Patanjali Foods (PATANJALI) Q4 14/15 earnings summary

Executive summary

• FY14-15 revenue rose 15.49% YoY to ₹28,411.61 crore; PAT increased to ₹60.93 crore from ₹13.42 crore, supported by a ₹64.92 crore exceptional gain on divestment.

• Operating performance faced pressure from commodity-price volatility, weak domestic soybean availability and lower realizations for soya meal and oil; EBITDA declined 14.68% YoY to ₹626.03 crore.

Financial highlights

• Total revenue ₹28,411.61 crore, up 15.49% YoY; total expenditure rose 16.42% to ₹27,785.58 crore.

• EBITDA ₹626.03 crore, down 14.68%; finance costs fell 12.87% to ₹462.32 crore and depreciation, amortization and impairment fell 10.02% to ₹148.01 crore.

• PBT ₹80.62 crore vs ₹49.72 crore; PAT ₹60.93 crore vs ₹13.42 crore, up 354.02% YoY.

• Exceptional gain of ₹64.92 crore from divestment of Gemini Edibles & Fats India; sale proceeds were ₹1,099.24 crore.

• Branded sales reached ₹8,357 crore vs ₹6,965 crore; exports were ₹4,578.14 crore vs ₹4,843.68 crore.

Outlook and guidance

• Better soybean acreage and expected crop size, lower commodity prices and rising imports were expected to improve seed availability, capacity utilization and operating performance in FY15-16.

• Strategy centers on expanding branded products, distribution, retail penetration, product and packaging innovation, and improving margins through a low-cost integrated model.

• Long-term demand outlook rests on rising disposable income, low per-capita edible-oil consumption and a continued shift from unbranded to packaged products.