Ruchi Soya drops on profit booking

Ruchi Soya Industries lost 1.21% to Rs 24.55 at 10:15 IST on BSE on profit booking after Thursday's rally triggered by the company signing distribution pact with Patanjali Ayurved.

Meanwhile, the S&P BSE Sensex was up 106.85 points or 0.34% at 31,389.33.

On the BSE, 1.13 lakh shares were traded in the counter so far, compared with average daily volumes of 3.02 lakh shares in the past two weeks. The stock had hit a high of Rs 25.50 and a low of Rs 24.10 so far during the day.

Shares of Ruchi Soya Industries had surged 11.69% in a single trading session to settle at Rs 24.85 yesterday, 28 September 2017 after the company said during market hours on that day it has signed a memorandum of understanding (MOU) with Yoga Guru Baba Ramdev-promoted Patanjali Ayurved for an exclusive sales and distribution arrangement for the entire range of Patanjali edible oil in large packs. Under the terms of the MoU, Ruchi Soya would use its own extensive distribution network to sell the complete range of Patanjali edible oils in large packs across all regions of India.

Under the agreement, Ruchi Soya has exclusive distribution rights for the existing as well as future range of Patanjali edible oils in large packs. The MoU will be followed by signing of a detailed service agreement for an initial period of three years, similar to the previous processing and packaging agreements concluded between Ruchi Soya and Patanjali Ayurved earlier this year.

Ruchi Soya's sales & distribution system ensures that its brands are available in more than 10 lakh outlets across 4,000 towns in general trade; in addition to its extensively coverage of modern trade outlets, institutions and the Horeca (hotel/restaurant/catering) segment.

Ruchi Soya Industries reported net loss of Rs 286.24 crore in Q1 June 2017 as against net profit of Rs 1.03 crore in Q1 June 2016. Net sales declined 34.1% to Rs 3261.21 crore in Q1 June 2017 over Q1 June 2016.

Ruchi Soya is India's leading agri and food FMCG company. The company enjoys leadership position in soy foods and cooking oil segments of the country.

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