NHC Foods Limited, one of India’s prominent exporters of agricultural commodities, has reported a remarkable 391% surge in net profit for the quarter ended June 30, 2024. This phenomenal growth in profitability has prompted the company to announce a Rights Issue aimed at raising capital for expansion and loan repayment. With its sights set on future growth, the company continues to strengthen its position both domestically and globally.

For the quarter ending June 2024, NHC Foods’ net profit soared to Rs. 200.88 lakhs, a substantial leap from previous earnings. Revenue for the same period grew by 75%, reaching an impressive Rs. 7366.12 lakhs, while EBITDA experienced a 94% rise, reaching Rs. 336.40 lakhs. According to Apoorva Shah, Chairman & Managing Director of NHC Foods, the proceeds from the Rights Issue will be primarily utilized to meet working capital needs and repay secured loans, thereby increasing the company’s profitability.

The company has positioned itself as a global leader in the export of spices, food grains, oil seeds, pulses, and dry fruits. With a presence in over 30 countries, including the USA, UK, China, and South Africa, NHC Foods has earned a reputation for high-quality standards. In recognition of its contribution to exports, the Government of India has awarded NHC Foods the prestigious “Three Star Export House” status, further cementing its standing as a trusted exporter.

Apoorva Shah revealed at the company’s recent Annual General Meeting that NHC Foods has laid out ambitious plans for expansion. The company intends to diversify its offerings, with plans to introduce ready-to-cook spices and health-focused products. It also aims to strengthen its footprint in the domestic market, which has seen significant growth in export sales over the past year. The company is expected to further explore new international markets to mitigate market risks.

NHC Foods is also preparing to embrace digital transformation. Shah highlighted the company’s intent to bolster its online presence and e-commerce capabilities, a move designed to drive future growth and enhance distribution to global and domestic customers alike. The company is also committed to sustainable farming practices and eco-friendly solutions, aligning its growth with environmental goals.

This recent surge in profits, combined with the planned Rights Issue, signals strong investor confidence in NHC Foods. The company’s focus on innovation, sustainability, and market expansion is expected to pave the way for even greater success in the coming years.

NHC Foods’ decision to announce a Rights Issue following its significant profit growth demonstrates a proactive approach to expansion. The move to repay secured loans will free up resources, improving the company’s cash flow, while the focus on geographical diversification could help mitigate risks associated with market fluctuations. Furthermore, the company’s strategic investment in digital transformation will likely further strengthen its position in the increasingly competitive global market.

  Apoorva Shah, Brazil, BSE Limited, China, Directorate General of Foreign Trade, Government of India, Middle East, Mumbai, NHC Foods Limited, Russia, South Africa, Three Star Export House, UK, USA