Foods & Inns Limited — Results, 20-05-2025: Integrated Filing- Financial

Foods & Inns Ltd. has announced a board meeting on May 27, 2025.

1) Revenue Performance: Consolidated total income stood at ₹1,004.62 Cr, down 2.1% YoY. Revenue from operations slipped 1.9%, affected by lower domestic and export volumes. The fruit & vegetable pulps segment rebounded strongly domestically in Q4, while the frozen food business posted robust 35% growth for FY’25, fueled by demand and capacity expansion in Gujarat.

2) Profitability and EPS: Consolidated net profit rose 14% to ₹41.92 Cr, while EPS dropped to ₹5.92 from ₹6.82, reflecting increased share capital post equity dilution. Profit before tax decreased from ₹64.41 Cr to ₹49.78 Cr. Margins were pressured by rising finance costs and raw material volatility; however, gains in frozen foods and branded segments partially offset these effects.

3) Operational Costs: Material costs remained steady around ₹754.99 Cr. Inventory build-up impacted working capital. Employee expenses increased due to expansion and inflation, reaching ₹48.80 Cr. Finance expenses surged to ₹58.15 Cr, linked to higher borrowings. Other costs grew alongside investments in capacity and innovation.

4) Key Metrics: Depreciation rose to ₹20.72 Cr, reflecting ongoing capex. Spray dried powders operate at full capacity, with expansion plans underway. A dividend of 30% (₹0.30/share) signals management’s confidence in cash flows.

5) Balance Sheet / Cash Flow Health: Total borrowings stay elevated at ₹407.37 Cr but stable. Operating cash flow improved to ₹15.24 Cr, offset by ₹29.73 Cr capex mainly on greenfield projects. Cash balances are negative due to overdraft usage. Equity infusion of about ₹96.4 Cr via warrant conversion strengthened the capital base.

6) Management Outlook: Growth is expected from frozen foods and spray dried powders capacity expansion. The company targets new export markets for Tetra Recart and RTE products, supported by product innovation and partnerships. Incentives and subsidies are being pursued for additional support.

Final Takeaway: Foods & Inns delivers steady revenue with standout frozen food growth. Margin pressures from finance costs and inventory are concerns, but capacity expansions and diversification offer growth avenues. Dividend payout supports confidence amid investment phase. Investors should monitor progress on new capacities and export market traction for upside potential.