Ruchi Soya Q3 profit rises 50% to Rs 227 crore on strong branded business sales

Ruchi Soya, which was acquired by a consortium led by Baba Ramdev's Patanjali Ayurveda in December 2019, on Wednesday reported 50.26 per cent year-on-year (YoY) growth in profit after tax (PAT) at Rs 227.44 crore for third quarter ended December 31, 2020. On sequential basis, the profit of soya food brand Nutrela-maker jumped 79.46 per cent from Rs 126.74 crore in September quarter of 2020 (Q2 FY21).

The edible oil manufacturer, which has Baba Ramdev, his younger brother Ram Bharat and close aide Acharya Balkrishna on its board, posted 20.13 per cent YoY and 12.15 per cent QoQ rise in total income at Rs 4,475.60 crore in Q3 FY21.  

On the operational front, the company delivered EBITDA of Rs 351.71 crore, registering 36.06 per cent increase QoQ and 76.78 per cent YoY. EBITDA margins for the December quarter of the current fiscal stood at 7.86 per cent, up by 1.38 per cent on QoQ basis and by 2.52 per cent on YoY.

During the quarter under review, the performance of the company's branded business was encouraging, with Ruchi Gold, Mahakosh, Nutrela and Ruchi Star registering significant growth. The company's branded business, including brands sold under royalty arrangement, achieved sales worth Rs 3,017.58 crore in Q3FY21, contributing to 67.42 per cent of the total sales. The branded business sale registered a growth of 13.99 per cent QoQ and 21.30 per cent YoY.

As per the company, other businesses comprising of oil palm plantation, windmills, export business, oleochemicals and institutional sales cumulatively reported 8.52 per cent growth on QoQ basis. Exports surged 93.35 per cent sequentially and 73.85 per cent on YoY basis.

"The continuous focus on strengthening its brand portfolio will ensure its sustainable growth in coming years. The company has demonstrated agility and execution excellence in testing times of COVID in recent past that has enabled the company to achieve growth across various product categories," Ruchi Soya said in a regulatory filing.

Going forward, the company plans to undertake several new initiatives to strengthen current business segments and expand the footprints by entering in new product categories. The company mulls to increase market penetration by launching new products in health food category as Indian consumer is shifting towards healthier lifestyle.

Ahead of Q3 earnings, shares of Ruchi Soya Industries ended Wednesday trade at Rs 711.85, up 1.01 per cent, against previous closing price of Rs 704.75 on the Bombay Stock Exchange.