Mrs. Bectors Food Specialities (BECTORFOOD) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue and PAT in Q2 FY25, with consolidated net revenue of Rs 496.3 Cr (up 19.7% YoY) and PAT of Rs 38.9 Cr (up 4.4% YoY), driven by robust performance across business verticals.

• Board approved unaudited consolidated and standalone financial results for the quarter and half year ended 30 September 2024.

• H1 FY25 net revenue reached Rs 935.7 Cr, up 18.6% YoY, with EBITDA at Rs 134.5 Cr and PAT at Rs 74.4 Cr.

• Macroeconomic headwinds included subdued consumption due to extreme weather, elections, and inflation, especially in urban markets.

• Export business continued to grow, contributing to higher freight costs but with full cost recovery from customers.

Financial highlights

• Q2 FY25 consolidated revenue: INR 496 crore (up 19.7% YoY); EBITDA: INR 71 crore (up 9% YoY); EBITDA margin: 14.2%; PAT: INR 39 crore (up 4.4% YoY); PAT margin: 7.8%.

• H1 FY25 revenue: INR 936 crore (up 18.6% YoY); EBITDA: INR 135 crore (margin 14.4%); PAT: INR 74 crore (margin 7.9%).

• Gross profit margin for Q2 FY25 was 47.3%.

• Basic EPS (consolidated) for Q2 FY25 was ₹6.56, up from ₹6.33 in Q2 FY24.

• Net debt to equity remained low at 0.2 as of Mar 2024.

Outlook and guidance

• Annualized revenue growth guidance maintained at mid to high teens; EBITDA margin guidance at 14%-15%.

• Temporary margin pressure expected due to commodity inflation, but normalization anticipated in subsequent quarters as price increases are implemented.

• Focus on augmenting distribution, capacity expansion, and new product development to drive future growth.

• Expansion into new geographies and product categories, with a vision to be a pan-India player.

• QIP proceeds to be used for debt repayment, project expansions, and general corporate purposes.