Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Some statements in this discussion may be forward looking. Actual performance may however, differ from those stated in the management discussion and analysis on account of various factors such as changes in Government regulations, tax regimes, impact of competition, competing products and their pricing, product demand and supply constraints.
The purpose of this discussion is to provide an understanding of financial statements and a composite summary of performance of Future Consumer Limited ("Company") and the eco-system in which it is operating.
Management Discussion and Analysis is structured to comprise:
Business and Operational Overview
Risks, Threats and Internal Adequacy
Review of Consolidated Financial Performance ECONOMIC OVERVIEW
International Monetary Fund (IMF) reaffirmed India as the worlds sixth largest economy - pegged at $2.6 trillion for 2017 in the World Economic Outlook for 2018. While the major economies of the world continued to witness slowdown during the year under review, economic growth in India has remained resilient. Indias GDP is forecasted to grow at 7.4% in 2018 up from 6.7% in 2017 supported by resurgent net exports and strong private consumption and is expected to touch 7.8% in 2019, making India one of the fastest growing economies in the World. At this rate, the IMF projects that India is poised to cross the $3 trillion mark surpassing UK, to enter the top 5 major economies of the World. The robust strategy of economic development of the current Indian Government has created a positive outlook for India.
There are continued clear signs of demand recovery post the short term disruptions. Demand is back on track as a result of Government efforts towards reviving the manufacturing sector with initiatives such as Make in India, supported by moderate inflation rates, favorable monsoons, lower commodity prices, increased FDI investments and growth in urban markets, with rural markets following the trend. Initiatives such as demonetization and GST implementation are expected to lead to formalization of the economy which should benefit the modern trade. India is at an inflection point with various new opportunities unfolding such as massive young workforce, rapid urbanization, political and economic stability and key structural reforms.
India is home to one of the largest young population in the World, population that is aspiring, growing, earning, spending and consuming a whole range of products and services, expanding the opportunity for all stakeholders in the market to carve a niche for themselves. Indias Food & Home and Personal Care ("HPC") industry is pegged at ~$300 billion in
2017 and is expected to grow at a CAGR of 11% to ~$500 billion over the next five years with organized segment growing at a CAGR of 20% over the same period. The Food & Beverages sector contributes over ~92% of the overall market. The staples and pulses segment is highly unbranded, creating a huge opportunity. Indian consumption sector is largely divided into urban and rural markets, attracting companies from across the World. The rise in income along with the rise in growing youth population and rural consumption is expected to drive growth. The low current penetration in rural markets offers an attractive opportunity for growth to major food and HPC companies.
The Indian Retail market, is estimated to grow at a CAGR of ~9% to reach $1.1 trillion by FY20 from $840 billion in fiscal year 2017, with modern trade poised to grow at 20-25% per annum which will translate into higher revenues for food and HPC companies, focusing on modern trade. Demand for packaged and branded goods is rising in India, which is a huge untapped market.
India is an ancient food culture with deeply entrenched habits and preferences. As we are all aware of the saying, "You are what you eat", India interacts with food in a very unstructured and multi-textured way. Indian homes and personal care regimes are highly influenced by cultures and beliefs that go back thousands of years. With the vast unbranded and under penetrated opportunity currently existing across categories, the Company has successfully introduced FMCG 2.0 with aim of attracting the new age consuming generation.
BUSINESS AND Performance OVERVIEW
The Company continues to focus on the "FMCG 2.0" for the "Fast Moving Consumer Generation", building brands that nourish, excite, allow one to indulge and build a healthier future.
During the year under review, the Company has established its presence as a new age food and HPC company for a new era with operations ranging from sourcing, manufacturing, branding and distribution, striking a widespread cord between the lives of the farmers, a factory labourer, a worker on the shop floor and the house wife. The Company continues to strengthen its position as an integrated food and HPC company by building a strong portfolio of food and HPC brands that speak, react and respond to the rhythm of the Fast Moving Consumer Generation, allowing for a multi-prolonged engagement with our consumers. This portfolio comprises over two dozen innovative brands and is well supported by two key pillars viz. strong distribution network for supplies to over 103,000 stores across India and expertise in the fields of sourcing and manufacturing.
It has always been the Companys endeavor to develop and build brands to acquire lifetime value of todays Fast Moving Consumer Generation. Each of the product is developed after a detailed product research and development process supported by rich consumer insights.
Centre of Plate
The Company has a wide portfolio of brands that cater to all the everyday essentials for the Indian kitchen. The brand
Golden Harvest leads the Centre of Plate category achieving the milestone of crossing 1,000 crore in sales during the fiscal 2018. Golden Harvest Prime extended its portfolio with the launch of high quality super foods such quinoa, pearl millet, black rice, jasmine rice etc. During the year under review, the Company launched its first organic, all natural, pesticide free brand Mother Earth, offering pulses, spices, rice and sugar along with the launch of a dedicated rice brand, Shubra, offering 99.5% fat free alternatives. The brand Sangis Kitchen has extended its portfolio with the launch of authentic spices such as Coriander, Kashmiri Chilli, Turmeric Powder and a range of essential herbs and seasonings. Bringing all the real flavors of India to your plate, brand Desi Atta has significantly scaled up its offerings with around 50 variants of the tastiest and healthiest flours and ready mixes from almost all regions of the Country.
Processed Foods and Dairy
The Companys processed foods category comprises of indulgence focused brands and innovative products, including fusion foods such as Peri Peri Bhujiya and Schezwan Chutney to surprising new flavors of green tea and beverages, fresh twists in dairy and bakery products to home and beauty solutions that combine the Indian wisdom and international know-how.
During the year under review, the brand "Tasty Treat" became Companys 1st processed food brand to cross 100 crore in sales. "Tasty Treat", a brand which stimulates the indulgence, the drool factor and the mindless munching, now boasts of a wide range of products, which include new age namkeens, ready- to- eat snacks, pop-corns, beverages with an Indian twist, wafer-biscuits, sauces, frozen snacks and much more. However, the highlight of fiscal year 2018, was the launch of Tasty Treat biscuits and cookies range, competing with the best brands in the market in terms of taste and quality.
In the fiscal year 2018, the Company launched products in several value-added and high margin categories. These products are well positioned to command higher price point as they incorporate unique tastes and preferences of the Indian palate such as wafflets, kettle chips and popcorn under the brand, "Pooof!". The brand "Karmiq" achieved one of the biggest milestones during the year under review by touching ~ Rs. 50 crore sales in dry fruit category.
The Company has also extended its exciting range of fusion drinks under the brand "Sunkist" with the launch of Zesty Tomato and 5 other flavors in time for the summer season. The Company has further introduced the idea of healthy snacking with the launch of tasty and healthy flavored oats in four delicious savory and two sweet flavors under its brand "Kosh".
The Company continues to explore new products and categories which will enable high growth coupled with higher profitability.
Home & Personal Care
The Company has successfully launched new brands as well as undertaken extension of its existing brands by identifying new areas of consumption. During the year, the look & feel of "CleanMate", Companys largest brand in the HPC space was revamped to a more uniform architecture. The brand "CleanMate" further forayed its journey into the range of home cleaning products with the launch of bathroom cleaner. Further the brand "CleanMate" also featured in Bollywood superstar Akshay Kumars movie, Toilet, Ek Prem Katha and created a fund, Swachh Bharat Kosh. This gained a lot of traction for CleanMate and helped achieve record sales of ~ 70 Crore during the fiscal year 2018.
Furthermore, understanding the self-cleansing regimes of the Indian consumer, the Company relaunched its brand "Think Skin" body wash in attractive packaging and fragrances at a disruptive price proposition. The brand is available in 5 new variants Lemon Fresh, Aqua Flash, Wild Rose, Sandal Clear and Active Sports. With the new launches, the visual identity of "Swiss Tempelle" was also revamped to make it look more contemporary and Product of Switzerland was reinforced on the packaging. All Swiss Tempelle products are Paraben Free.
The brand "Kara" has scaled through the insights of evolving woman and their need for Beauty-on-the-go, from refreshing wipes and skin care wipes to face masks and nail polish removers. Kara continued to display a strong growth trajectory during the year under review, achieving over Rs. 25 crore in brand sales, exhibiting more than 3x growth since acquisition. Kara wipes help restore beauty with the goodness of all natural skin friendly active ingredients such as Neem, Aloe-Vera etc. and are made from 100% viscose fiber with high moisture absorption capacity. "Kara" has significantly increased penetration across general trade and modern trade to over 32,000 outlets from 20,000+ outlets over last year. The brand expanded its footprint from ~86 towns in FY16 to ~164 towns in fiscal year 2018.
The Company introduced a new personal care brand "TS", offering grooming tools and accessories with a distinct character that openly glorifies vanity, not hide it, and revels in its outcome. The brand "TS" provides the most effective and efficient products that fuel a desire for making every day glamourous. The exaggerated bursts of product colors infuse energy in the idea of self-grooming.
The Company has revamped its lifestyle home fragrances brand, Pratha, offerings a range of incense sticks and various other products that aid while worshiping, meditation and relaxing in unique blends of soothing fragrances, which help reduce stress and enhance overall well-being.
The Company has ventured into the baby care products category with the launch of "Puretta", with a promise to cater to all the needs of a new born baby. "Puretta" is targeting the huge untapped potential in the baby care category which includes baby care accessories, feeding and nursing products like feeding bottles, sippers, baby grooming range, baby dining accessories, etc. These products are ISI and BIS certified, built with highest quality standards, made from 100% Food Grade Plastic, BPA Free, are safe and non-toxic for the babies.
The Company continues to expand its distribution network across various channels for a direct and swift engagement with majority of consumers via disintermediation. The Company has established a vast distribution network comprising ~103,000 stores across various formats and channels with the aim to increase penetration of its products across leading modern and general trade channels. The Companys partnership with the Government of Rajasthans Public Distribution Network has now an access to over 6,100 Fair Price Shops. Leveraging its partnership with Indo Nissin in financial year 2016-17, the Company has unlocked potential access to nearly 2 lakh touchpoints. The Company tapped into new modern trade formats such as HyperCity, WHSmith, Foodworld and Heritage.
Sourcing & Manufacturing
The Company has one of the leading agri-sourcing operations in the Country with access to over 88 locations across India and 7,000 farmers. The harvest is processed at one of the 29 mechanized processing centers of the Company for further grading, quality checks, processing, and packing and distributed through 37 distribution centers to modern and general retail outlets in almost 100 cities across India. The Fruits and Vegetable business handles over 600MT of produce daily, sourced through 23 collection centers and 1,710 registered farmers, distributed through 15 distribution centers.
The Companys subsidiaries, joint ventures and associates play a vital role to complete the overall offering. The Company has entered into various joint ventures to support its foray into manufacturing across various new age categories. These entities largely support the Company via offering manufacturing capabilities, infrastructure and strong brands. The Company has partnered with LT Foods, amongst the leaders in packaged rice, to set up a milling and processing plant for rice and Hain Celestial, one of the manufacturer of natural and better-for-you products, amongst others. Majority of the manufacturing facilities have been set up at the India Food Park and commenced operations in the last 2-3 years. As the products manufactured in these facilities are in the initial phase, there exists a significant unutilized capacity to support the ramp up of these categories.
AWARDS AND RECOGNITIONS
During the year under review, the "Tasty Treat Firangi Bhujiya TVC" won Bronze at the Foxglove Awards 2017 while Swiss Tempelle won the "Best Use of Social Media" award for "#GetSwissed" campaign at the Digital Industry Awards 2017. Furthermore, Golden Harvest won the No. 1 Basmati Rice award by "Jaago Grahak Jaago". "Desi Atta" won the Golden Spoon Awards for the IMAGES most admired food innovation of the year - Ingredients, Products and Processes.
Performance of Subsidiary, Joint Venture and Associate companies:
1. Aadhaar Wholesale Trading and Distribution Limited ("Aadhaar")Aadhaar, a wholly owned subsidiary of the Company, is in the business of rural and semi-urban wholesale and distribution of fast moving consumer products and general merchandise. It is actively pursuing wholesale distribution and franchisee models in this segment. Aadhaar also has an access to ~6,100 Fair Price Shops in Rajasthan. With capital inflows expected in backend infrastructure, linkages with rural markets are expectedto be stronger. In the coming year, Aadhaar intends to build wholesale centers which facilitate effective access to General Trade. Aadhaar has already started a pilot wholesale center at Nadiad, Gujarat. For the fiscal year 2018, Aadhaar has registered revenues of 306.15 crore.
2. The Nilgiri Dairy Farm Private Limited ("Nilgiris")With origin in 1905, Niligiris is a leading dairy and bakery brand in South India with a franchisee network of ~210 stores. The brand Nilgiris has grown to become a household name in the south India with consumers spanning successive generations. The brand has a unique portfolio, supported by manufacturing facilities for dairy categories. Nilgiris also has franchisee operated chain of convenience stores with a strong presence in urban centers across Indias southern states. Nilgiris has registered consolidated revenues of Rs. 230.10 crore for the fiscal year 2018.
The subsidiaries of Nilgiris are mentioned as below:
a) Appu Nutritions Private Limited
b) Nilgiris Mechanised Bakery Private Limited
c) Nilgiris Franchise Private Limited
During the year, Nilgiris Mechanised Bakery Private Limited and Appu Nutritions Private Limited outsourced their bakery related manufacturing operations to a third party.
3. Bloom Food and Beverages Private Limited, formerly known as Bloom Fruit and Vegetables Private Limited ("Bloom")
Bloom, a wholly owned subsidiary of the Company, is predominantly engaged in the business of trading in all types of fruits and vegetables. Bloom has registered revenues of Rs. 211.67 crore for the fiscal year 2018.
4. Integrated Food Park Private Limited ("IFPPL")
IFPPL, a subsidiary of the Company, has in partnership with the Ministry of Food Processing Industries, Government of India, set-up a state-of-the-art India Food Park facilitates which provides end-to-end food processing along the value chain (grading, sorting, pulping, packaging & distribution) from the farm to the market. Equipped with world-class food processing units comprising of 70,000 tonne storage capacity, cold storage unit and in-house pulping, dehydration and frying and roasting line, IQF, milling, flouring, spice and dal units, this massive park is spread across 110 acre land at Tumkur region in Karnataka. IFPPL is home to several food processing firms where it enables them to work through a single window system. At present, IFPPL houses 21 operational manufacturing units. IFPPL also houses other facilities such as effluent / sewage treatment plant, central canteen, meeting and conference rooms, office cabin, micrology lab and research and development lab. After fiscal year 2018, the Company has increased its stake in IFPPL to 99.93% by acquiring the entire equity shares held by Capital Foods Private Limited. IFPPL has registered revenues of 19.54 crore and EBITDA of Rs. 8.42 crore for the fiscal year 2018.
5. Aussee Oats Milling (Private) Limited ("Aussee Oats")
Aussee Oats operates a state-of-the-art "oats based" breakfast cereals manufacturing facility (EOU - Export Oriented Unit) in Sri Lanka through a Joint Venture initiative with SVA India Limited and the Company. The Company holds 50% plus one ordinary share of Aussee Oats. Aussee Oats predominantly focuses on manufacturing and sale of a range of breakfast cereals such as mueslis, oats, cornflakes, wheat flakes and many more variants. The finished products are targeted to be sold by Aussee Oats in various countries such as India, Sri Lanka, Pakistan, Nepal, Bangladesh, Bhutan etc. Aussee Oats has registered revenues of Rs. 26.65 crore for the fiscal year 2018 (converted into Indian Rupees at the exchange rate of USD 1= Rs. 65.04).
6. Aussee Oats India Private Limited ("Aussee Oats India")
Aussee Oats India is engaged in the business of selling, importing, exporting and processing primarily oats and oats based products in India. The Company holds 50% plus one equity share of Aussee Oats India. Aussee Oats India has registered revenues of 17.14 crore for the fiscal year 2018.
7. Sublime Foods Private Limited ("Sublime Foods")
Sublime Foods is engaged in the business of manufacturing convenient food products such as sauces, chutneys, condiments, dressings and mayonnaise for Companys brand - "Sangis Kitchen". The manufacturing unit has been set up by Sublime Foods at the India Food Park, Tumkur, which mainly which produces dips and sauces such as sweet, chilli garlic, schezwan, mayonnaise, tamarind (imli), coriander & mint and Italian classic arrabiatta and alfredo. It has capabilities to produce other variety of such food products such as jams, jellies, confectionery fillings, different types of cheese and few dairy products. These products are made in equipment imported from Italy with an automated manufacturing system to ensure safety and hygiene standards. The Company owns 51% stake in Sublime Foods. Sublime has registered consolidated revenues of 14.36 crore for the fiscal year 2018.
Avante Snack Foods Private Limited ("Avante Foods")
Avante Foods is a subsidiary of Sublime Foods is engaged in the business of manufacturing, processing, branding, packaging, warehousing and dealing in items in snack food category, fried chips of various fruits and vegetables, nuts and seeds based snacks, dehydrated fruits and vegetables snacks, extruded snacks made from rice and other grains and other food products. Avante Foods manufactures food products such as kettle Chips under the brand Pooof! from facility set up at India Food Park, Tumkur.
Avante Foods has registered revenues of Rs. 3.32 crore for the fiscal year 2018.
8. MNS Foods Private Limited ("MNS Foods")
MNS Foods, a subsidiary of the Company is engaged in the business of manufacturing and trading of all kinds of wafer biscuits, chocolate enrobed wafer biscuits,confectionaries, bakery, cookies, pastries, cereals foods, canned foods, lemon drops, extruded foods, tinned fruits, preserved foods, nutrients, vegetables, fruits, jams, pickles, sausages, diet foods, toffees, chocolates and packaging activities. During the fiscal year 2018, MNS Foods has commenced its operations for manufacturing of Tasty Treat wafer biscuits and Pooof! wafflets from its manufacturing facilities set up at India Food Park, Tumkur. The Company holds 50.01% stake in MNS Foods. MNS Foods has registered revenues of 13.78 crore for the fiscal year 2018.
9. Future Food and Products Limited ("FFPL") and Future Food Processing Private Limited ("FFPPL")
FFPL and FFPPL have been set-up with the objective to focus on establishment of food processing units. These entities are in the process of setting up necessary infrastructural facilities at Nagpur.
10. Future Consumer Products Limited ("FCPL")
FCPL is involved in the business of product development, designing, branding and distribution of FMCG products under the brand "Sach". "Sach" is a co-created brand in association with the iconic cricketer Sachin Tendulkar, which establishes an emotional connect with young consumers.
11. FCEL Overseas FZCO ("FCEL Overseas")
FCEL Overseas has been set up in UAE to undertake the business of dealing in furthering exports of range of Companys products.
12. FCEL Food Processors Limited ("FCEL Food Processors")
FCEL Food Processors, a wholly owned subsidiary, has diversified its objects to carry on the business of manufacturing, processing, branding, packaging, warehousing, and/or otherwise dealing in food products. FCEL Food Processors is yet to commence operations.
13. Amar Chitra Katha Private Limited ("ACK")
ACK is a subsidiary of the Company, which is predominant for holding oldest content brands. Within its ambit ACK owns the flagship brands Amar Chitra Katha and Tinkle. It has basket of 400+ titles and over 100 proprietary characters. It is an established leader in the under 15 age group with diverse product offerings in various formats that are compatible to new media platforms.
ACK also has a licensing arrangement with National Geographic Society, USA for publishing National Geographic Magazine and National Geographic Traveller in India. Both these magazines are well received in the Indian market.
The subsidiaries of ACK, as mentioned below, are engaged in the business of media & entertainment and distribution and support ACK to achieve its objectives:
a) ACK Media Direct Limited
b) IBH Books & Magazines Distributors Limited
c) Ideas Box Entertainment Limited
ACK has registered total income of Rs. 30.68 crore for the fiscal year 2018.
Joint Venture Companies:
1. Mibelle Future Consumer Products A.G. ("Mibelle")
The Company entered into a joint venture arrangement with Swiss based Mibelle A. G., a division of Migros Group, amongst the largest consumer goods company in Central Europe, by forming a 50:50 joint venture company under the name Mibelle Future Consumer Products AG at Switzerland. The brand Swiss Tempelle launched a variety of body wash and lotions and is further extending the range, during the year under review. The brand Swiss Tempelle generated revenues of ~ 7.00 crore
2. Genoa Rice mills Private Limited ("Genoa")
Genoa is a 50: 50 joint venture with LT Foods Limited, amongst the leaders in the packaged rice space, undertaking the business of manufacturing and distribution of rice and with an objective of developing the first national brand outside the Basmati rice space. Genoa is engaged in the business of processing, marketing and distribution of rice and has set up its milling and processing plant at India Food Park, Tumkur.
3. Hain Future Natural Products Private Limited ("Hain")
Hain is a 50:50 joint venture with Tilda Hain India Private Limited. Tilda Hain India Private Limited is part of Hain Celestial Group Inc., a leading organic, natural and better-for-you products and is listed on NASDAQ. Hain Celestial Group participates in almost all natural categories with nearly 57 brands. The JV has launched the Soya milk brand Dream, during the year under review and introduced brands and products comprising Terra vegetable chips, Garden of Eatin Tortilla chips, Dream rice etc manufactured at the India Food Park.
The food and HPC market has been characterized by the presence of both national, regional and small domestic players. The HPC segment has seen creation of multiple brands over the years, however, the food and beverages market remains largely unbranded and fragmented.
The Company believes in building products customized and relevant to todays fast moving consumer generation. The Company focusses on customer centricity and in doing so has developed a strong portfolio of brands with wide range of products. The Company is well positioned to benefit from its continuous endeavor to expand distribution channels, enhance its sourcing expertise and focused marketing initiatives. The Companys focus on modern trade and significant potential of the Future Group network also provides the Company with an edge as the consumer rapidly upgrades to the modern trade.
RISKS, THREATS AND INTERNAL ADEQUACY
The industry in which the Company operates has some inherent risks such as ever changing consumer demand, competitive intensity and cost volatility. This requires identifying, monitoring and mitigating risks predominantly in the areas of business, operations, finance and compliance.
The Company has Enterprise Risk Management (ERM) Policy in place. The aim of this policy is not to eliminate risk but to assist the Company personnel to manage the risks involved in all the activities to maximize opportunities and minimise adverse consequences.
Key Features of ERM Policy are:
Identifying and taking opportunities to improve performance as well as taking action to avoid or reduce the chances of something going wrong
A systematic process that can be used when making decisions to improve the effectiveness and efficiency of performance
Accountability in decision making
Risk Committee Meeting is held once in every 6 months wherein all the critical risks along with current mitigation plans identified during the period are presented to the Board members. This ensures all the critical risks are covered and suitable mitigation plans are in place or needs to be implemented to overcome /avoid the risk to ensure controls are operating effectively.
In the current financial year, w.e.f. Q318 the Company has appointed KPMG as Internal Auditors. We expect this engagement to assist to help us in setting industry bench mark and drive to implement best industry practice within our organization.
The Audit Committee reviews adequacy and effectiveness of the internal control process and systems and monitors the implementation of audit recommendations, including with the perspective of strengthening the risk management systems of the Company.
Human resource is the most vital factor to achieve the goals of the Company. Being a progressive organization, your Company firmly believes in its vital assets - People.
To gain a competitive edge in a highly dynamic industry, your Company continues to focus on progressive employee relation policies and creating an inclusive work culture with strong talent pipeline. Several initiatives are being implemented by the Company across its operations to strengthen talent management, capability development and performance management processes. These initiatives has been giving positive impact on talent attraction, retention and commitment. The Company has in place a variety of measures to engage the employees and ensure career progression, helping employees move from their current level to a higher level. As on 31st March, 2018, there were 1,603 permanent employees in the Company.
REVIEW OF CONSOLIDATED FINANCIAL PERFORMANCE
The financial statements have been prepared in accordance with Indian Accounting Standards and the relevant provisions of the Companies Act, 2013 and Rules made thereunder, as amended/ re-enacted, from time to time, as applicable. The financial performance of the Company for the year under review is not comparable to the previous financial year on account of acquisition of various subsidiaries and associates in the previous and current year.
The Company has recorded a revenue from operations of Rs. 3,005.01 crore and EBITDA profit of Rs. 66.40 crore in the year under review as against an income from operations of Rs. 2,115.84 crore and EBITDA profit of Rs. 20.69 crore in the previous year. During the year under review, Net Loss, stood at Rs. 25.98 crore, narrowed by Rs. 35.02 crore.
SUMMARY OF CONSOLIDATED INCOME STATEMENT
|Particulars ( cr)||FY18||FY17|
|Revenue from Operations||3,005.01||2,115.84|
|Cost of Goods Sold||2,597.44||1,827.20|
|Gross Margin (%)||13.6%||13.6%|
|Employee Benefit Expense||125.81||97.80|
|Depreciation and amortization expense||45.48||32.61|
|Profit / (Loss) Before Tax||(11.52)||(42.74)|
|Share of Profit / (Loss) in Associates & JVs*||(16.96)||(17.37)|
|Deferred Tax (Expenses) / Credit||2.50||(0.89)|
|Net Profit / (Loss) for the Year*||(25.98)||(61.01)|
*Attributable to owners of the company Revenue from Operations
During the year ended 31st March, 2018 (fiscal year 2018), the Company recorded consolidated Revenue from Operations of Rs. 3,005.01 crore, an increase of 42.0% over previous year Revenue from Operations of Rs. 2,115.84 crore. Revenue from Operations consists of income from sale of products and other operating income by the Company and its subsidiaries.
Cost of Goods Sold
Cost of goods sold primarily includes costs in relation to purchases of finished goods and raw materials and other cost. During fiscal year 2018, our overall Cost of Goods Sold grew by 42.2% accounting for 86.4% of our Revenue from Operations for both fiscal year 2018 and fiscal year 2017.
Employee Benefit Expense
Employee cost include salaries and bonuses to our employees, ESOP charges, contributions to provident funds and other funds as well as staff welfare expenses. During fiscal year 2018, Employee Benefit Expense grew 28.6% over the previous year and accounted for 4.2% and 4.6% of our Revenue from Operations for fiscal year 2018 and fiscal year 2017, respectively.
Other Expenses primarily include expenses towards payment of rent, power, water and fuel, advertisement, publicity and selling expenses, travelling expenses, legal and professional charges etc. Our Other Expenses accounted for 7.6% and 8.6% of Revenue from Operations for fiscal year 2018 and fiscal year 2017, respectively. Our overall Other Expenses for fiscal year 2018 grew by 25.7% over fiscal year 2017.
Finance Costs primarily consisting of interest on working capital loans, fixed loans and term loans stood at Rs. 52.68 crore in fiscal year 2018.
Depreciation and Amortization Expense
For the year, Depreciation and Amortization expense has increased from Rs. 32.61 crore in fiscal year 2017 to Rs. 45.48 crore in fiscal year 2018. The increase is primarily on account of increase in fixed asset base and one time impairment of FCPL.
Profit after Tax
Loss for fiscal year 2018 was 30.64 crore, an improvement of 53.2% over fiscal year 2017.
summary of balance sheet
|Assets ( cr)||FY18||FY17|
|Fixed Assets Including Intangibles||979.03||933.56|
|Other Non-Current Assets||29.52||25.88|
|Total Non-Current Assets||1,079.19||1,027.08|
|Cash & Bank Balances||44.75||47.54|
|Other Current Assets||181.32||117.29|
|Total Current Assets||943.26||664.71|
|Equity and Liabilities ( cr)||FY18||FY17|
|Other Non-Current Liabilities||89.14||100.11|
|Total Non-Current Liabilities||399.28||254.30|
|Other Current Liabilities||154.25||189.05|
|Total Current Liabilities||623.69||541.19|
|Total Equity and Liabilities||2,022.45||1,691.79|
As on 31st March, 2018 (fiscal year 2018), Shareholders Funds of the Company amounted to Rs. 999.48 crore (fiscal year 2017: Rs. 896.30 crore).
As on 31st March, 2018, the Net Working Capital of the Company amounted to Rs. 478.10 crore, this included Rs. 224.24 crore (fiscal year 2018: 175.73 crore) of Inventories, 492.95 crore (fiscal year 2017: 324.15 crore) of Trade Receivables and 239.09 crore (fiscal year 2017: 167.93 crore) of Trade Payables.
SUMMARY OF DEBT
As on 31st March, 2018, the Companys Gross Debt stood at Rs. 617.65 crore comprising Non-Current Borrowings of Rs. 310.14 crore, Short-Term Borrowings of Rs. 230.35 crore and Current Maturities of Long-term Borrowings of Rs. 77.16 crore (fiscal year 2017 Gross Debt: Rs. 471.43 crore; Non-Current Borrowings: 154.19 crore; Short-Term Borrowings: 184.21 crore and Current Maturities of Long-Term Borrowings: 133.03 crore) and Cash & Cash Equivalents stood at Rs. 44.75 crore (fiscal year 2017: 47.54 crore)