Key highlights

• The net sales for Q3 FY12 decreased by 7% to Rs 181.58 crore. Excluding Rath figures, the net sales has grown by 13%. The significant portion of the growth came from pricing part. OPM stood at 8.5%. The company has reported a net profit of Rs 11.23 crore, a rise of 15%..

• Edible oil volume remained flattish for the quarter. The company has taken price hike in line with the market.

• The company will continue to invest behind Sundrop Heart, as it is showing good growth.

• The ready-to-eat popcorn introduced in the market.

• The pop corn business volume is trailing below last year volume.

• The company presently has 3.5 lakh direct outlet reach and target to increase it to 5 lakh by the end of next year.

• The advertising cost has come down by 47% on Y-o-Y basis, as in Q3 FY11 the company had made one time spend in advertisement from the money it got by selling Rath brand.

• Out of the 600 people which are employed for covering the retail outlets to increase its distribution reach in its subsidiaries, the 300 people are now on payroll.

• The contribution of food business to total is in second phase of 15% to 25%. The company has strategy of increasing its food business contribution to 50% of total in 3 phases: 1) 2% to 15%, 2) 15% to 25% and 3) 25% to 50%.

• The company has capex plan of Rs 100 crore for next 2 years. It has acquired a land in Gujarat for putting Peanut Butter plant and in negotiation for 3 other location in the country for food business.

• Cash on book is around Rs 29 crore.

• The gross block is around Rs 83 crore.

• In Q4, Bangladesh subsidiary will become operational.