Key Financial Highlights (Standalone)
| Particulars | Q3 FY25 | Q3 FY24 | YoY Growth | 9M FY25 | 9M FY24 | YoY Growth |
|---|---|---|---|---|---|---|
| Sales Tonnage (MT) | 14,702 | 15,216 | -3% | 58,685 | 64,034 | -8% |
| - Exports | 7,976 | 5,837 | +37% | 18,760 | 19,014 | -1% |
| - Domestic | 6,726 | 9,378 | -28% | 39,925 | 45,019 | -11% |
| Revenue (₹ Cr) | 175.9 | 141.7 | +24% | 573.1 | 643.9 | -11% |
| Profit Before Tax (₹ Cr) | 133.1 | 514.1 | -74% | 2,147.4 | 4,420.3 | -51% |
| Net Profit After Tax (₹ Cr) | 100.3 | 373.2 | -73% | 2,006.4 | 3,156.5 | -36% |
- Revenue growth was led by a 37% increase in export sales, while domestic sales saw a decline.
- Net profit declined due to higher finance costs, increased depreciation expenses, and fluctuations in inventory valuation.
Operational & Business Updates
Fruit & Vegetable Pulps
- Export shipment backlogs from Q1 and Q2 were cleared in Q3, driving export tonnage growth.
- Domestic call-offs remained slow but saw a rebound towards the end of December.
- The new tomato processing plant is now operating at full capacity, reducing inventory holding periods and improving working capital.
Spray Dried Powders
- Expanded capacity is now fully operational since November 2024.
- Gaining traction in export markets with new client additions.
Frozen Foods
- In-house pastry line for samosas and spring rolls has helped in cost reduction.
- Expanding into HORECA markets (hotels, restaurants, and catering) domestically and internationally.
- Two new production lines will be commercialized by February 2025, doubling the capacity.
Kusum Spices
- Investments in distribution expansion have yet to yield the expected results.
- New marketing campaigns are expected to boost brand recognition.
Tetra Recart Packaging
- New product development and testing are ongoing.
- Onboarding of culinary consultants to align products with international market requirements.
Consolidated Financial Performance
| Particulars | Q3 FY25 | Q3 FY24 | YoY Growth | 9M FY25 | 9M FY24 | YoY Growth |
|---|---|---|---|---|---|---|
| Revenue (₹ Cr) | 192.7 | 151.5 | +27% | 618.9 | 678.9 | -9% |
| Profit Before Tax (₹ Cr) | 78.8 | 521.5 | -85% | 2,007.4 | 4,435.7 | -55% |
| Net Profit (₹ Cr) | 78.9 | 374.9 | -79% | 1,899.5 | 3,149.5 | -40% |
- The consolidated results include subsidiary performances, joint ventures, and associates.
- The share of loss from joint ventures and associates stood at ₹4.6 lakh for Q3 FY25.
Balance Sheet & Debt Position
- Total debt: ₹45,639.6 lakh (₹36,531.8 lakh from bank loans).
- No defaults on loans or debt securities.
- Company has opted for the concessional tax rate of 25.168% from FY26 onwards.
Management Commentary
Milan Dalal, Managing Director of Foods & Inns, stated:Outlook & Strategic Focus
- Improved working capital cycle due to efficient tomato processing operations.
- Expansion of frozen foods with new production lines set to double capacity.
- New product launches in Tetra Recart segment to strengthen brand presence.
- Enhanced marketing for Kusum Spices to improve domestic market penetration.
Conclusion
Foods & Inns Ltd. delivered robust export growth, though domestic sales and net profit declined due to cost pressures and inventory adjustments. The company’s strategic investments in capacity expansion, new product categories, and operational efficiency improvements position it well for future growth.Investors will be keen to watch how the domestic demand rebounds and the impact of new product developmentsin upcoming quarters.