Vidhi Specialty Food Ingredients Limited Q4 FY24 Earnings Conference Call Summary
Submission Details
• Date of submission: June 19, 2024
• Conference call date: June 12, 2024
• Compliance: Submitted transcript to BSE and NSE as per SEBI regulations
Key Management Participants
• Bipin Manek: Chairman and Managing Director
• Mihir Manek: Joint Managing Director
• Mitesh Manek: CFO
Company Overview
• Established in 1994
• Leading manufacturer of synthetic food-grade colors
• New plant in Dahej, Gujarat, doubling production capacity
• Revenue from manufacturing: 90% of total revenue
• Commitment to quality and regulatory compliance, especially in exports
Financial Highlights
• Q4 FY24 Results:
• Consolidated revenue: INR 80.6 crores (down 9.9% YoY)
• EBITDA: INR 16 crores (up 31.2%)
• PAT: INR 10.5 crores (up 19.3%)
• Full Fiscal Year Results:
• Total revenues: INR 303 crores (down from INR 404 crores in FY23)
• EBITDA: INR 57 crores (margins improved from 13.8% to 18.8%)
• PAT: INR 36.4 crores (down 3.3%)
• Final dividend declared: INR 1 per share
Production and Capacity Insights
• Production target for FY24: 3,800 metric tons (including 220 metric tons from Dahej)
• Dahej facility expected to reach full capacity by end of FY25 (monthly target: 250 tons)
• Synthetic food color market: 50,000 metric tons annually; Vidhi's projected share: 8,000 metric tons post-expansion
Future Growth and Market Potential
• Potential margin improvement: 500-600 basis points
• Peak revenue potential for Dahej facility: INR 250-300 crores
• Expansion at Roha facility pending environmental approvals
• Anticipated total volume for FY25: 4,600-4,800 metric tons
Working Capital and Operational Efficiency
• Significant improvement in working capital cycle
• Current ratio increased from 2.32 (2021-22) to 4.80
• Reduction in inventory levels due to local sourcing and liquidation of trading stock
Innovation and Market Expansion
• Focus on high-value products contributing 15% to total volume and over 30% to revenue
• New international clients secured, with emphasis on export growth
• Development of specialty inks for various applications
Conclusion
• Management expressed confidence in growth trajectory and operational efficiency
• Invitation for further inquiries through investor relations team