Hindustan Foods consolidated net profit at Rs10.15cr in Q1FY22

The sales also climbed by 126.37% to Rs457.02cr in the quarter ended June 2021 as against Rs201.89cr during the previous quarter ended June 2020.

August 12, 2021 6:06 IST India Infoline News Service

Hindustan Foods Limited, India’s most diversified FMCG contract manufacturers, announced their un‐ audited financial results, for the quarter ending 30th June 2021.

The net profit of the company jumps 160.93% to Rs10.15cr in the quarter ended June 2021 as against Rs3.89cr during the previous quarter ended June 2020.

The sales also climbed by 126.37% to Rs457.02cr in the quarter ended June 2021 as against Rs201.89cr during the previous quarter ended June 2020.

The stock ended at Rs1,940 up by Rs25.45 or 1.33% from its previous closing of Rs1,914.55 on the BSE. The scrip opened at Rs1,934 and has touched a high and low of Rs1,950 and Rs1,850 respectively.

Key Updates 
  • The second facility at Silvassa set up to manufacture Surface Cleaning Liquid on the back of the  Toilet  cleaning  facility  which  commenced  commercial  production  in  the  previous  quarter,  has  commenced commercial production in May 2021. We expect to ramp up to its rated capacity by  Q2FY22.
  • Project work for Soaps & Bars plant in Hyderabad and the F&B plant in Uttar Pradesh is progressing  as per schedule. Commercial production for both is expected to commence in Q4FY22.
  • The  Shareholders  in  their  Tribunal  Convened Meeting,  pursuant  to  order  of  the Hon'ble NCLT  Mumbai Bench, approved the composite Scheme of Arrangement and Amalgamation Beverage  plant in Mysuru and Malt Beverages plant in Coimbatore. The Final order from the Hon'ble NCLT  Mumbai Bench is awaited
  • We have appointed Sanjay Sehgal as President, Healthcare and Wellness. Sehgal comes with 41  years  of extensive  understanding  and  experience  in  organizations  such  as Hindustan  Unilever,  Sandoz & Hindalco. He is a Graduate from IIT Delhi, and will lead HFL’s foray in Health and Wellness  sector
  • Work for Personal Care / Home Care plant at ATC Beverages is fast progressing. This will be a first  shared  facility and will  offer  shared manufacturing  to  Brands  looking  at  sourcing  in South  and  expanding their footprint there. ATC has also signed a Letter of Intent with a large FMCG company  to start manufacturing their beverages on a dedicated basis. 
Commenting on the results, Sameer R. Kothari, Managing Director said, “Notwithstanding the  fact that the YoY performance is not strictly comparable due to the base effect of the last year’s nation‐ wide lockdown, I am happy to note that we continue to be on a growth path on account of the ramping  up of the new facilities in Hyderabad and Silvassa. We  believe  that  the  underlying  opportunity  in  FMCG  contract manufacturing  is  huge  and we  have  barely  scratched  the  surface  in  terms  of  categories  like  pet  food,  confectionaries,  savories,  color  cosmetics,  deodorants,  etc." 

"Additionally,  we  have  also  started  looking  at  adjunct  sectors  and  are  excited by the Health & Wellness Sector.   Based on this, while we remain confident of achieving our immediate goal of Rs. 2,000 crore revenues  in  FY22,  our  vision  2025  is  to  double  the  turnover  in  next  3  years  by  exploring  both  organic  and  inorganic opportunities,” MD added. 

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