Hindustan Foods

Hindustan Foods Limited (HFL) recently announced its financial results for the quarter and half-year ending in September 2023. Here are the key points:

Financial Highlights for H1FY24 (First Half of the Fiscal Year 2023-24):

• Revenues remained steady at Rs 1,297.1 Crores in H1FY24, compared to Rs 1,262.3 Crores in H1FY23.
• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 29% to Rs 106.9 Crores in H1FY24, up from Rs 82.7 Crores in H1FY23.
• Profit After Tax (PAT) increased significantly by 42% to Rs 48.0 Crores in H1FY24, up from Rs 33.8 Crores in H1FY23.

Financial Highlights for Q2FY24 (Second Quarter of the Fiscal Year 2023-24):

• Revenues remained stable at Rs 677.0 Crores in Q2FY24, compared to Rs 663.7 Crores in Q2FY23.
• EBITDA increased by 26% to Rs 55.6 Crores in Q2FY24, up from Rs 44.0 Crores in Q2FY23.
• PAT increased by 31% to Rs 24.7 Crores in Q2FY24, up from Rs 18.9 Crores in Q2FY23.

Operational Updates:

• A new factory in Guwahati, Assam, dedicated to juice production, is progressing well and is expected to begin commercial production in the fourth quarter of FY24.
• The company’s plans for the Soap & Bars project have been commercialized since the first quarter of FY24 and are ramping up successfully.
• An upgrade of the beverage facility in Mysuru for a new MNC customer has been completed, and commercial production began in October.

Other Updates:

• The company is raising Rs. 400 Crores through preferential warrants for future growth.
• HFL plans to invest up to Rs. 100 Crores in the sports shoe manufacturing sector and has executed a share purchase agreement to acquire 100% share capital of KNS Shoetech Pvt. Ltd.
• The Board has approved an investment of Rs. 75 Crores to set up a new Greenfield Ice Cream facility.
• The acquisition of the Baddi factory has been delayed due to regulatory approvals, and the management now expects to complete the transaction by the end of Q3FY24.