Shares of Food Specialities hit an all-time low of Rs 346, down 2 per cent on the BSE in Wednesday’s intra-day trade, extending its 13-per cent fall of the past eight trading days on weak December quarter (Q3FY22) results. In the past one month, the stock has fallen 16 per cent as compared to 2.4 per cent decline in the S&P BSE Sensex.

The company is one of the leading Companies in the premium and mid-premium biscuits segment in North India under the brand ‘Cremica’ and a leading premium bakery player in India under the brand ‘English Oven’.

For Q3FY22, Food reported 25 per cent year-on-year (YoY) decline in profit after tax (PAT) at Rs 16 crore due to higher raw material and packaging cost. Revenues grew 17 per cent YoY at Rs 263 crore, on healthy growth by biscuit segment, which was up 29 per cent YoY. Earnings before interest tax and depreciation and amortization (EBITDA) margins contracted 500 bps at 12.6 per cent from 17.6 per cent in Q3FY21.

The management said, the company continued to witness cost increase on account of rising raw material and packaging costs during the quarter. “In order to offset this inflationary pressure, the company has took a further price and are also taking further price rise in March quarter (Q4FY22). However, the company has witnessed strong growth in both biscuits and bakery segment, with revenues growing by 11 per cent YoY and 29 per cent YoY in biscuits and bakery segment respectively,” the management said.

Going forward, with introduction of new products, expansion of distribution network and capacity enhancement, the management foresees strong growth in overall revenues.

Mrs. Bectors Food had made a stock market debut on December 24, 2020. The stock of the biscuit and bread manufacturer had listed at Rs 501, a 74 per cent premium against its issue price of Rs 288 per share on the BSE. It touched a record high of Rs 630 on December 28, 2020.

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