Heritage Foods Limited | 30th Annual Report 2021-22

Financial Statements Company Overview Statutory Reports 101 Cash Inflows Cash Outflows Key Financial Ratios as per SEBI Listing Obligations and Disclosure Requirements (Amendment) Regulations, 2018; Particulars 31 March 2022 31 March 2021 Debtors Turnover Ratio 163 135 Inventory Turnover Ratio (on Cost of Goods Sold) 10.76 11.10 Interest Coverage Ratio 66.60 12.84 Current Ratio 1.60 1.24 Debt Equity Ratio 0.00 0.08 Operating Profit (PBIT) Margin (%) 5.15% 8.68% Net Profit Margin (%) 3.84% 6.03% Return on Net Worth (RONW) 16.18% 27.50% GROWTH STRATEGY AND OUTLOOK Penetration in existing market - The Company strives to penetrate the already existing markets with its products. The focus is on penetrating with value-added products and not just milk. Spending on enhancing facilities - The Company plans to spend its Capex on maintaining and improving the existing processing, cold chain facilities and also on procurement. Increasing product reach - Expanding the franchisee operated outlets tomake the products of the Company more accessible to the consumers is the primary focus area. Also the Company is devising a model called Heritage Distribution Centre where set-ups will be bigger with a distribution model and not only an over-the-counter sales model. These centres will also distribute value-added products along with milk. Outlook - The Company aims to increase the penetration in the existing markets rather than entering new ones. Considering the changing demographic factors like changing lifestyle, increasing income etc., a penetration strategy can help in expanding its consumer base. MDA