Ovobel Foods Reports 27.5% Revenue Surge in Q1, Net Profit Remains Stable

Ovobel Foods Limited has announced its financial results for the first quarter, showcasing a significant increase in revenue while maintaining stable profitability.

Revenue Growth

The company reported net sales of ₹6,067.91 lakhs for Q1, marking a substantial 27.5% increase from ₹4,759.02 lakhs in the same quarter last year. This growth demonstrates Ovobel Foods' strong market position and increased demand for its products in the food industry.

Profit Performance

Despite the impressive revenue growth, Ovobel Foods' net profit remained relatively flat at ₹274.68 lakhs, compared to ₹275.30 lakhs in Q1 of the previous year. However, it's worth noting that this represents a decline from the previous quarter's profit of ₹584.86 lakhs.

Key Financial Metrics

• Operating Profit: The company's operating profit before other income and finance costs stood at ₹311.39 lakhs, up from ₹255.02 lakhs year-over-year, indicating improved operational efficiency.
• Cost of Materials: The cost of materials consumed increased to ₹4,101.11 lakhs from ₹3,618.74 lakhs in the corresponding period last year, reflecting the higher production volume.
• Earnings Per Share (EPS): EPS remained stable at ₹2.90, consistent with the same quarter last year.

Financial Results Overview

Management Commentary

The Board of Directors approved these unaudited results. The company continues to operate in the food industry as its single reportable segment, as stated in the notes to the financial results.

Additional Financial Information

• Other income for the quarter stood at ₹112.48 lakhs, compared to ₹153.40 lakhs in the same quarter of the previous year.
• Finance costs increased to ₹54.99 lakhs from ₹34.25 lakhs in the same quarter last year.
• The company's total expenses for the quarter were ₹5,756.52 lakhs, up from ₹4,504.00 lakhs in the corresponding period of the previous year.

Ovobel Foods Limited's Q1 results demonstrate the company's ability to significantly grow its revenue while maintaining profitability in a challenging market environment. The substantial increase in sales suggests strong demand for the company's products, although increased costs have impacted the bottom line. Investors and analysts will be watching closely to see how the company manages its growth and costs in the coming quarters.