Foods & Inns

- Currently, there are no active plans for new equity fundraising; a recent planned fundraise has been deferred as the opportunity did not materialize. - Previous equity warrants issued in December 2022 are in process, with investors partially converting them into equity; full subscription expected by June 2024. - Future equity raising will depend on value-accretive opportunities arising in the market. - Regarding promoter shareholding, there are plans being considered with a timeline until June next year; no dilution is expected from these promoter plans as they may be non-dilutive. - No specific mention of new debt fundraising; existing working capital needs are supported by increased production, leading to increased working capital borrowings and finance costs, but no new debt plan announced. - Overall, fundraising activities are opportunistic and contingent on market conditions and value propositions.

- Foods & Inns plans a total CAPEX of around Rs. 40-50 crores for the current fiscal year, already funded through equity. - For FY25, no major CAPEX planned except for spray drying capacity expansion and tomato processing plant. - The company expects a minimum asset turnover of around 3x from the current CAPEX investments. - A tomato concentrate plant is planned, expected to start production from October. - The pectin manufacturing project is slightly delayed but expected to start by end of September 2023. - Expansion in export markets (e.g., for Kusum spices) to mitigate export risks and diversify. - Strategic focus on launching new SKUs (6 ready-to-cook SKUs under Tetra Recart packaging) and increasing presence in frozen fruits and vegetable segments. - Exploring opportunities for copacking with large brands, targeting revenue growth from Q4 FY24 onwards.

- Volume growth for the current fiscal year is expected around 15% to 20% on an annualized basis, although Q1 was impacted by unseasonal rains and the beverage industry's slower growth. (Page 13-14) - Company remains hopeful to recover substantially in the next 8-9 months and regain the anticipated growth trajectory. (Page 14) - Revenue growth is driven by increased production, especially a 40% higher mango pulp production than the previous season, which will be dispatched over 12-15 months. (Page 7) - Realization per kg is expected to vary with mango varieties, some higher and some lower, balancing overall revenue. (Page 13) - Expansion into other fruit and vegetable pulps is targeted to reduce dependency on mango pulp from 85% revenues closer to 50-60% in the coming years. (Page 6) - New product launches like Tetra Recart and ready-to-eat categories expected to add to future revenues, with trials and commercial scaling ongoing. (Page 9) - Asset turns for new CAPEX projects anticipated at around 3x to boost revenue growth. (Page 12)

- The company expects volume growth of around 15% to 20% annually, though Q1 saw some weather-related setbacks impacting volume recovery. - Revenue growth is anticipated through increased realizations in mango pulp, especially for varieties like Alphonso with premium pricing. - Operating cash flow is expected to turn positive this year due to lower raw material prices compared to last year. - The company aims for an asset turnover ratio of about 3x on new CAPEX of Rs. 40-50 crores, indicating good revenue growth potential from investments. - Profit before tax benefits from increased volumes, operating leverage, and price pass-through models, which stabilize margins. - Expansion into tomato processing and pectin production by late FY24 is expected to contribute to earnings growth. - PLI (Production Linked Incentive) benefits of around Rs. 20 crores are expected by March 2024, providing additional earnings support. - Overall, growth in earnings and profits is linked to volume expansion, product diversification, and improved operational efficiency.

- The company operates with long-term contracts, typically 12 to 15 months in duration, especially during the mango season. - Larger brand customers, including Fortune 500 companies, honor their committed orders without fallback. - Revenue recognition depends on the timing of customer call-offs rather than order cancellations; orders are fulfilled as per contract schedules throughout the year. - At present, the company has confirmed orders in hand, but precise volume/ revenue estimates for the full fiscal year are difficult to provide due to variability in customer call-off timing. - Post Q2, the company expects to have better clarity on estimated annual volumes based on order execution trends.