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

CHENNAI, Nov 6 (Reuters) - Indias 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 Indias 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)