Ruchi Soya

India’s largest soya food maker and edible oil, the company has done very well in Q1FY16. The company reported almost a 9 times (YoY) jump in net profit at Rs.1.57 crore. Along with a lower base effect, what is credible is that this was despite a huge Rs.22 crore provision for taxation in current Q1 compared to Rs.5 crore in previous Q1. Net sales rose 2% at Rs.5875 crore. EBITDA showed a modest 4% jump at Rs.181 crore.

The capacity utilization of refining facilities has increased by 26.48% from 4.3 lakh MT to 5.4 lakh MT, primarily due to better utilization of port based refinery facilities. The soya seed crushing utilization capacity has declined by 14% from 2.6 lakh MT to 2.3 lakh 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% from Rs 1,970 crore to Rs 2,188 crore. The proportion of branded sales to total sales has gone up from 34% to 37%. The company is expecting things to get better in coming months as the festive season arrives and usage for edible oil goes up.