Ruchi Soya Q2 net profit nosedives 78% at Rs 27 cr

Ruchi Soya Industries Ltd today posted a steep fall of 78 per cent in its standalone net profit to Rs 26.74 crore for the second quarter ended September 30, on poor sales.
The company had clocked a net profit of Rs 121.14 crore in the year-ago period, it said in a BSE filing.
The firm's net income also declined to Rs 5,127.95 crore during the quarter under review as against Rs 5,736.20 crore in the July-September period a year ago.
Sale of its branded food products fell to Rs 2,195.40 crore as compared to Rs 2,240.96 crore in the said period.

The revenue showed a decline in almost all business segments -- edible oils, vanaspati, food products, wind turbine power generation and others. In fact, it incurred losses in seed extraction segment during the quarter, it said.
The company's financial cost however remained lower at Rs 137.15 crore as against Rs 318.01 crore, as also its total expenses were at Rs 5,002.23 crore as against Rs 5,388.21 crore in the said period, the filing added.

Ruchi Soya Managing Director Dinesh Shahra said: "We believe that, going ahead, the growth oriented approach and operational efficiency measures will ensure that we fulfil our responsibilities towards all our stakeholders."

He further said that the company is working with banks to help farmers go cashless and introduction of GST will greatly help the organised companies like Ruchi Soya in rationalising costs and improving margins considerably.
Ruchi Soya sells cooking oil and soya food products under brand name Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold, among others.
Shares of the company were trading 0.25 per cent down at Rs 19.55 apiece on BSE.