Kakinada, India | February 1, 2025
Apex Frozen Foods Ltd. (BSE: 540692, NSE: APEX) has announced its unaudited financial results for the third quarter ended December 31, 2024. Despite a 55.8% YoY growth in revenue, the company reported a net loss of ₹22.29 lakhs due to increased operational expenses and financial costs.
Key Financial Highlights (₹ in Lakhs)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 23,072.89 | 19,952.21 | 14,810.13 | 61,623.62 | 64,246.25 | 80,410.32 |
| Total Income | 23,306.09 | 20,017.89 | 14,862.60 | 61,961.58 | 64,416.05 | 80,729.16 |
| Cost of Materials Consumed | 15,282.09 | 15,202.30 | 12,425.97 | 43,398.85 | 47,238.06 | 58,000.97 |
| Employee Benefits Expense | 1,070.77 | 1,091.28 | 1,371.99 | 3,283.62 | 4,094.34 | 5,451.13 |
| Finance Costs | 278.73 | 283.89 | 192.57 | 790.25 | 764.90 | 1,005.85 |
| Depreciation & Amortization | 371.18 | 382.16 | 344.78 | 1,128.33 | 1,390.02 | 1,481.76 |
| Other Expenses | 4,045.28 | 3,811.41 | 2,927.62 | 11,534.44 | 11,442.90 | 14,563.27 |
| Total Expenses | 23,327.26 | 20,223.28 | 15,050.08 | 61,683.59 | 62,411.21 | 78,773.44 |
| Profit/(Loss) Before Tax | (21.17) | (205.35) | 359.52 | 277.99 | 2,004.84 | 1,955.72 |
| Net Profit/(Loss) | (22.29) | (166.97) | 297.41 | 191.20 | 1,495.94 | 1,459.92 |
| EPS (₹) - Basic & Diluted | (0.07) | (0.53) | 0.95 | 0.61 | 1.79 | 1.67 |
Performance Overview
- Revenue Surge: The company reported 55.8% YoY growth in revenue, driven by strong operational performance and export benefits.
- Operational Challenges: Despite the revenue boost, a rise in input costs, employee expenses, and higher financial costs impacted the bottom line.
- Profitability Pressure: Apex Frozen Foods recorded a loss of ₹22.29 lakhs, marking a sharp decline from the ₹297.41 lakhs profit in Q3 FY24.
- Export Benefits: The company recorded export incentives of ₹1,317.57 lakhs in Q3 FY25, compared to ₹781.28 lakhs in Q3 FY24.
Corporate Announcements
- Board Meeting Outcome: The Board approved the un-audited financial results for Q3 FY25 and the Limited Review Report by auditors Padmanabhan Ramani & Ramanujam.
- Re-appointment of Independent Director: The Board re-appointed Ms. Deepthi Talluri (DIN: 08726143) as an Independent Director for a second five-year term from April 1, 2025, to March 31, 2030, subject to shareholder approval.
- Insider Trading Window: The trading window remains closed for designated employees and insiders until February 3, 2025, reopening on February 4, 2025.
Management Commentary
K. Satyanarayana Murthy, Executive Chairman, stated:"While revenue growth remains strong, profitability was impacted due to increased raw material costs and financial expenses. The company remains focused on optimizing costs and improving operational efficiencies to sustain profitability in the coming quarters."
Strategic Outlook
- Export Focus: The company continues to leverage export benefits, a key driver for revenue.
- Cost Optimization Measures: Management is working towards improving cost efficiencies to restore profitability.
- Long-Term Growth Plans: Apex Frozen Foods remains committed to expanding production capacity and diversifying its product offerings.