Manorama Industries (541974) Q4 18/19 earnings summary

Executive summary

• FY18-19 focused on specialty fats and butters manufacturing after trading operations were discontinued; manufacturing revenue rose while reported total revenue fell against a prior year that included substantial trading sales.

• Profitability improved, supported by manufacturing growth and operational efficiency; a new integrated plant was under construction to address demand exceeding current supply.

Financial highlights

• Manufacturing revenue was ₹101.77 crore vs ₹61.22 crore in FY17-18; trading revenue was nil vs ₹157.91 crore, and total revenue was ₹106.06 crore vs ₹220.93 crore.

• Manufacturing EBITDA was ₹31.86 crore vs ₹19.33 crore; PAT was ₹19.06 crore vs ₹9.93 crore.

• Manufacturing operating profit was ₹22.77 crore vs ₹14.69 crore; profit before tax was ₹25.95 crore vs ₹16.37 crore.

• Operating cash flow was negative ₹9.20 crore, while cash and cash equivalents ended FY18-19 at ₹495.31 crore.

Outlook and guidance

• FY19-20 and beyond: management expected healthy top- and bottom-line growth and market-share gains, citing a strong order pipeline and export traction.

• The integrated Birkoni plant was expected to add 15,000 MT p.a.; the first phase was expected to be operational by November 2019, with seed milling expected from December 2019.

• CBE production was expected to reach 18,000 MT by 2021 as expanded capacity supports demand across food, confectionery and cosmetics markets.