Ruchi Soya Industries Limited announces Q3FY21 results

Ruchi Soya Industries Limited announced its results for the quarter ending 31st December, 2020.

With continued focus on enhancing the brand portfolio, Ruchi Soya has achieved a total income of Rs. 4,475.60 crore during third quarter ended December 31, 2020 as compared to Rs. 3,990.72 crore during second quarter ended September 30, 2020 depicting a significant growth of 12.15% QoQ and 20.13% YoY. Company delivered healthy EBITDA of Rs. 351.71 crore, registering 36.06% increase QoQ and 76.78% YoY. EBITDA margins for the current quarter stood at 7.86%, up by 1.38 % on Q0Q basis and by 2.52 % on YoY.

During Q3FY21, the performance of the Company's branded business has been very encouraging, with Ruchi Gold, Mahakosh, Nutrela and Ruchi Star registering significant growth. The Company's branded business including brands sold under royalty arrangement achieved a sales of Rs 3,017.58 crore in Q3FY21, contributing to 67.42% of the total sales of the Company. The branded business sale registered a growth of 13.99% QoQ and 21.30% YoY.

Company's other businesses comprising of Oil Palm Plantation, Windmills, Export business, Oleochemicals and institutional sales cumulatively reported 8.52% growth on QoQ basis. It is significant to note that exports surged impressively by 93.35% QoQ and 73.85% on YoY basis.

The Profit after tax (PAT) for third quarter ended December 31, 2020 was Rs. 227.44 crore as compared to Rs. 126.74 crore for the second quarter, an increase of 79.46% QoQ basis and 50.26% on YoY basis. The total Profit after tax for first nine months during the current financial year was Rs. 366.44 crore as against Rs. 247.20 crore (excluding exceptional items) as compared to corresponding nine months of previous year, depicting a growth of 48.23%.

The growth opportunity in our core categories remains extremely strong. The company continues to benefit from large brand portfolio that spread across the mass, popular and premium segment. The company is well placed to lead growth trend with a strong portfolio of brands including Ruchi Gold, Mahakosh, Sunrich, Nutrela and Ruchi Star. The new product categories viz. Honey, Premium Edible Oil and High Protein Atta introduced under the Nutrela brand in the current financial year are in line with the growing consumer preference for healthier food options. 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.

Going forward, management plans to undertake several new initiatives to strengthen current business segments and expand the footprints by entering in new product categories. With our pan India presence, we are well positioned to take advantage of the emerging opportunities. We aim to:

- Capitalize on the existing brands and increase market share across categories.
- Increasing market penetration by launching new products in health food category as Indian consumer is shifting towards healthier lifestyle.
- To increase the area under Oil Palm Plantation to contribute to national building effort by reducing dependence on imported oil.

Shares of RUCHI SOYA INDUSTRIES LTD. was last trading in BSE at Rs.711.85 as compared to the previous close of Rs. 704.75. The total number of shares traded during the day was 5402 in over 437 trades.

The stock hit an intraday high of Rs. 720 and intraday low of 694.9. The net turnover during the day was Rs. 3817985.

Source : Equity Bulls

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