Patanjali Foods (PATANJALI) Q4 03/04 earnings summary

Executive summary

• FY03/04 standalone sales and other income rose 4.34% to Rs.3,553.85 crore; profit after tax increased 26.47% to Rs.34.16 crore.

• Consolidated sales and other income reached Rs.5,244.60 crore; profit after tax after minority interest was Rs.38.37 crore.

• Leadership in vegetable oils and soya foods was maintained while expanding branded consumer packs, manufacturing capacity and nationwide distribution.

Financial highlights

• Standalone gross profit rose 41.26% to Rs.73.57 crore from Rs.52.08 crore; PBDIT increased 25.77% to Rs.94.93 crore from Rs.75.48 crore.

• Standalone PBT advanced 52.34% to Rs.55.01 crore; PAT rose 26.47% to Rs.34.16 crore despite higher tax provisions, including deferred tax.

• Standalone interest cost declined 8.72% to Rs.21.36 crore from Rs.23.40 crore.

• Consolidated PBT was Rs.62.57 crore, including a Rs.0.02 crore extraordinary item; PAT after minority interest was Rs.38.37 crore.

• Equity dividend was recommended at 16% (Rs.1.60/share); 4% preference dividend was recommended on preference shares issued during the year.

Outlook and guidance

• Priorities included growing branded retail volumes, strengthening distribution and brand portfolios, improving cost efficiency, and developing affordable value-added products.

• New projects at Esambe, Haldia and Nagpur were intended to improve strategic sourcing, logistics and cost-efficient production; Haldia’s textured soya protein plant was commissioned during the year.

• Consumer-pack growth, rising awareness of soya nutrition and projected edible-oil consumption were viewed as growth opportunities; bakery fats and shortenings were also targeted for development.