Jeyyam Global Foods Ltd Management Discussions

COMPANY OVERVIEW

Incorporated on 24th March 2008, Jeyyam Global Foods Limited [GJFL] is a fast-growing, certified player in the chana-processing sector and is Head Quartered in Gopalapuram Chennai. It has achieved strong financial growth and is branching into B2C markets. While our strategy relies heavily on a few products, regions, and clients, the we are solid in our niche with ambitions for national expansion backed by ISO-certified facilities and integrated supply chain. JGFL has built a robust internal structure rooted in strong corporate governance, with a well-diversified Board comprising experienced professionals, including independent directors and a woman director, in compliance with statutory requirements. The companys strategic transformation from a private to a public limited entity marks a significant milestone, enabling greater transparency and growth opportunities. With a dedicated focus on the Chana (Bengal Gram) value chain, backed by integrated operations and deep domain expertise, the Company is well-positioned for pan-India expansion.

(a) Industry structure and developments.

Jeyyam Global Foods operates in the Indian pulses-processing sector, producing chana (Bengal gram), fried gram, and besan flour. This industry is maturing with growing health-conscious consumer trends and rising institutional demand (hotels, supermarkets, wholesalers). Government initiatives focusing on agriculture and food processing infrastructure are supportive, while heightened competition and shifting consumer preferences represent ongoing structural shifts. Company has built a robust internal structure rooted in strong corporate governance, with a well-diversified Board comprising experienced professionals, including independent directors and a woman director, in compliance with statutory requirements. The companys strategic transformation from a private to a public limited entity marks a significant milestone, enabling greater transparency and growth opportunities. With a dedicated focus on the Chana (Bengal Gram) value chain, backed by integrated operations and deep domain expertise, the Company is well-positioned for pan-India expansion.

(b) Opportunities and Threats.

Opportunities

• Using IPO proceeds Company has substantially reduced the external debt and this has resulted in better management of working funds.

• The processed pulses market is growing across retail and institutional buyers. Company hopes to have better market share.

• Continued encouragement and policy support for agro-processing can lower capex and compliance hurdles.

Threats

• With RM cost being almost 90% of the COGS for the FY 2025-26, price swing, adverse climatic conditions resulting in low yield of agricultural produce can directly affect margins.

• FY 2025 margin remained low and is likely to remain same in 2025-16 also.

(c) Segment-wise or product-wise performance.

JGFL focuses solely on pulses processing (besan, fried gram, black chana) and hence there is not much to discuss on segment breakdown. Total revenue for the year stood at Rs 762.00 crore as against Rs 630.00 crore in 2024. Net profit during 2025 increased by 47% over the previous year. The revenue surge is driven by both volume and realization improvements, with expansion likely to sustain segment growth.

(d) Outlook

With capacity expansion by Q1 FY 2026 and steady demand in food processing, JGFL is positioned for further momentum. If raw material costs are managed and economies of scale realized post-expansion, profit margins could gradually improve above current levels (~3%). Sustained volume growth remains critical.

(e) Risks and concerns.

• Raw Material Risk: Seasonal availability and price fluctuations.

• Execution Risk: Timely completion and integration of new capacity.

• Macroeconomic Risk: Inflation, supply chain issues, and rural demand dynamics.

• Governance Risk: Previously noted concerns relating to promoter interests have been proactively addressed through the appointment of an independent and professional Board, strengthening oversight and decision-making transparency

(f) Internal control systems and their adequacy.

The Company has instituted robust internal control mechanisms commensurate with its size and nature of operations. These systems ensure accurate financial reporting, compliance with laws, and effective asset safeguarding. With the induction of a professional Board and an independent Audit Committee, internal controls have been further strengthened, with regular monitoring and risk-based internal audits in place. Risk mitigation measures are actively monitored through a structured internal control framework that ensures compliance, operational efficiency, and financial accuracy. These controls, guided by ISO 9001:2015 and ISO 22000:2018 certifications and FSSAI regulations, are periodically reviewed to ensure adequacy and effectiveness. Overall, Jeyyams disciplined approach, customer-centric innovation, and resilient control systems collectively reinforce its long-term sustainability and stakeholder value creation

(g) Discussion on financial performance with respect to operational performance.

Operational efficiency and demand-side tailwinds have contributed to strong financial performance:

• Revenue growth of 21% YoY driven by volume and pricing.

• Margins improved despite inflationary input costs due to scale and sourcing discipline.

• Net profit margin rose to 2.9% in FY 2024-25.

• Interest coverage and debt profile remained stable, allowing room for planned capex.

• The return on capital employed (ROCE) and return on equity (ROE) are expected to improve further with new plant utilization.

(h) Material developments in Human Resources / Industrial Relations front, including number of people employed.

No material developments.

(i) details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

Particulars	24-25	23-24
Debtors Turnover	11.41	19.50
Inventory Turnover	13.31	11.39
Interest Coverage Ratio	4.07	3.43
Current Ratio	2.64	1.51
Debt Equity Ratio	0.42	1.20
Operating Profit Margin (%)	4.77%	4.49%
Net Profit Margin (%)	2.90%	2.40%

 

Ratio	Unit of Measurement	31-03-2025	31-03-2024	Variance
Current ratio1	In multiple	2.64	1.51	74.99%
Debt- Equity Ratio2	In multiple	0.42	1.20	-64.67%
Debt Service Coverage Ratio3	In multiple	1.41	1.12	25.30%
Return on Equity ratio4	In Percentage	13%	19%	-29.85%
Trade Receivable Turnover Ratio5	In multiple	11.41	19.50	-41.47%
Trade Payable Turnover Ratio6	In multiple	121.59	93.38	30.21%
Net Capital Turnover Ratio7	In multiple	10.22	20.99	-51.32%
Return on Capital Employed8	In Percentage	19%	26%	-26.68%

Reasons for Variance more than 25%

increase in Current Ratio is due to decrease in short term borrowings in the current year ²Decrease in Debt-Equity Ratio is due to increase in equity as shares were issued in the current year

increase in Debt-Service Coverage Ratio is due to increase in EBITDA in the current year ⁴Decrease in ROE is due to increase in equity as shares were issued in the current year ⁵Decrease in Trade receivables Ratio is due to increase in debtor balance in current year ⁶Increase in Trade Payable Turnover Ratio is due to decrease in trade payable in the current year

7Decrease in Net Capital Turnover Ratio is due to increase in trade receivables in the current year

8Decrease in ROCE is due to increase in equity as shares were issued in the current year

(j) details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.

The increase in Return on Net Worth from 13.2% in FY 2023-24 to 18.81% in FY 2024-25 is primarily attributable to improved operational efficiency, higher sales volume with better price realization, and effective cost optimization measures. These efforts have collectively enhanced profitability and strengthened overall financial performance during the year.

	For Jeyyam Global Foods Limited
Place: Chennai	Bhaskara Chakkera
Date: 25th July 2025	Managing Director
	DIN: 02106379