Patanjali Foods (PATANJALI) Q4 97/98 earnings summary

Executive summary

• FY97-98 sales and other income rose 36% YoY to Rs.1,309.13 crore; profit after tax increased to Rs.17.19 crore from Rs.16.18 crore.

• Bulk edible oils remained the established base, with a strategic push into branded consumer packs and neighboring export markets.

Financial highlights

• Sales and other income: Rs.1,309.13 crore vs Rs.963.43 crore in FY96-97; gross profit increased to Rs.28.07 crore from Rs.26.01 crore.

• Profit before tax was Rs.18.79 crore vs Rs.18.61 crore; tax provision was Rs.1.60 crore vs Rs.2.43 crore; profit after tax was Rs.17.19 crore vs Rs.16.18 crore.

• Combined exports from the parent and subsidiaries were Rs.258.14 crore vs Rs.243.51 crore; parent exports were Rs.156.54 crore and subsidiary exports Rs.101.60 crore.

Outlook and guidance

• SUNRICH sunflower oil and RUCHI GOLD refined palmolein were gaining encouraging response in southern India; planned branded-product expansion targeted Sri Lanka, Bangladesh and Nepal.

• Growth prospects were supported by branded-product diversification and the stated potential of India’s edible-oil industry, described as the world’s third largest.