Indrayani Biotech Limited (IBL) clocked a strong growth trajectory in FY23 with consolidated revenues of Rs 167 crore, as compared to revenue of Rs 62 crore in FY22. FY23 turned out to be a transformational year, with revenue growth of 171%. EBITDA margins also showed an upward trend. Indrayani reported consolidated EBITDA of Rs 21.7 crore in FY23 (margin 13%) as compared to EBITDA of Rs 7 crore (margin 11%).
IBL now has significant operations in its subsidiaries, Dindigul Farm Products (DFPPL), a value added milk derivatives business it acquired in Q1FY23.
IBL’s standalone Results mainly reflect the food and hospitality business under the brand A-Diet Express.
Revenues were up 29% y-o-y to Rs 75.1 crore in FY ’23 from 58.2 crore in FY 22. The A-Diet Industrial catering business has been adding top-notch customers including IITs, exiting FY23 with quarterly revenue run-rate of Rs 22 crore.
The new business of Dindigul Farm Products overtook food and hospitality in revenues in FY ’23 clocking Rs 90 crore as against Rs 75 crore for Food and hospitality. It makes products like whey protein, casein, milk powder from its plant in state-of-the-art plant in Dindigul. While it has its own brand DFFPPL Ennutrica, this is mainly a B2B business; it supplies to leading food and protein MNCs and Indian companies. DFFPL’s plant has the certifications to export various countries including EU. Besides DFPPL, IBL has a few other subsidiaries now: Healthway India, India Home Health Care and Matrix Boilers. However, these have yet to start contributing significantly, this could happen in FY24.
As we have mentioned earlier, IBL follows a business model of aggregation of MSMEs with potential and unlocking their value by supporting them with working capital and management support. IBL promoters believe there are several good, unlisted, promoter-run firms in their chosen verticals – food, healthcare and engineering – that are fit for aggregation. IBL believes it can aggregate such firms (by making them a subsidiary) at optimal valuations if the promoters are convinced about the value proposition. IBL believes in taking 51% stake, the original promoters retain 49% and continue to run operations
In FY24, the key focus of IBL would be to drive continued growth of organic and acquired businesses. It may need to raise additional capital to support the growing capital needs of its various businesses. The management will continue to look at additional acquisition opportunities as well.
PS: Wisdom-IR is investor relations advisor to Indrayani Biotech Limited. In case you have any queries for the management, you can address them to us.