Ruchi Soya slumps after Q1 PAT drops 12% YoY

Ruchi Soya Industries hit a lower circuit of 5% at Rs 683.90 after the company reported a 12.6% fall in net profit to Rs 12.26 crore in Q1 June 2020 as against Rs 14.02 crore in Q1 June 2019.

Revenue from operations in Q1 June 2020 stood at Rs 3,043.08 crore, falling 2.2% from Rs 3112 crore in the same period last year. Profit before tax came at Rs 12.26 crore in Q1 June 2020, 12.6% lower than Rs 14.02 in Q1 June 2019. The company did not pay an taxes in quarter ending in June 2020. The announcement was made after market hours yesterday, 19 August 2020.

Meanwhile, the company announced that Acharya Balkrishna has resigned as managing director with effect from 18 August 2020 due to his pre-occupation. Ram Bharat has been designated as MD with effect from 19 August 2020 till 17 December 2022.

Ruchi Soya was taken over by Baba Ramdev's Patanjali Ayurved on 18 December 2019 through the bankruptcy process. Patanjali group infused Rs 4,300 crore into Ruchi Soya via equity, debt and preference shares. Currently 99.03% (about 29 crore shares) of Ruchi Soya are held by 15 Patanjali group entities. The remaining 0.97% (about 28 lakh shares) is held by public shareholders.

Following the acquisition, shares of Ruchi Soya were relisted from 27 January 2020. On the first day of relisting, the stock settled at Rs 16.90 on the BSE. Since then, the stock touched a record high of Rs 1,535 on 26 June 2020. Between 27 January - 26 June, the Ruchi stock soared 8982.84%.

Ruchi Soya is one of the largest manufacturers of edible oil in India.

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