Manorama Industries (541974) Q4 22/23 earnings summary

Executive summary

• FY23 revenue from operations rose 26% YoY to Rs. 3,508 million; PAT increased 23% to Rs. 297.75 million, supported by product innovation, market expansion and operating efficiencies.

• Q4 FY23 was described as the highest-ever quarterly performance, with revenue crossing Rs. 1,000 million.

• Growth strategy centers on sustainable sourcing, customized specialty fats and butters, R&D, and expanded production capacity for food, confectionery and cosmetics customers.

Financial highlights

• Revenue from operations was Rs. 3,508.0 million versus Rs. 2,791.2 million in FY22, up 26% YoY; total revenue including other income was Rs. 3,569.2 million.

• EBITDA reached Rs. 564.5 million, up 45% YoY; EBITDA margin was 16.1% versus 14.0% in FY22.

• PAT was Rs. 297.75 million versus Rs. 241.5 million, up 23%; PAT margin was 8.5% versus 8.7%.

• Basic EPS was Rs. 24.98 and diluted EPS Rs. 24.97, compared with Rs. 20.76 for both in FY22.

• Operating cash flow was Rs. 592.8 million versus cash used of Rs. 333.6 million in FY22; investing cash outflow was Rs. 994.7 million.

Outlook and guidance

• The 25,000-tonne fractionation plant was expected to become operational in H1 FY24, followed by a gradual ramp-up; expanded capacity is expected to support throughput and revenue and profit growth.

• A 300-TPD solvent extraction plant, warehouse and storage projects, refinery automation and packaging capacity expansion form part of the capacity and efficiency program.

• Global specialty fats and butter demand is projected to grow at 7.71% CAGR through 2028; expansion and new geographies are intended to address the demand-supply gap.

• Growth opportunities include Russia and Latin America, premium and artisanal chocolate, organic cosmetics, and demand for healthier, natural and customized ingredients.