Hindustan Foods Limited earns Rs 2,762cr revenue in fiscal year 2024


Hindustan Foods Limited (HFL), a diversified FMCG contract manufacturer, has announced its audited financial results for the fiscal year ending March 31, 2024. The company has shown a significant increase in financial metrics, with a 6% rise in revenues and substantial growth in both EBITDA and PAT.

Hindustan Foods Limited Annual and Quarterly Financial Highlights

For the fiscal year 2024, HFL’s revenues climbed to Rs 2,761.9 crores, up from Rs 2,602.6 crores in FY23, marking a 6% increase. The EBITDA for the year saw a 29% increase, reaching Rs 228.9 crores, up from Rs 177.7 crores in the previous year. Profit After Tax (PAT) also grew by 31%, from Rs 71.1 crores in FY23 to Rs 93.0 crores in FY24.

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In the fourth quarter of FY24 alone, HFL reported revenues of Rs 734.4 crores, an 11% increase from Rs 660.7 crores in Q4FY23. EBITDA for the quarter grew by 28% to Rs 64.0 crores, and PAT increased by 13% to Rs 22.9 crores.

Key Business and Strategic Updates

HFL has been actively expanding its manufacturing capabilities across India:

– The new juice factory in Guwahati, Assam, commenced production on schedule with a capital expenditure of approximately Rs. 20 crores.

– Plans for a new ice cream factory in Kundli, Haryana have expanded, with the expected capital expenditure rising from Rs. 100 crores to about Rs. 150 crores.

– Additional investments include Rs. 50 crores for expanding the Hyderabad plant, Rs. 40 crores in the Colour Cosmetics plant in Silvassa, and Rs. 20 crores for the ice cream plant in Lucknow.

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– The Mysuru Beverage plant turned around in FY24 due to strong seasonal demand.

– After acquiring KNS Shoetech and the Baddi factory, HFL faced challenges with the integration and regulatory requirements, particularly at the Baddi unit.

Management Commentary and Future Outlook

Sameer R. Kothari, Managing Director of HFL, commented on the integration challenges and the strategic moves made by the company: “This quarter has been a testament to the fact that the hard work for M&A starts after the transaction is completed… 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.”

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Mayank Samdani, Group CFO, noted the impact of the acquisitions on the company’s finances: “The company has posted a record EBITDA of Rs. 64.0 Crores for the quarter… However, the slow ramp-up of Baddi factory due to licensing and other regulatory issues did not result in commensurate revenues, thereby impacting the PBT and the PAT for the quarter.”

Despite these challenges, HFL remains committed to achieving a revenue target of Rs. 4,000 crores for FY25, underscoring its strategic initiatives and resilience in navigating operational complexities.

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