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Conference Call Overview • Date: May 24, 2024 • Purpose: Discuss audited financial results for FY ending March 31, 2024 • Key Executives: • Milan Dalal (Managing Director) • Moloy Saha (CEO) • Anand Krishnan (CFO)
Key Developments • Raymond Simkins becoming a co-promoter, triggering an open offer. • Launch of a tomato pulp product in Hong Kong as a test case for expansion.
Financial Performance • Q4 performance: 20% volume growth despite lower sales. • 40% increase in contracted orders compared to FY23. • Impact of lower raw material prices on revenue despite volume growth.
Challenges and Strategies • Acknowledgment of challenges in achieving anticipated growth. • Increased finance costs due to holding inventory. • Focus on inventory management and selling excess stock in the current financial year.
Future Growth Prospects • Anticipated better performance in Q1 and Q2 driven by a 40% increase in production. • Launch of canned tomatoes in Hong Kong with initial shipments valued at $35,000. • Target of Rs. 1,700-1,800 crores in top line over the next three years.
Capacity and Production Insights • Current capacity allows for expansion without significant capital expenditure. • Sales expectations: Rs. 150 crores in Frozen segment due to new capacity in Gujarat. • Missed Rs. 150 crore tomato order due to capacity constraints and raw material quality.
Financial Metrics and Taxation • Increased tax rate from 25% to around 34% due to higher turnover. • Focus on absolute EBITDA growth rather than percentage margins.
Market Dynamics and Competition • Strong customer relationships and vendor stickiness emphasized. • Competition from large corporates entering the market noted. • Reliance's pricing demands affecting competitiveness but benefiting Coke and Pepsi.
Capital Expenditure and Working Capital • Most CAPEX complete; remaining costs for a tomato processing line in Gonde (Rs. 25-30 crores). • Expectation of improvement in working capital cycle due to increased competition.
Conclusion • Management expressed gratitude to investors for their support and confidence in sustainable growth.
Date and Context • Date of Call: February 2, 2024 • Financial Results: Discussed unaudited results for the quarter ending December 31, 2023.
Key Executives Present • Milan Dalal: Managing Director • Moloy Saha: CEO • Anand Krishnan: CFO
Performance Overview • Recent Challenges: • Muted performance in the last two quarters. • Lower crop availability affecting tomato and guava processing. • Disruptions in export shipments due to geopolitical issues. • Optimism for Future: • Positive trends observed in January. • Ongoing projects like the Pectin project and new client acquisitions.
Future Planning and Volume Guarantees • Confirmed Orders: Assurance of confirmed orders for the next year. • Market Drivers: Anticipation of increased demand due to a good summer and election year. • Contract Flexibility: Many brands opting for three-year contracts to secure volume commitments.
Competitive Landscape • Industry Growth: Overall industry growth expected, with double-digit growth anticipated in the coming quarter. • Capacity Concerns: Management reassured about capacity despite competitive forces.
Investments and Financial Projections • Tetra Recart Facility: Investment of INR 30 crores with projected sales of INR 100 crores and EBITDA margins of 15-18%. • Revenue and EPS: Confidence in maintaining last year's revenue and EPS levels.
Product Development and Growth Strategy • New Product Opportunities: Ongoing exploration of new products, particularly in the beverage segment and Tetra Recart. • Growth Expectations: Targeting top-line growth of at least 13%-15% over the next three years.
Debt and Financial Position • Outstanding Debt: Consistent interest run rate of INR 10 crores attributed to various factors. • Financial Stability: Current liabilities have decreased, maintaining a stable financial position.
Pectin Project and Revenue Expectations • Projected Revenue: Estimated revenues of around INR 15 crores from the pectin project. • Sourcing Logistics: Initial transportation of dried mango peels for processing.
Green Top Business Update • Current Performance: Generating around INR 25 lakhs per month, expanding in Maharashtra and Goa. • Market Strategy: Cautious growth approach with plans for a northern India distribution network.
Domestic vs. Export Realizations • Growth Potential: Optimism about doubling turnover to INR 2000 crores by FY '29.
Conclusion • Management Commitment: Assurance of navigating challenges and maintaining consistency and sustainability. • Investor Engagement: Encouragement for further inquiries from investors and shareholders.
Conference Call Details • Date: November 23, 2023 • Earnings Call Date: November 17, 2023 • Key Executives Present: • Milan Dalal (Managing Director) • Moloy Saha (CEO) • Anand Krishnan (CFO)
Financial Highlights • Discussed unaudited financial results for the quarter and half-year ending September 30, 2023. • CFO noted Q2 performance was muted but emphasized long-term contracts allow flexibility in revenue recognition. • Company received a claim under the Production-Linked Incentive (PLI) scheme.
Business Developments • Joint Venture: Beyond Mango commenced on November 22, 2023. • Product Launches: Focus on new products and participation in trade fairs. • Co-packing Opportunities: Exploring potential partnerships.
Revenue and Inventory Management • Product call-offs determined by clients; contracts span 15-16 months. • Increased debt attributed to working capital tied up in inventory, expected to decrease as inventory levels drop. • PLI scheme revenue accounted for Rs. 10 crores.
Competition and Market Position • Confidence in maintaining a 15% volume growth target. • Discussion on competitors' procurement strategies. • Clarification on share pledges related to the promoter group.
Production Capacity and Diversification • Seasonal nature of industry affects production capacity metrics. • Commitment of 20-25 crores for a new tomato processing line as part of FY24 CAPEX. • Diversification into spray drying noted as a profitable venture.
Sales and Future Projections • Green Top sales reached approximately 15 lakhs per month, doubling since inception. • Anticipated sales pickup starting December. • Pectin project operations expected to begin on November 22, with revenue from March.
Trade Fair Participation • Highlighted interest in Tetra Recart and pectin products. • Conversion of inquiries into sales may take time.
Co-packing and Capacity Utilization • Advanced negotiations for Tetra Recart co-packing opportunities. • Current utilization of Kusum spices at 50-60%, with potential revenue of 50-60 crores.
Inventory and Working Capital • Inventory holding period around six months due to seasonal mango production. • Raw mango is perishable and requires quick processing.
EBITDA Margins and Tomato Puree Business • Margins fluctuate based on volume and operating leverage; no specific margin guidance provided. • Tomato puree project set to begin commercial operations by February 2024, with an investment of 25-30 crores.
Conclusion • The call concluded with gratitude to investors and an invitation for further questions.
Foods & Inns Limited Q1 FY24 Earnings Conference Call Summary
Key Executives and Call Overview • Date of Call: August 10, 2023 • Submitted Transcript: August 21, 2023 • Key Executives: • Managing Director: Milan Dalal • CEO: Moloy Saha • CFO: Anand Krishnan
Highlights of Q1 FY24 • Record Production: Achieved in mango processing. • Future Plans: • Ramp up tomato processing starting October. • Commissioning of a new frozen foods facility in Gujarat. • Challenges: • Spices segment affected by pesticide residue regulations. • Deferred fundraising initiative. • Resignation of co-promoter Mrs. Pallavi Dhupelia.
Financial Performance • Profit Before Tax (PBT): Increased due to higher realizations and operating leverage. • Revenue Growth: Despite a 21% decrease in tonnage, revenue grew by 30%. • Claims: Rs. 9.71 crores under the PLI scheme for FY’22; preparing for FY’23 claims.
Market Position and Product Strategy • Major Clients: Supplies 40-50% of Coca-Cola's Maaza and 20% of Pepsi's requirements. • Revenue Dependency: 82% from mango pulping; goal to reduce to 50-60%. • New Product Launches: Frozen fruits, vegetables, and ready-to-cook items.
Operational Updates • Pectin Project: Slightly delayed, expected launch by September 2023. • Tetra Recart Packaging: Operational since March, promising initial sales. • Capacity Expansion: Ongoing, particularly in tomato processing.
Financial Outlook • Capital Expenditure (CAPEX): Rs. 40-50 crores planned, funded through equity. • Debt Level: Rs. 350 crores, with expectations for improved cash flow. • PLI Benefits: Anticipated around Rs. 20 crores by March 2024.
Market Share and Competition • Revenue Composition: 95% from B2B, less than 5% from B2C. • Competitors: Primarily Jain Irrigation and unlisted players. • Market Trends: 20% of the mango pulping market remains unorganized.
Future Plans and Strategies • Kusum Spices: Aim to establish as a ₹100 crore brand in 3-4 years. • Customer Contributions: Coca-Cola and Pepsi expected to contribute 40-42% and 8-10% of total revenues, respectively. • Pricing Strategy: Focus on gross margin per product; fixed pricing for procured inventory.
Conclusion • Growth Projections: Anticipated 20% volume growth by fiscal year-end. • Investor Relations: Management expressed gratitude for investor support and confirmed no immediate plans for further equity dilution.
Conference Call Overview • Date: May 18, 2023 • Submitted transcript to BSE and NSE on May 23, 2023 • Key executives present: Managing Director Milan Dalal, CFO Anand Krishnan
Company Performance Highlights • Strong performance across various business verticals: • Food processing • Spray-dried products • Frozen foods • Spices • Recent expansions and new product developments discussed • Pectin project aimed at converting mango waste into valuable products
Financial Insights • CFO Anand Krishnan reported extraordinary growth due to: • New brand launches • Expanded distribution • Increased demand for mango and tomato pulp • Anticipated 25-30% volume growth for FY2024 despite weather-related challenges • Plans to diversify product offerings to reduce dependence on mango processing
Shareholder Concerns • AM Lodha raised issues regarding: • Share sales by promoter Mrs. Dhupelia without timely notification • Need for a formal dividend policy due to low earnings distribution • Dalal assured compliance with SEBI regulations and promised to discuss dividend policies with the board
Revenue and Pricing Trends • Revenue breakdown: • 78% from mango processing • Significant increase in tomato sales • Price negotiations typically occur in late summer • Pulp business accounts for about 90% of total revenue
Future Growth and Strategy • Focus on maintaining a minimum 25% stake for the Dalal family amid warrant conversions • Emphasis on growth potential in spices and ready-to-eat food segments • Exploration of capacity expansion in various segments, including pulp and tomato processing
Market Outlook • Positive outlook for the Indian beverage industry with significant investments from major brands • Export realizations have increased by 50%, with stability expected moving forward
Closing Remarks • Anand Krishnan expressed optimism about future growth and encouraged investor engagement • The call concluded with gratitude to investors and an invitation for further questions.
Key Executives and Performance Highlights • Date of Call: February 13, 2023 • Key Executives: • Chairman: Bhupendra Dalal • Managing Director: Milan Dalal • CFO: Anand Krishnan • CEO: Moloy Saha • Performance: Strong growth despite Q3 being historically weak. • Growth Drivers: • Strategic advertising shifts • New product launches • Rural market penetration
Financial Focus and Projections • CFO Insights: • Emphasis on absolute gross margins over EBITDA margins. • Clarified eligibility for PLI scheme incentives based on CAGR. • Sales Projections: • Expected sales volumes of INR 1,700 to 1,800 crores by FY '24 and FY '25.
Product Diversification and Growth Aspirations • Product Mix: • Diversification beyond mango to include guava, papaya, tomato, and garlic. • Significant growth anticipated in non-mango segments, particularly tomato processing. • Future Goals: • Equal contribution from mango and non-mango businesses in four years.
Business Segments and Innovations • Business Segments: • Dried powder, frozen food, and Kusum Spices. • New facility in Nashik for fruit powders operating at full capacity. • New Products: • Introduction of a pectin product line expected to start production in June 2023. • Test marketing of Green Top brand focusing on frozen snacks and vegetables.
Capacity Expansion and Financial Management • Capital Expenditures: • Major capex nearly complete with some spillovers expected by mid-2023. • Committed capex of around INR 78 crores under the PLI scheme. • Future Opportunities: • Open to capacity expansions and M&A, especially in mango pulp.
Market Dynamics and Client Relationships • Tomato Market: • Shift from imports to domestic production. • Experience in contract farming for sourcing tomatoes. • Client Relationships: • Long-standing relationships with major clients like Pepsi and Unilever. • Focus on sustainable practices to attract clients.
Conclusion and Future Outlook • B2B vs. B2C: • Primary focus on B2B with exploration of B2C opportunities. • Profitability Goals: • Efforts to improve profitability through increased volume. • Management's Optimism: • Positive outlook on leveraging domestic and export market opportunities while focusing on capacity utilization and margin improvement.