Feb 2024 concall
combination of our own brands as well as our agency-backed business backed by our
manufacturing strength has contributed to healthy EBITDA margins in the range of 20%
powered by a debt-free balance sheet. We continue to make investments in our brand and our
manufacturing capabilities for long-term groth.
Coming to the business update. We had a satisfactory growth as well as healthy margins over
the past nine months as we focused on brand building and investing in profitable products. We
saw stable demand for both our processed foods as well as the agency distribution business. Our
Q3 revenue growth could have been better. However, the Red Sea crisis impacted sales
shipments towards the end of the quarter.
We initiated several new plans to accelerate our long-term growth. The Board approval for
investment in Telluric Foods will enable us to accelerate our India business growth. Further, the
merger of our subsidiaries, ADF Foods and Telluric Foods will enable us to achieve substantial
synergies, including efficient capital utilization, flexibility in business operations and cost
rationalization.
. For the
nine months that ended on December 31, 2023, we recorded revenues from operations worth
INR 285.2 crores, an 11.8% increase from the same period last year. Our EBITDA was INR
70.2 crores, a 44.6% increase Y-o-Y.
We managed to expand the EBITDA margin by 560 basis points, reaching 24.6%. We see this
as a tangible outcome of our continuous focus on investing in our brands and innovating in our
product portfolio. Our PAT was INR 54.3 crores, a 36.8% increase from the previous year, with
a PAT margin of 19.1%, an improvement of 350 basis points from the last year.
Now let us look at the quarterly figures. In Q3 of financial year 2024, we saw revenues from
operations side to INR 103.2 crores. This marked a 3.5% Y-on-Y growth and a 6% Q-on-Q
increase. Our EBITDA for this quarter was INR 26.4 crores, a Y-on-Y increase of 2.7% and Qon-Q increase of 16.6%, while our EBITDA margin was 25.6%.
As Sumer mentioned, our Q3 revenues could have been better. However, as sales shipments
were somewhat impacted by the crisis in the Red Sea towards end of the quarter. This led to a
marginal impact on the revenues as well as our EBITDA and both grew at a slower pace on a Yon-Y basis. PAT for the quarter was INR 20.3 crores, a 5.4% increase Y-on-Y, 14.4% increase
Q-on-Q. Our PAT margin for this quarter stood at 19.6%, an improvement of 30 basis points on
the previous year.
Moving on to console performance. For the nine months ended 31st December 2023, revenue
from operations was INR 366.7 crores, a 12.1% increase Y-on-Y. EBITDA was INR 70.6 crores,
an increase of 30.4% Y-on-Y. EBITDA margin stood at 19.3%, expanding by 270 basis points
Y-on-Y. Profit after tax was INR 48.8 crores, up 22.6% Y-on-Y with a PAT margin of 13.3%,
an increase of 110 basis points on a yearly basis.
Coming to the quarterly performance, our revenue from operations for Q3 FY’24 was INR 129.7
crores, an increase of 5.2% Y-on-Y and 4% increase from the last quarter. Our EBITDA for Q3
FY’24 was INR 27 crores, recording a small decrease of 0.4% Y-on-Y with an increase of 23.8%
from the previous quarter. Our EBITDA margin stood at 20
Our PAT for the quarter was INR 19.1 crores, marking a Y-on-Y increase of 3% and quarteron-quarter increase of 27.9%. For Q3 FY’24, the PAT margin stood at 14.7%. Our capex for
nine months period ended December '23 was INR 3.5 crores in debottlenecking and another INR
3.5 crores in cold storage project. Our balance sheet continues to remain debt-free as of date.
The Board has approved INR 13 crores in optionally convertible redeemable preference shares
investment in our subsidiary, Telluric Foods India Limited. This will downstream to Telluric
Foods Limited, TFL, a step-down wholly-owned subsidiary of the company by TFIL. The paid
monies will be used to support the brand building and working capital requirement of TFL.
Also, the Board approved transfer of ADF’s entire equity investment in its wholly-owned
subsidiary, ADF Foods India Limited, to its step-down wholly-owned subsidiary, which is
Telluric Foods Limited at fair market value to be determined.
Post this, a merger is proposed between the company’s subsidiaries, ADF Foods India Limited,
which is a transferor company and Telluric Foods Limited, the transferee company. This
proposed merger is already approved in principle by the Board. As highlighted by Sumer, the
merger is expected to generate substantial cost synergies as well as greater financial strength and
flexibility.
Overall, we continue to judiciously invest in our manufacturing capabilities as well as our brandbuilding exercise in order to focus on increasing our margin profile as well as deliver greater
returns in the long term.
, there is a good growth which has happened over Q2 numbers in Q3 when you
look at the distribution business. We are also looking at some additional, we have talked to a
couple of companies, and we will share some details as and when any transactions happen, and
we will start selling those products.
The main EBITDA growth which has happened, of course, the margin profile is better when you
look at the product mix which we have. Our frozen share is increasing overall sale. Second,
when you look at the Y-on-Y EBITDA growth in nine months, there was higher freight cost,
which we are seeing in the last financial year and that was substantially impacting our bottom
line. However, in the current year, first nine months, the freight cost was lower. Towards end of,
of course, Q3, the freight cost have also started going up. And we will see now how that will
shape up in Q4.
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