Any current/future new fundraising through debt or equity?

For FY’25, Foods & Inns Limited does not plan any significant CapEx except for expanding the pastry line by adding a few more lines with an estimated investment of around Rs. 3-4 crores. There is an emphasis on reducing existing debt, but actual debt levels will depend on business growth and raw material prices. No mention of any new fundraising through debt or equity has been made in the call. Current efforts seem focused on optimizing existing capacities and expanding select product lines rather than pursuing fresh large-scale fundraising.

Any current/future capex/capital investment/strategic investment?

Expansion of pastry line: Planning to add two more lines in the immediate future due to strong market response. In the pastry line business, potential to generate over Rs. 100 crore with the addition of 10 lines. Recently imported one pastry machine; targeting installation of two more lines by October or November, followed by five additional lines. Tomato capacity expansion done outside the PLI scheme; capacity to be commissioned in October 2024 to capture larger orders. Pectin project to commence production around late August 2024, converting dried mango peel wastage into pectin. FY

Future growth expectations in sales/revenue/volumes?

Sales growth in mango pulp volumes for FY'25 expected to be similar to FY'24 due to 25% lower processing caused by lower quality raw material availability. Growth expected primarily from tomato and guava categories, benefiting from a good monsoon and doubled tomato processing capacity commissioned in October 2024. Target to expand pastry line with 2 additional lines soon, followed by 5 more, anticipating this business to generate over Rs. 100 crore with good EBITDA margins. Exploration of new geographies for tomato pulp including Russia, Sri Lanka, UK, and earlier exports to Spain indicate geo

Current/ Expected Orderbook/ Pending Orders?

The order book for the mango season is still being processed and is expected to be finalized by end-September or mid-October. Currently, about 80% of the orders are confirmed and booked; the remaining 20-25% are under negotiation. Indicative orders are received at the start of the season, with final rate confirmations happening around August. Due to limited inventory, not all orders received may be fulfilled; only what is in hand will be sold. Order book growth compared to FY24 is expected to be higher. Despite a higher order book, actual sales depend on the pace of call-offs. Some orders, par

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Foods & Inns LtdQ2 FY24Food Products

Foods & Inns Ltd Q2 FY24 Earnings Call Analysis

Q: Future growth expectations in earnings/operating earnings/profits/EPS?

Future Growth Expectations for Foods & Inns Limited: Targeting Rs. 1,600 to Rs. 1,800 crores in sales over the next 2-3 years, with a vision to at least double current revenues. (Page 10) Growth driven by expansion in tomato and guava categories, leveraging good monsoon and increased processing capacity, particularly doubling tomato capacity. (Pages 12-14) The newly launched pastry line shows strong potential; plans for adding 2-5 more lines by late 2024, offering good EBITDA margins and global demand expansion. (Pages 14-16) Export growth opportunities in new geographies including Hong Kong

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹54.2P/E: 14.8Market Cap: ₹462 CrSector: Food Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Sales growth in mango pulp volumes for FY'25 expected to be similar to FY'24 due to 25% lower processing caused by lower quality raw material availability.
→Growth expected primarily from tomato and guava categories, benefiting from a good monsoon and doubled tomato processing capacity commissioned in October 2024.
→Target to expand pastry line with 2 additional lines soon, followed by 5 more, anticipating this business to generate over Rs. 100 crore with good EBITDA margins.
→Exploration of new geographies for tomato pulp including Russia, Sri Lanka, UK, and earlier exports to Spain indicate geographic expansion strategy.
→Frozen category expected to grow globally post-COVID; working on contracts with big brands and supermarkets primarily in the US, UK, Europe, and Gulf countries.
→Limited growth in Tetra Recart segment currently, but product development/testing ongoing; revenue expected to start materializing in FY'25.
→Total sales target remains Rs. 1,600 to Rs. 1,800 crore in the next 2-3 years, with potential acceleration possible.

Margin guidance

Category 3

Future Growth Expectations for Foods & Inns Limited: - Targeting Rs. 1,600 to Rs. 1,800 crores in sales over the next 2-3 years, with a vision to at least double current revenues. (Page 10) - Growth driven by expansion in tomato and guava categories, leveraging good monsoon and increased processing capacity, particularly doubling tomato capacity. (Pages 12-14) - The newly launched pastry line shows strong potential; plans for adding 2-5 more lines by late 2024, offering good EBITDA margins and global demand expansion. (Pages 14-16) - Export growth opportunities in new geographies including Hong Kong (branded), Russia, Sri Lanka, UK, and Spain. (Pages 13-14) - Pectin production expected to start by late August 2024, adding a new revenue stream. (Page 10) - Focus on sustainability and working capital management to reduce debt and support profit growth. (Pages 12,18) - Operating margins and EPS expected to benefit from favorable product mix and cost efficiencies, although raw material price volatility remains a pass-through factor. (Page 10)

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Fundraise plans

→For FY’25, Foods & Inns Limited does not plan any significant CapEx except for expanding the pastry line by adding a few more lines with an estimated investment of around Rs. 3-4 crores.
→There is an emphasis on reducing existing debt, but actual debt levels will depend on business growth and raw material prices.
→No mention of any new fundraising through debt or equity has been made in the call.
→Current efforts seem focused on optimizing existing capacities and expanding select product lines rather than pursuing fresh large-scale fundraising.

Order book

Yes

→The order book for the mango season is still being processed and is expected to be finalized by end-September or mid-October.
→Currently, about 80% of the orders are confirmed and booked; the remaining 20-25% are under negotiation.
→Indicative orders are received at the start of the season, with final rate confirmations happening around August.
→Due to limited inventory, not all orders received may be fulfilled; only what is in hand will be sold.
→Order book growth compared to FY24 is expected to be higher.
→Despite a higher order book, actual sales depend on the pace of call-offs.
→Some orders, particularly in tomato processing (around Rs. 150 crores from last year), were deferred due to previous capacity constraints but can now be taken due to increased capacity.
→There is a rough Rs. 9.8 to 10 crores of deferred sales from earlier quarters, mostly related to export shipments delayed by shipping constraints.

Capex plans

Yes

→Expansion of pastry line: Planning to add two more lines in the immediate future due to strong market response.
→In the pastry line business, potential to generate over Rs. 100 crore with the addition of 10 lines.
→Recently imported one pastry machine; targeting installation of two more lines by October or November, followed by five additional lines.
→Tomato capacity expansion done outside the PLI scheme; capacity to be commissioned in October 2024 to capture larger orders.
→Pectin project to commence production around late August 2024, converting dried mango peel wastage into pectin.
→FY’25 CapEx planned is modest, approximately Rs. 3-4 crores, primarily for pastry line expansion.
→No major CapEx planned beyond these; focus is on expanding existing lines and product categories.

How does Foods & Inns Ltd rank vs peers in Food Products?

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