Key highlights

The net sales for quarter ended June 2016 grew by 5% to Rs 190.60 crore while net profit grew by 34% to Rs 6.14 crore.

Sundrop oil net sales grew 9% and volume 5%. Peanut butter grew 16% in value and16% in volume. Ready to pop corn grew 6% in value and 9% in volume. Bag snack grew 7% volume and 32% value. Institution business saw 61% decline in revenue.

Crystal oil volume declined by 10% and sales declined by 2%.

In Oil, the company has taken some hike in pricing.

Crystal sale is around 15-17% in range of total turnover.

14% increase in consumer food business

Gross margin (GM) expansion was driven by expansion in food business. Higher utilization and cost cut helped GM

ASP was lower than prior year as in April, spend was lower.

The company is slow in new capex building except land purchase due to absorption of present capacity. The company has capacity of generating revenue Rs 400 - 500 crore as of today. 40-45% is present capacity utilization.

Other expenditure has one time settlement cost with Adani of Rs 0.50 crore.

Interest cost higher due to corn borrowing.

Snack category grew by 8% and the company grew by 22%.

Total sack category in India is at $3 bn as per Euromonitor. Half of it is Indian snack, 20%-25% is potato snack and 20%-25% extruded snack and other products..

Popcorn share of total snack in India is - 1.1% of $ 3 bn.

The mgmt said the company is currently more focus on profitability.