Patanjali Foods (PATANJALI) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales and other income rose 32% YoY to Rs.1,730.77 crore; net profit increased to Rs.17.74 crore from Rs.17.19 crore.

• Growth reflected stronger consumer-pack edible-oil presence and a broad branded product range, while profit growth was constrained by intense competition.

Financial highlights

• Gross profit was Rs.29.86 crore versus Rs.28.07 crore; PBT was Rs.19.74 crore versus Rs.18.79 crore.

• PAT was Rs.17.74 crore versus Rs.17.19 crore; tax provision was Rs.2.00 crore versus Rs.1.60 crore.

• Combined exports by the parent and subsidiaries were Rs.214.07 crore versus Rs.258.14 crore; volume rose to 325,506 MT from 288,023 MT amid historically low international prices.

• Net interest expense declined to Rs.21.70 crore from Rs.24.28 crore; depreciation rose to Rs.10.11 crore from Rs.9.27 crore.

Outlook and guidance

• A subsidiary was setting up a refinery and bakery-fats unit near Chennai to serve the growing southern consumer-pack market.

• Strategy emphasized expanding pouch-packing capacity, broader branded distribution, asset utilization, cost control and lower-cost food processing.

• New Ruchi Sona refined rapeseed oil was launched in the east; Ruchi Star soy oil and premium Ruchi No.1 vanaspati were being introduced for popular and rural markets.