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Hindustan Foods announced Q3FY24 & 9MFY24 results:
Consolidated Q3FY24:
- Revenues: Grew by 7%, totaling Rs 730.3 crore as compared to Rs 679.6 crore in Q3FY23.
- EBITDA: Enhanced by 29%, reported at Rs 57.9 crore against Rs 45.0 crore in Q3FY23.
- Profit After Tax (PAT): Saw an increase of 29%, standing at Rs 22.0 crore compared with Rs 17.1 crore in Q3FY23.
Consolidated 9MFY24:
- Revenues: Remained stable at Rs 2,027.4 crore, compared to Rs 1,941.9 crore in 9MFY23.
- EBITDA: Increased by 29%, reaching Rs 164.8 crore, up from Rs 127.7 crore in 9MFY23.
- Profit After Tax (PAT): Improved by 38%, amounting to Rs 70.1 crore, versus Rs 50.9 crore in 9MFY23.
Operational Updates
- Completed the acquisition of the Baddi plant with an investment of Rs 128 crore, marking expansion into pharmaceuticals and OTC health products.
- Subsidiary KNS Shoetech Pvt. Ltd. finalized the acquisition of a sports shoe manufacturing unit in Kundli, Haryana for Rs 31 crore.
- Proposed acquisition of another sports shoe manufacturing facility with an expected investment of around Rs 100 crore.
- Successfully concluded a preferential issue of warrants amounting to Rs 400 crore.
- Guwahati, Assam juice manufacturing factory is on track to commence production by Q4FY24.
- The Greenfield Ice Cream facility in Haryana is underway, with a planned capex of Rs 100 crore, aiming for partial production by Q3FY25 and full-scale operation by Q4FY25.
Sameer R. Kothari, Managing Director, said: "While the overall consumer market seems to be subdued, we believe that the investments done by your company place it well to set the tone for the future growth of the company over the next few years.
This quarter HFL has seen the closure of the Baddi transaction and I expect the complete integration of this factory within the next 3-6 months. We are very optimistic about this acquisition as it opens up a whole new sector of OTC Pharma for us. The market opportunity is immense and we see HFL placed well to capitalize on future growth in this space.
Additionally, the acquisition of KNS Shoetech and the manufacturing assets of KNS Trading has opened up the sector of Sports shoe manufacturing for HFL. We are in advanced discussions to invest the further amount of Rs 100 crore in this sector and expect to close the transaction in this Quarter.
We are confident that, these two sectors will allow us to propel the growth for the company, while we remain steadfast in the FMCG & staples markets."
Mayank Samdani, Group CFO, said: "The company posted a healthy 29% growth in the Quarterly PAT numbers over the last year and a 38% growth in the 9 monthly PAT numbers over the last year. This has been achieved as most of the projects have commercialized and are ramping up satisfactorily.
This quarter has also seen the impact of the integration of the new units (both Baddi and KNS Shoetech) and the seasonal effect of the ice cream and beverages business. We believe that the financial numbers may be affected by this integration for one quarter and both the new acquisitions should start normalizing by Q1FY25. Accordingly, we do believe that we are well on track to meet our guidance of achieving a 4000 crore top line by FY25."
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