Packaged Foods company Hindustan Foods announced consolidated Q4FY24 & FY24 results:
Q4FY24 Financial Highlights:
- Revenues increased by 11% to Rs 734.4 crore in Q4FY24 from Rs 660.7 crore in Q4FY23
- EBITDA grew by 28% to Rs 64.0 crore in Q4FY24 from Rs 50.0 crore in Q4FY23
- PAT increased by 13% to Rs 22.9 crore in Q4FY24 from Rs 20.2 crore in Q4FY23
FY24 Financial Highlights:
- Revenues increased by 6% to Rs 2,761.9 crore in FY24 from Rs 2,602.6 crore in FY23
- EBITDA grew by 29% to Rs 228.9 crore in FY24 from Rs 177.7 crore in FY23
- PAT increased by 31% to Rs 93.0 crore in FY24 from Rs 71.1 crore in FY23
Commenting on the results, Sameer R. Kothari, Managing Director said, “We posted a decent set of numbers in spite of the quarter being affected by the integration of the two of the largest acquisitions done by the company so far. This quarter has been a testament to the fact that the hard work for M&A starts after the transaction is completed.
This quarter saw us integrating the Baddi unit, a factory with complicated regulatory requirements and KNS Shoetech, a business with nearly 5000 people. The integration is progressing well and I am confident that we should be able to start seeing the benefits of the integration within the next quarter or so.
In terms of overall numbers, while the slowdown in consumption continues to affect our growth plans, I am confident that the steps that we have taken in terms of diversifying our product base into newer areas should help us continue our growth journey ahead. We remain committed to achieving our revenue target of Rs 4,000 crore for FY25.”
Commenting on the Financial Performance, Mayank Samdani, Group CFO said, “The company has posted a record EBITDA of Rs 64.0 crore for the quarter and Rs 228.9 crore for the financial year 2024. The company had an additional expense of nearly Rs 8 crore on depreciation and interest as compared to the previous quarter mainly due to the acquisitions of Baddi and shoe units. However, the slow ramp up of Baddi factory due to the licensing and other regulatory issues did not result in commensurate revenues, thereby impacting the PBT and the PAT for the quarter.
The Company had to invest in working capital in the form of raw material, packaging material and finished goods due to the acquisition of the Baddi and the shoe units. In spite of that, the company generated a healthy cash flow from operations of Rs 87 crore.”