Foods & Inns Limited, one of the largest pioneers of food processing industry in India has announced robust financial numbers in FY22.
According to the release, highlights of the standalone business
Standalone Financials FY22 vs FY21 (Y-o-Y basis)
1. The Revenue from Operations of the Group has increased to Rs 616.49 Crores from Rs 356.57 Crores in FY'21. The Revenue from Operations registered a growth of 73%
2. The Profit after tax (PAT)has increased to Rs 16.02 Crores from Rs 3.89 Crores in FY'21 registering a growth of 312%
3. The Operating Profit has increased to Rs 58.73 Crores from Rs 31.64 Crores registering a growth of 160%
4. The tonnage sold has increased to 78379 Tonnes from 46220 Tonnes in FY'21 registering a growth of 70%
Overall Business outlook (Foods & Inns / Kusum Spices)
The company is working towards improving its EBITDA margins on a sustainable basis by
• Increasing the share of value added and branded products across its food offerings.
• Increasing its operating leverage by producing allied products during non-peak season
• Converting its waste into Value additive products
• Foods & Inns got selected under the Production Linked Incentive (PLI) Scheme of the Govt. of India under Fruits & Vegetables processing category. The selection was under both Component 1 as well as Component 3 of the scheme and the company stands to receive incentives of around Rs 148 Crs on a best-case basis between the period FY'22-23 to FY'26-27 based on future growth in sales and investment as per committed capex.
• As per the scheme guidelines the company has to grow its sales at a minimum CAGR of 10% over FY'22 to FY'27 to receive incentives under Component 1 of the PLI Scheme. The incentives will be payable up to a CAGR of 15% on eligible sales. Under Component 3 of the scheme, the company is expected to get incentives of 50% of its Branding & Marketing expenses incurred abroad over the period FY'22 to FY'26.
• These incentives under both the components will be in the form of direct bank transfers to the company upon achieving yearly milestones as committed under the scheme.
Being the golden jubilee year of the company's operation, the Board has recommended a dividend of 25% for FY'21-22.
Commenting on the successful result, Milan Dalal, managing director, Foods and Inns, said, "We are thrilled to announce the growth numbers. We will continue to strengthen our position and expand into new, untapped markets. We have expanded our portfolio and are working on providing new and diverse products to our customers. With these steps, we feel all stakeholders will be able to see a sustainable growth going forward."
Moloy Saha, cheif executive officer foods and Inns Ltd. further added, "We have made a significant contribution to the worldwide ESG and sustainability movement. We manufacture while protecting the environment's long-term viability and are devoted to zero waste. These are exciting times for Foods and Inns, and we are happy about the progress that is being achieved and the opportunities that are headed our way. With the commercial launch of Tetra Recart and Pectin operations in the near future, we endeavour to change the way business is done. Despite uncertain market conditions, our first priority is to help our workers, partners, and communities get through these difficult times."
Anand Krishnan, chief financial officer, Foods and Inns, commented on the successful result, saying, "We are glad to showcase the robust results which will be our steppingstone to the future. The significant increase in revenue, operating profit and PAT reflect the strength of our operational and industrial position and we are determined to showcase value creation for all stakeholders in coming years as we continue focusing on core value drivers and reducing our carbon footprint in order to generate long-term development."