ADF Foods: ADF Foods Ltd (BOM:519183) Q2 FY25 Earnings Call Highlights: Robust Revenue Growth Amidst ...

In This Article: Release Date: October 31, 2024 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Negative Points Q & A Highlights Q : Can you provide an update on the penetration of the Truly Indian and Ashoka brands in overseas markets, and how is the global demand given the current challenges? A : Truly Indian has secured new listings in the US, including Whole Foods, Stop and Shop, and Trader's, totaling about 1,300 stores. Ashoka continues to deepen its market presence by selling more products in existing stores. Demand remains robust despite some shipping challenges, which have started to streamline. Freight costs increased by 2.5% of the topline this quarter but have begun to decrease in October. Q : What was the capacity utilization during the quarter, and how much was spent on brand promotion? A : Capacity utilization was around 70% to 75%, with some products reaching 90%. Brand promotion expenses were about 7% of the topline, up from around 6% YoY. Q : The distribution business margins have increased significantly. Is this sustainable, and what about the rise in employee expenses? A : Distribution margins increased due to better topline and promotional incentives. Sustainable margins should be around 12% to 13% this year. Employee expenses rose due to senior-level hirings for future growth and expansion. Q : What is the current capacity, and what will be added with the new Greenfield plant? A : Current capacity is around 28,000 metric tons. The Surat Greenfield plant will add 6,000 to 8,000 metric tons in its first phase. Q : Are there any specific markets or segments targeted for acquisition, and are there new products expected to launch? A : The company is constantly exploring new product development and is looking to add items to the Truly Indian brand. While always open to acquisition opportunities, there are no current plans. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus .