Q1 FY24 (APR-JUN 2023)

Concall Summary
Date: 17 July 2023
CCL PRODUCTS (INDIA) LIMITED
Revenue: ₹654.9 cr (▲28.6%) Net Profit: ₹60.7 cr (▲15.1%)

FINANCIAL HIGHLIGHTS
PARTICULARS Q1 FY24 Q1 FY23 Change
(₹ cr) (₹ cr) % YoY
Revenue from Operations 655 509 28.6%
Net Profit 61 53 15.1%

 During the quarter, EBITDA and PBT was ~₹106.6 crore and ₹69 crore, respectively.
 In Q1 FY24, the standalone margins remained firm. However, on a consolidated level their margins
decreased due to increase in coffee prices.
 The company had ~₹750 core as working capital loan and ~₹200 crore as long-term borrowings as
on 30th June 2023.
 As on 30th June 2023, the inventory level for the company stood at ~₹550 core.
 The depreciation increased from ~₹17 crore in Q1 FY23 to ~₹22.4 crore in Q1 FY24. Also, the finance
cost rose to ₹14.9 crore in Q1 FY24. These costs are expected to remain at similar levels throughout
the year.

BUSINESS HIGHLIGHTS
 During the quarter, the company witnessed ~18%-20% YoY volume growth in overall business.
 In Q1 FY24, revenue from domestic market was ₹65 crore, of which branded revenue stood at ~₹40
crore.
 Their EBITDA/kg remained at similar levels as compared to Q1 FY23.

UPDATES
 During the quarter, the company started utilizing the new manufacturing facility set up in Vietnam
which is operating at ~50% utilization levels.
 The capacity utilization for their Indian facility was ~85%-90% in Q1 FY24.
 The company purchased different brands from the Löfbergs (company of Denmark) which includes
Percol, Rocket Fuel, Plantation Wharf, and The London Blend. The objective is to leverage their
expertise in B2C (business to consumer) segment and resources to transform the acquired brand
into a ₹100 crore company within the next 3-5 years. The acquired brand is currently generating an
annual revenue of ~₹20 crore.
 CCL PRODUCTS (INDIA) LIMITED
 The FD (freeze dried) capacity of the company for the upcoming year is fully booked as they have
healthy orders to execute.

FUTURE OUTLOOK
 The company will be setting up a ~16,000 metric tonne (MT) of SD (Spray-Dried) coffee
manufacturing facility in India by the end of FY24 and a ~5,500 MT FD coffee manufacturing facility
in Vietnam by Q2 FY25. The cost associated with SD coffee capacity is anticipated to be ~₹400 crore
and for Vietnam FD capacity it would be ~$50 million.
 The management guided that they would reach 1,32,000 outlets by the end of FY24 (currently
1,00,000 outlets) in domestic market for their Indian brand.
 Backed by robust volume growth, the company envisages to increase their market share in B2B
(business to business) from 8% currently to 15% in the coming years.
 The gross debt is anticipated to be ~₹2,000 crore by the end of FY25 due to their capex
requirements for India and Vietnam. Also, they would incur ~₹120 crore as interest cost for the
same.

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Disclaimer:

This document has been prepared to provide a brief summary of the conference call conducted by the companies and is
intended to be used for learning enhancements. Nothing contained herein should be construed as a recommendation on any
stock or sector.