NHC Foods Limited has caught the attention of savvy investors, following the spectacular success of its Rs. 47 crore rights issue. Oversubscribed by an impressive 3x, this milestone underscores the strong market confidence in the company’s growth trajectory and strategic direction. The overwhelming investor response not only highlights trust in the management but also positions the company for a robust performance in 2025.
Strategic Utilization of Proceeds
The proceeds from the rights issue, offered at Re. 1 per share in a 4:1 ratio, are being strategically deployed to strengthen NHC Foods’ financial standing. With plans to boost working capital and repay secured loans, the company is set to enhance its operational efficiency and profitability. This move reflects a forward-thinking approach to optimizing its capital structure and ensuring long-term shareholder value.
Exceptional Financial Growth
The company’s financial performance over the past year has been nothing short of remarkable. NHC Foods posted a net profit of Rs. 405.97 lakh in the first half of FY25, nearly doubling the Rs. 234.74 lakh achieved in the entirety of FY24.
• Quarterly net profit for September 2024 surged by 377% to Rs. 205.08 lakh, compared to Rs. 42.95 lakh in the same period the previous year.
• Revenue for the quarter also rose significantly by 60.25%, reaching Rs. 6639.18 lakh.
• Similarly, June 2024 results showcased a 391% jump in net profit, accompanied by a 73% increase in revenue.
These stellar results reflect the company’s ability to capitalize on market opportunities while maintaining a disciplined approach to growth.
A Leader in Exports
As a 3 Star Export House, NHC Foods’ presence spans over 30 countries, driven by its renowned brands Indi Bite, Eat’mor, and Saaz. These flagship products have fortified its global standing and contributed significantly to its top-line performance. The company’s focus on innovation and diversification ensures a strong foothold in both international and domestic markets.
“The overwhelming response to our rights issue reaffirms the trust our investors have in our vision,” the company management said. “With enhanced financial strength, we are well-equipped to drive growth, expand our global reach, and deliver sustainable value to our shareholders.”
