Key highlights

The net sales for Q2 FY15 have increased by 1.2% to Rs 196.84 crore. The net profit declined by 25% to Rs 7.96 crore.

The net sales for H1 FY15 have decreased marginally to Rs 375.87 crore. The net profit declined by 22% to Rs 13.31 crore.

For H1, Sundrop edible oil volumes was down 8-9% whereas Crystal volumes grew by 10%. Valuewise:- Sundrop edible oil down 5%, while Crytsal declined by 3%. Overall edible oil revenues were down 4-5%.

For H1, food business saw 24% growth, out of which10% growth is due to institutional business, 9% due to the retail popcorn business and a 5% contribution from Peanut butter.

In H1, gross margin improved by 180 bps to 26.3% due to increase in share of food business and decline in raw material cost.

A&P spend increased by 400 bps to 8% in H1. Total ad spend was Rs 21 crore and sales promotion was Rs 8 crore.

Corn has been now taken out from most restrictive list by government. As such, the company can now import corn without cannibalizing agent. But the problem is that it will come at higher duty rate.

The company has started its fourth plant in Unnav.

As per company's internal data, the company's product is available in 2 – 2.5 lakh outlets. As per A C Neilsen data, Sundrop oil is present in 75000-80000 outlets and ACT II in 100000 – 110000 outlets.

Peanut butter presently is available in 3 SKUs:- 462 gms SKU at Rs 250, 200 gms SKU at Rs 110 and 100 gms SKU at Rs 55. The company will soon launch it in sachets also at Rs 5 – 10.

Tax rate for FY16 and FY17 will be 31%. The mgmt was unable to give tax rate guidance for FY15.

By the end of second half of the fiscal year, the company will launch two new products.