Agro Tech Foods

Agro tech Foods is engaged in the marketing of food and food ingredients to consumers and institutional customers. The company is affiliated to ConAgra Foods, Inc of USA, which is one the world's largest food companies. The stock price was up last week after it announced that it had completed the purchase of land in Howrah in West Bengal to an extent of 5.15 Bigha (around 1.7 acres) costing Rs 3.01 crore. The company bought this land for expanding its manufacturing footprint in the eastern part of the country.

The company did not have a very encouraging Q3FY16. Net sales were up 3% (YoY) at Rs.202 crore and costs rose 4%, up on account of raw material, employee and depreciation expenses. This dented the EBITDA, which came down marginally from Rs.15.78 crore to Rs.15.57 crore with margins slipping from 8.09% to 7.70%. Interest outgo rose from Rs.34 lakh to Rs.2 crore and this pulled down the net profit, which came in at Rs.6 crore, down from Rs.9 crore in previous Q3. Tax outgo rose 50%.