KS Oils bottomline up five-fold to Rs 20 cr

BS 200 SCORECARD

KS Oils, a leading edible oil company, posted a net profit of Rs 20.21 crore for the quarter ended December 31, 2006, which is more than five-and-a-half times over Rs 3.55 crore net profit in the corresponding quarter last year.

The net sales rose 148 per cent to Rs 305.25 crore compared with Rs 123 crore during the same period last year.

The consolidated net profit for the nine-month period ended December 31, 2006, was Rs 39.81 crore, an increase of 275 per cent from Rs 10.61 crore, reported during the corresponding period of the previous year. KS Oils, one of the country's largest producers of mustard oil, saw healthy growth in sales of branded products as well as retail packs. 
 

Rs crore	Quarter ended Dec
	2005	2006
Net sales	123.00	305.25
Expenditure	116.20	274.50
Operating profit	6.90	30.60
Net profit	3.60	20.20
EPS (Rs)	4.80	12.40

Timely procurement of seeds has enabled the company to revise its business outlook upward for the current financial year.

The company plans an aggressive push in the areas of branding and retail packs. It will also focus on increasing production capacities through organic and inorganic means.

"We envisage sectoral reforms as well as increased awareness about the health benefits of mustard oil driving our industry. India is at just half the world average in terms of yield of mustard seeds per hectare. Moreover, mustard oil is a clear winner among edible oils when it comes to low levels of saturated fat content," said Sourabh Garg, executive director, KS Oils.

The country's average yield of mustard seeds is at 1,000 kg per hectare, whereas world average is over 2,000 kg per hectare.

Though the company does not expect its sales in the current financial year to change from Rs 1,100 crore to Rs 1,200 crore, as was estimated in its October business outlook, it expects its net profit and EBITDA to exceed the outlook.

"We expect this trend to continue and strengthen over the foreseeable future," said Sanjay Agarwal, managing director, KS Oils.