Ruchi Soya Q1 net rises to Rs 1.57 crore

Ruchi Soya Industries Ltd today reported net profit of Rs 1.57 crore in the first quarter ended June 30, up from Rs 0.18 crore posted in the same period last year, as a steep provision for taxation curbed a rise in bottomline.
Despite a steep provision for taxation of Rs 22.27 crore as against Rs 5.59 crore last year, profit after tax stood at at Rs 1.57 crore in the April-June quarter as against Rs 0.18 crore in the corresponding period last year, a company statement said here.
The manufacturer and marketer of edible oils and some other products recorded an increase of 2.18 per cent in net sales in Q1, from Rs 5725.46 crore to Rs 5,850.37 crore.

Earnings before interest and depreciation improved by 3.95 per cent, from Rs 174.49 crore to Rs 181.38 crore. Profit before tax rose 313.52 per cent to Rs 23.84 crore from Rs 5.77 crore in the year-ago period.
The capacity utilisation of refining facilities shot up 26.48 per cent, from 430872 MT to 5,44,973 MT, primarily due to better utilisation of port-based refinery facilities.
During the period, the soya seed crushing utilisation capacity has declined 14.05 per cent from 2,63,422 MT to 2,26,425 MT, owing to low availability of seeds in the market place and lack of commercial parity for processing.

However, despite fall in commodity prices, sale of branded products rose by 11.03 per cent, from Rs 1,970.21 crore to Rs 2,187.50 crore, the statement said.

The proportion of branded sales to total sales went up from 34.41 to 37.39 per cent, presenting a healthy trend.
Commenting on the performance, Dinesh Shahra, Managing Director, Ruchi Soya, said, "Operating profitability in the quarter was impacted mainly due to low capacity utilisation of soya crushing capacity on account of poor arrival of crops in the non-peak season and lack of commercial viability for processing."
"However, we are encouraged by the increased capacity utilisation in port-based refining plants. Despite challenging and competitive business environment, the overall performance has been satisfactory," Shahra said.

He said keeping in view the festive season ahead, improved market sentiments and signs of growth in the economy, the demand for edible oil is likely to increase in the coming quarters. The weather conditions have been conducive for an enhanced soya seed production in the current year.