Ruchi Soya Q2 net profit rises 36% to Rs 7.08 crore

Edible oil company Ruchi Soya today reported 36% increase in its net profit to Rs 7.08 crore for the quarter ended September 30, on improved business sentiments and sales.

The company had clocked a net profit of Rs 5.22 crore in the year-ago period.

Net sales during the quarter under review was down 20.02% to Rs 5,652.09 crore as against Rs 7,066.99 crore for the same period last fiscal on account of lower supply chain-based business activities and commodity prices, the company said in a statement.

"Improved business sentiments, better activity mix and higher volumes of branded sales have primarily contributed to a strong operational performance during the quarter under review, even though the capacity utilisation of soya crushing units was lower due to non-peak season," Ruchi Soya Founder and Managing Director Dinesh Shahra said.

We believe that our consistent focus on value addition and branded sales will result into a greater visibility and acceptance of our products and sustainable margin improvements in the times to come, Shahra added.

The company is the leading producer of cooking oil and soya food maker and marketer. The company has access to oil palm plantations in India and other key regions of the world.

The firm also deals into export of animal feed, lecithin and other specialty ingredients from India.

Ruchi Soya shares closed 3.37% up at Rs 32.25 per scrip on BSE.