Here is the email sent to share holders
I’m delighted to announce the 4th quarter results with a profit of Rs.25.97 crores, showcasing a growth of 4.5% with a revenue of Rs.1687.46 Crores and profit before tax of Rs.24.24 crores for the financial year 2023-24. The company is into its 60th year of operation and our steadfast growth at KSE continues to deliver value to investors. Our core segment Cattle Feed delivered a profit of Rs.40.43 crores for the year ended 31st March 2024. Following the strategic recommendations provided by Grant Thornton by conducting a detailed market analysis, and evaluating the company’s internal strengths and weaknesses, the company is planning significant strategic growth. The recommended strategy comprises of segment, functional and corporate level recommendations which are poised to enhance our growth and presence in the market. These interventions are pivotal in cementing our progress and the steps taken to ensure sustained growth.
Following are the key highlights of the 3-year growth plan which your company has started implementing.
· By embarking on market expansion to new geographies, introduction of innovative products, and diversification of product offerings across animal feed, ice cream and dairy segments, the company has already increased its market base in southern part of India on cattle feed and in three years your company will make its footprints in northern India as well.
· Though the oil cake processing division was into negative margins during FY 2023-24 due to material prices inflation and downward trend in selling price, your company put in various measures to keep the prices under control and the year 2024-25 started with an increase in selling price of our refined oil. Your company foresees the oil cake division delivering good results in the coming year.
· In ice cream segment, our brand ‘Vesta’ is becoming popular in Kerala region resulting in increased market share and growth. This will continue in the coming year as well. Strengthening brand image for ‘Vesta’ as an FMCG product of KSE to enhance its market presence and brand recall through strategic marketing initiatives is on the anvil.
· Dynamic approach towards cost accounting bringing out clearly performance of all the four business units – Animal Feed, Oil Processing, Dairy and Ice Cream
· In the animal feed segment, to achieve enhanced growth in the next financial year, phased market expansion and penetration in other states with emphasis
· optimisation through dynamic procurement and strategic pricing adjustments is planned.
· In the dairy & ice cream segments, strategic pricing of the SKU portfolio, positioning of the brand, team enhancement with enhanced expertise and new product variants are planned.
· Based on the recommendations by GT on functional performance, initiatives are in place to implement the same across five areas of people excellence, digital transformation, financial planning, robust governance & compliance, and environmental stewardship.
· As part of digital transformation initiatives proposed, the ERP systems would be strengthened, and a tech-driven performance culture would be implemented.
· To instil a performance-driven culture, enhanced incentive pay structures would be implemented for marketing teams across segments to drive the growth strategy goals.
Your company under the renewed leadership and vision has started to witness positive signs and the outcome is evident from our last quarter performance; further, the suggested growth strategy is poised to fortify KSE’s position and pave the way for continued success in the evolving market landscape. These strategic initiatives signify our dedication to operational refinement, performance enhancement, and sustained growth. All strategic decisions will be result oriented and futuristic; we anticipate a steady growth in the upcoming fiscal year, further enhancing our top-line performance.
As your company steps into its 60th year of operation, a special mention of appreciation to all share holders, customers, suppliers, employees and business partners who associated and cooperated in our march towards professional excellence. We solicit your enhanced and continued support in all our ambitious, future endeavours.
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