Ice cream major Vadilal Industries has reported a 14 per cent jump in net profit to Rs 16.33 crore in FY 17 against Rs 14.35 crore in FY 15-16. The company’s total income rose to Rs 482.34 crore in FY 16-17 against Rs 456.43 crore in FY 15-16.
The EBIDTA margin stood at 11.68 per cent in FY 16-17 against 12.91 per cent in FY 15-16. The domestic sales of the Ice Cream Division (including Dairy Products) rose to Rs 419.07 crore in FY 17 against Rs 398.65 crore in FY 16.
“We have seen strong growth in export market since last couple of years. Healthy export growth has improved our realizations and margins this year compared to last year. Going forward, the export market is likely to further grow. In the domestic market, margins have improved due to rise of impulse buying and good response to higher margin products like Gourmet, Flingo and Bada Bite all introduced two years back. With actress Parineeti Chopra as our brand ambassador, advertising campaigns have also received good response,” said CMD, Vadilal Industries Ltd, Rajesh Gandhi.
The company has a recommended dividend of Rs 1.25 per share for the year ended March 2017.
Vadilal has also expanded its capacity from 175,000 liters per day to 230,000 liters per day over the past one year.
“Going forward, we target to grow our capacity from 2,10,000 pieces per hour to 2,70,000 pieces per hour. In addition to market expansion and value addition in the product profile, we will continue to focus on improving our debt leverage and cash flow generation. We remain focused on building a respected brand that is preferred by consumers in India and targeted overseas markets to deliver value,” Gandhi said.
“Revenues for processed foods have declined this year based on our decision to focus on higher margin products. However, revenue for processed foods is likely to grow next year onwards as high margin products replace low-margin we continue to focus on branded products and are looking to further expand volumes domestically and in target key export markets to deliver improved performance. Our processed foods distribution channels are also being successfully used to sell dairy products in key global geographies,” he added.