Dear Shareholders,
I'm delighted to present our Annual Report for FY 2023-24.
As we reflect on the past year and look forward to the future, it is
crucial to recognise the complex global landscape in which we operate. From the recent
pandemic to ongoing geopolitical tensions, supply chain disruptions, and persistent
inflation, the world is facing a period of high uncertainty. Despite initial fears, the
global economy has stood resilient, avoiding a major recession.
The Indian economy has demonstrated exceptional fortitude and
adaptability in the face of global headwinds. The nation has emerged as a bright spot,
achieving an impressive growth of 8.2% in FY 2023-24. Supported by favourable policy
reforms, a thriving capex cycle, and a robust digital infrastructure, India is poised to
lead the next wave of growth. The Government is making significant investments in
infrastructure and providing strong support to the manufacturing sector.
India's consumer market, presents vast opportunities, especially for
the snacks food industry, driven by a young population, a growing middle class, rapid
urbanisation, increasing disposable incomes and rising aspirations. However, sustained
inflationary pressures, spikes in certain raw materials, sharp increases in input costs
and palm oil, a critical raw material for snacks food companies, and slowdown in rural
demand created a soft volatile operating environment over the past year.
Against this backdrop, the Indian snacks food industry has fared
reasonably well. Initiatives such as new offerings, enhanced packaging, and further
expansion of distribution and reach have enabled the industry to penetrate deeper across
the country and capitalise on demand across both urban and rural areas.
PERFORMANCE OVERVIEW IN FY 2023-24
In FY 2023-24, we delivered a resilient performance, despite the
challenging business environment and continued inflationary pressures impacting
consumption trends. Our revenue declined by 2%, amounting to ' 1,61,793 lakhs, compared to
' 1,65,293 lakhs in FY 2022-23. Notably, we emerged as the market leader in the Extruded
Snacks category and achieved robust growth in the Namkeen segment.
Namkeen holds a significant position in the organised packaged snacks
industry, with a market size of 44%. The market for namkeen products is expanding rapidly
due to evolving aspirations, innovative offerings, and increasing disposable incomes,
making it a promising category. In line with this, we plan to expand our namkeen range
with larger pack sizes and strategically target key markets to further capitalise on this
growth opportunity.
We achieved a 17% year-on-year (YoY) increase in gross margin for the
year. EBITDA grew by 126% YoY, from ' 6,243 lakhs in FY 2022-23 to ' 14,099 lakhs in FY
2023-24, registering our highest-ever annual EBITDA in absolute value . I am delighted to
state that we achieved an EBITDA margin of 9.1% in Q4 of FY 2023-24, our highest in the
past 26 quarters.
Our judicious initiatives, including streamlining distribution,
optimising processes, reviewing grammage, and securing long-term contracts, have
significantly improved margins over the last five quarters, bringing them back to and
exceeding pre-COVID levels.
Profit After Tax (PAT) surged from ' 2,031 lakhs to ' 5,312 lakhs in FY
2023-24, marking a growth of 162%. The Board of Directors has recommended a dividend of
40% per share on a face value of ' 5 each, equating to ' 2 per share.
EMBEDDING ESG PRACTICES
We strongly believe that to generate superior long-term value, we need
to look beyond profits and care for all our stakeholders, and above all, the planet and
society. Toward this, we prioritise Environmental, Social and Governance (ESG) practices,
reinforcing our unwavering commitment to sustainability. We strive to enhance our ESG
performance and disclosures to all stakeholders while identifying and addressing
ESG-related risks effectively.
Our people-centric efforts are aimed at creating an inclusive culture
that empowers our employees to grow - both professionally and personally. We also
undertake holistic initiatives in communities to nurture a positive impact on the
marginalised and economically disadvantaged people.
WAY FORWARD
Looking ahead to FY 2024-25 and beyond, our outlook remains positive,
driven by our focus on new product innovations, technology adoption, distribution, and
productivity enhancements. We are well-positioned to leverage our strengths and seize the
burgeoning opportunities in the packaged snacks foods industry. Our strategy is to
continuously innovate and adapt to market trends, ensuring we meet evolving consumer needs
and deliver sustained growth for our stakeholders.
I am grateful to our exceptional team members, customers, consumers,
distributors, suppliers, investors, and other stakeholders who have placed their
unwavering trust and confidence in us.
Warm Regards,
Arvind Mehta
Chairman and Executive Director