Patanjali Foods (PATANJALI) Q4 02/03 earnings summary

Executive summary

• FY2002-03 standalone sales, service charges and other income rose 19.92% YoY to Rs.3,414.17 crore; profit after tax was Rs.27.01 crore versus Rs.27.33 crore.

• Consolidated sales and other income reached Rs.3,889.92 crore; consolidated profit after tax was Rs.32.05 crore.

• Operations navigated a sharp fall in oilseed and soybean production, with growth supported by oil sales, scale benefits and growing retail volumes.

Financial highlights

• Standalone gross profit increased to Rs.52.08 crore from Rs.46.81 crore; PBT rose 6.49% to Rs.36.11 crore.

• Standalone PBDIT rose 6.34% to Rs.75.48 crore from Rs.70.98 crore; PAT declined to Rs.27.01 crore from Rs.27.33 crore after higher current and deferred tax provisions.

• Oil sales grew ~30% to Rs.2,549 crore and vanaspati sales rose over 40% to Rs.346 crore; exports decreased to Rs.204.15 crore from Rs.216.86 crore.

• Equity dividend recommended at 16%, or Rs.1.60 per share, on enlarged equity capital; 19 lakh shares issued during the year receive prorated dividend.

Outlook and guidance

• FY2003-04 oilseed output was expected to improve with normal rainfall, potentially lifting solvent-extraction capacity utilisation.

• Priorities include expanding branded consumer-pack sales, strengthening distribution, developing value-added products and maintaining a low-cost structure.

• Following Mangalore refinery commissioning, plans called for refineries at other coastal locations to improve cost efficiency and value-added product marketing.