Hindustan Foods Limited Q4 FY24 Earnings Call Summary
Conference Overview
• Date: May 22, 2024
• Focus: Discussion of Q4 FY24 earnings and company strategies.
Key Highlights from Managing Director Sameer Kothari
• Integration Efforts: Successful integration of Baddi unit and KNS Shoetech.
• Market Challenges: Facing sluggish FMCG demand and price deflation.
• Diversification: Expanding into ice creams and beverages to address challenges.
• Demerger Exploration: Board authorized exploration of a potential demerger for a Nashik factory.
• Optimism for Growth: Despite current declines, optimistic about future product offerings.
Operational Updates by Executive Director Ganesh Argekar
• Stable Performance: Operational stability across factories despite input material deflation.
• Record Production: Seasonal product factories achieved record levels.
• New Facilities: Guwahati juice factory operational; Kundli ice cream factory CAPEX increased.
• Expansion Investments: Approved expansions in Hyderabad, Silvassa, and Lucknow.
Financial Results Presented by Mayank Samdani
• Revenue Growth: 6% increase to 2,761 crores for FY24; 11% rise to 734 crores in Q4 FY24.
• Profit Growth: EBITDA up 29% and PAT up 31% for FY24.
• Regulatory Delays: Impacted revenue expectations at the Baddi factory.
• Financial Health: Debt-to-equity ratio at 1.06X; ROE at 18.2%.
Investor Inquiries and Responses
• Sales Potential: Kothari refrained from quantifying individual unit sales due to confidentiality.
• Margin Expansion: Attributed to deflationary trends rather than specific product categories.
• CAPEX Increases: Higher CAPEX for ice cream facility due to customer-driven scope increases.
• Cash Conversion Cycle: Currently around 26 days; shoe business may require more working capital.
Strategic Insights
• Manufacturing Preferences: Kothari emphasized the importance of dedicated manufacturing for brand owners.
• Outsourcing vs. In-house: Differing views on outsourcing; Kothari supports flexible manufacturing solutions.
• Future Investments: Plans to invest 400 crores in ice cream production across two plants.
Challenges and Outlook
• Consumption Trends: Recent difficulties in customer sales leading to idle capacities.
• Debt Management: Aiming to maintain a 1:1 debt-to-equity ratio for future investments.
• Projected Turnover: Targeting 4,000 crores in sales for FY25, with contributions from new projects.
Conclusion
• Cautious Optimism: Highlighted resilience and promising outlook for FY24, particularly in footwear and ice cream sectors.
• Focus on Long-term Metrics: Emphasis on ROE and ROCE over top-line figures for future growth.

Hindustan Foods Limited Earnings Conference Call Summary
Date and Purpose
• Date: February 9, 2024
• Purpose: Discuss Q3 and 9-month results for FY '24
Key Executives
• Managing Director: Sameer Kothari
• Financial Performance: Reported by Mayank Samdani
Growth Strategy
• Diversified Product and Customer Base: Aids in navigating market challenges
• Gross Block Increase: Fivefold growth, exceeding INR 1,000 crores
• Recent Acquisitions:
• Manufacturing unit in Baddi for OTC products
• Sports shoe facility in Haryana
• Future Expansion Plans: Continued investments in FMCG and adjacent sectors
Financial Highlights
• Q3 FY '24 Performance:
• Revenue: INR 730 crores (8% QoQ, 7% YoY increase)
• EBITDA: 29% growth to INR 164 crores
• PAT: 38% increase to INR 70 crores
• Nine-Month Performance:
• Revenue: INR 2,027 crores (4% increase)
Operational Updates
• Integration of New Units: Baddi and KNS Shoetech expected to normalize by Q1 FY '25
• Employee Growth: Approximately 1,000 new employees, including 400 from Baddi
Investment Insights
• Recent Investments:
• INR 100 crores in an ice cream plant
• INR 128 crores in Baddi
• Projected Turnover: Over INR 4,000 crores by FY '25
• Return on Equity (RoE) Target: 20-21%, with potential for higher returns in the shoe business
Operational Timeline
• Investment Ramp-Up:
• Most investments expected to ramp up in FY '25, except ice cream factory (Q4)
Home and Personal Care (HPC) Business
• Growth Potential: Significant opportunities in FMCG despite slow volume growth
• Utilization of Gross Block: INR 200 crores still to be ramped up
Sports Shoe Business
• Expected Returns on Capital Employed (RoCE): Anticipated better returns compared to existing operations
• Gross Block Target: Increase to INR 1,800 crores by FY '26
Sustainability Initiatives
• Commitment to Sustainability: Solar power, cleaner fuel, energy conservation, and local labor employment
Conclusion
• Flexible Investment Strategy: Pursuing both large and small investments in contract manufacturing
• Encouragement for Further Inquiries: Participants invited to ask more questions.

Hindustan Foods Limited Earnings Conference Call Summary
Date and Leadership
• Date: November 9, 2023
• Led by: Managing Director Sameer Kothari and key executives
Financial Performance Highlights
• Q2 and H1 FY24 Results:
• Revenue: Rs. 1,297 crores (H1 FY24) vs. Rs. 1,262 crores (H1 FY23)
• EBITDA: Increased by 29% to Rs. 106 crores
• PAT: Increased by 42% to Rs. 48 crores
• Q2 FY24 Revenue: Rs. 677 crores
• Q2 FY24 EBITDA: Grew by 26% to Rs. 55.6 crores
• Q2 FY24 PAT: Increased by 31% to Rs. 24.7 crores
Strategic Initiatives
• Fundraising: Plans to raise Rs. 400 crores through warrants for expansion in sports shoe and beverage sectors.
• Acquisitions:
• Acquiring KNS Shoetech for sports shoe production.
• Progressing on a juice manufacturing facility in Assam, expected to start by Q4 FY24.
Management Insights
• Market Challenges: Acknowledged FMCG demand slowdown and down trading impacts.
• Growth Drivers: EBITDA growth driven by new site commercializations and M&A contributions.
• Funding Utilization: Part of the funding will come from debt; ongoing investments in various categories.
Capital Expenditure and Projects
• CAPEX:
• Work-in-progress CAPEX for FY24: Approximately Rs. 350 crores.
• Total gross block as of September 30, 2023: Rs. 915 crores.
• Ongoing Projects:
• Rs. 25 crores investment in Guwahati juice project.
• Rs. 8-10 crores investment in Mysore beverage facility.
Future Outlook
• Sales Target: Confirmed sales target of Rs. 4,000 crores for FY25.
• Expansion Plans: Focus on footwear sector growth and addressing demand issues in carbonated drinks.
Sustainability Commitment
• Emphasis on renewable energy, eco-friendly practices, and community development projects in Telangana.
Conclusion
• The call concluded with an invitation for further inquiries and well-wishes for the upcoming year.

Hindustan Foods Limited Q1 FY24 Earnings Conference Call Summary
Key Executives Present
• Sameer Kothari (Managing Director)
• Mayank Samdani (Group CFO)
Q1 Performance Overview
• Subdued Quarter: Slowdown in FMCG demand impacted capital expenditure and expansion.
• Optimism for Future: Early signs of recovery in customer volume noted.
• Financial Highlights:
• Profit After Tax (PAT): Increased by 16% quarter-on-quarter and 57% year-on-year.
• Revenue: Rose 4% to ₹620 crores.
• EBITDA: Increased by 33%.
Revenue Target and Growth Drivers
• Revenue Target: Remains at ₹4000 crores for the next year.
• Key Growth Drivers: Delayed Baddi project and ramp-up of the bar project expected to support volume growth.
Acquisitions and Investments
• Shoe Production: Increased demand for domestic manufacturing, but overall market stress noted.
• Scholl Acquisition: Performing well; exploring new product categories.
• Debt Level: Approximately ₹475 crores.
Strategic Plans and Sustainability
• Acquisition Strategy: Open to larger acquisitions, particularly with dedicated contracts.
• Sustainability Commitment: Focus on reducing transportation and integrating backward into production processes.
Financial Metrics and Projections
• Target ROE: Aiming for pre-tax ROE of 16% to 22%.
• Effective Tax Rate: Expected to remain around 21%.
Market Insights and Future Outlook
• Volume Growth: Anticipated return, but too early to confirm a trend.
• Carbonated Drinks: Will remain a contract manufacturer focusing on PET bottles and tetra packs.
• Private Label Manufacturing: Confirmed as a growth avenue, but not expected to dominate soon.
Community and ESG Initiatives
• Commitment to ESG: Efforts to reduce greenhouse gas emissions and improve energy efficiency.
• CSR Initiatives: Focus on community well-being through partnerships with non-profits.
Closing Remarks
• Emphasis on the importance of community and health, with thanks to participants.