BSE grants in-principle approval to NHC Foods for Rights issue upto Rs. 49 Crores Funds to bolster the growth of the company
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Leading exporter of agricultural commodities, NHC Foods Limited (NHC) has received in principle approval from the Bombay Stock Exchange (BSE) for proposed right issue upto Rs. 49 crores. This strategic initiative underscores the company’s commitment to enhancing shareholder value and also fortifying its financial position for sustainable growth.
“The company is on a high growth trajectory, and we are very buoyant on the outlook. The proceeds of the Rights Issue will be used to meet working capital requirements and repay some secured loans, thus leading to increased profitability.”, said Mr. Apoorva Shah, Chairman & Managing Director of NHC Foods.
For the quarter ended June 30, 2024, the company’s Net Profit has increased by 391% to Rs. 200.88 lakhs. This has been a commendable performance from the company, considering its Net profit for the year ended 31st March FY2024 was Rs. 234.74 lakhs.
For the quarter ended June 30, 2024, NHC Foods registered Revenue growth of 75% to Rs. 7366.12 lakhs and EBITDA growth of 94% to Rs. 336.40 lakhs.
NHC Foods has emerged as a global leader in exporting agricultural commodities including Spices, Food grains, Oil Seeds, Pulses and Dry Fruits to 30+ countries across Middle East and Europe including USA, UK, China, Russia, Brazil and South Africa.
At the recently concluded AGM of NHC Foods, Mr. Apoorva Shah informed shareholders that company has chalked out plans for expansion, diversification and is also investing in digital technology for long term sustainable growth. In his speech, Mr. Shah said “Our export sales turnover in FY 23-24 increased by 26% compared to FY 22-23. Therefore, we plan to have geographical diversification expanding into new international markets to enhance global presence, which will also help reduce market risks. We are also planning to strengthen our foothold in the Indian market through targeted strategies and product innovations.”
On the Company’s diversification and Digital transformation and Sustainability agenda, Mr. Shah said “We will be introducing diverse product offerings like ready-to-cook spices and seasoning mixes. We are also developing organic and health-focused products to cater to health-conscious consumers. NHC is planning to contribute to E-commerce growth by enhancing its online presence and logistics to reach to more global and domestic consumers” As a socially responsible company, NHC is promoting eco-friendly solutions and sustainable farming to align with environmental goals”
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