% increase)
• Dividend Recommendation: 40% per share
Growth Initiatives
• Sales Force Automation: Enhancing growth strategies
• Modern Trade Expansion: Focus on new product launches and distribution
• Rural Demand: Optimism for FY25 due to improved market conditions
Product Segment Performance
• Namkeen Category: 16% growth, focus on expanding distribution
• Sweet Snacks Portfolio: Underperformed, innovation efforts ongoing
• Larger Pack Sizes: Expected increase in contribution from modern trade
Production and Supply Chain
• Production-Linked Incentive (PLI) Scheme: Investments completed, new plants commissioned
• Jammu Plant: Aims to enhance supply to underserved markets
• Oil Usage: Exploring sunflower oil options alongside palm oil
Sales Projections
• Topline Target: Rs. 500 crores by Q2 or Q3 FY25
• Current Growth Momentum: 10%
Margin Sustainability
• Quarterly Fluctuations: Expected due to commodity pricing changes
• Long-term Margin Stability: Structural changes to improve efficiency
Competitive Landscape
• Chips Segment: Increased competition, intensity believed to have peaked
• Namkeen Market: Aggressive competition, but growth potential remains
Regional Sales Insights
• Jammu, Kashmir, Punjab Sales: Current monthly sales at Rs. 3.5 crores, potential to double
• Challenges: Regional taste variations and logistical issues
Future Plans
• New Product Launches: Targeting East and South India within 2-3 months
• Extruded Snack Innovations: New flavors and healthier options expected soon
Marketing and Capital Allocation
• Increased Marketing Spend: From 1.25% to 1.5%-2%
• Capital Allocation Strategies: Evaluating returns to shareholders and growth opportunities
Closing Remarks
• Management's Outlook: Targeting double-digit growth for the upcoming year
• Call Conclusion: Gratitude expressed for participant engagement, call officially ended.

Date and Context
• Date of Call: November 3, 2023
• Financial Results: Unaudited results for Q2 and half-year ending September 30, 2023
Key Management Present
• Amit Kumat: MD and CEO
• Sumit Sharma: CFO
Financial Performance
• Sales Growth:
• 12% quarter-on-quarter increase
• 4.2% year-on-year decline
• EBITDA:
• Highest quarterly EBITDA of Rs. 38 crores
• Improved EBITDA margin of 8.8%
• Cash Position: Rs. 97.5 crores
Strategic Focus
• Sales Enhancement: Utilizing technology and data analytics
• Namkeen Category:
• Current contribution: 16% of overall sales
• Target: Increase to 20-23%
• Distribution Network:
• Currently reaches 2 million outlets
• Expected annual increase of 5-7%
Future Outlook
• Growth Confidence: Optimism for second half of FY '24 despite competition
• Utilization Rates:
• Current utilization at 60-62%
• Target of 15% year-on-year growth
• J&K Facility: Expected to commence operations in January 2024
Market Challenges
• Rural Market: No significant improvement noted
• Competitive Pressure:
• Regional players impacting pricing
• Potato chips facing the most competition
Cost Optimization
• Savings Projection: Medium-term savings of 1.5% to 2% from process improvements
• EBITDA Margin Improvement: Increased from 6.9% to 8.6% despite raw material inflation
Additional Insights
• Market Share: Likely flat with no new geographical expansions
• Pricing Concerns: Stable potato prices; spices increased by 10% to 20%
Conclusion
• Management expressed gratitude to participants and emphasized ongoing efforts to navigate market challenges while aiming for growth.

Financial Performance
• Sales Growth: 19% increase for FY23, reaching Rs. 16.42 billion.
• Merger: Completed merger with Avadh Snacks to enhance operational efficiency.
• Q4 Challenges: Softening consumer demand impacted revenue; PLI recognition affected.
• EBITDA Improvement: Adjusted EBITDA rose 511% year-on-year.
• Future Goals: Targeting a 9% EBITDA margin by Q4 FY24, excluding PLI incentives.
• Dividend: Board recommended a 20% dividend.
Accounting and PLI Strategy
• PLI Recognition: Initially recognized at the start of the year; plans to adopt a conservative approach for FY24.
• Quarterly Accrual: INDAS allows quarterly accrual, deemed prudent to avoid revenue spikes.
Market Outlook
• Demand Trends: Demand decreased in H2 FY22 but is improving as inflation eases.
• Reinvestment Plans: Margins above 8-9% to be reinvested into advertising and promotion.
Product Performance
• Category Highlights: Fryums category performed well; Rings category recovering from COVID declines.
• Avadh Subsidiary: Achieved Rs. 215 crores in revenue for FY23 with improved margins.
Margin and Cost Management
• Avadh's Margin Improvement: EBITDA margin reached double digits in H2, surpassing Prataap's standalone margin.
• Cost Optimization: Enhanced margins attributed to operating leverage and cost optimization programs.
• Risks: Concerns about rising crude and palm oil prices; adjustments made to mitigate impacts.
Distribution and Growth Strategy
• Direct Distribution: Over 90% of sales through direct distribution.
• Namkeen Category: New product launches planned for growth.
Capacity and Future Plans
• Utilization: Current capacity utilization at 55-60%.
• New Plant: Plans for a new plant in Jammu with a CAPEX of Rs. 100-105 crores over two years.
• Manufacturing: 75% in-house manufacturing, 25% through third-party contract manufacturers.
Conclusion
• Management's Outlook: Expressed gratitude to participants; optimistic about future growth and market conditions.