Manorama Industries (541974) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 37.8% YoY to ₹2,791.2 million; PAT increased 65.6% to ₹241.5 million, supported by demand growth and higher exports.

• Growth priorities included capacity expansion, custom product development, wider geographic reach and strengthening raw-material sourcing through Manorama Africa Limited.

Financial highlights

• Revenue from operations was ₹2,791.2 million vs ₹2,026.3 million in FY21; EBITDA was ₹389.4 million vs ₹346.6 million, up 12.3% YoY.

• PAT rose to ₹241.5 million from ₹145.8 million, up 65.6% YoY; cash profit increased 42.1% to ₹320.4 million.

• EPS was ₹20.8 vs ₹13.1; PAT margin was 8.7% vs 7.2%, while EBITDA margin was 14.0% vs 16.2%.

• Export revenue increased materially YoY; revenue mix comprised domestic sales of ₹1,700.5 million and exports of ₹1,074.3 million.

Outlook and guidance

• Management anticipated further demand and profitability growth, driven by specialty fats and butters, custom-made CBE products and expanding global markets.

• Planned capacity additions target 40,000 MTPA each for refinery and fractionation, 25,000 MTPA for deodorisation and 30,000 MTPA for blending and packing.

• FSSAI’s increase in permitted CBE in chocolate from 2.5% to 5.0% was expected to support new products, existing customer relationships and customer additions.