Highlights of the Concall

• Consolidated Q4FY18 revenue from operations up 20% YoY to Rs 108.6 crore against Rs 90.5 crore in Q4FY17. Consolidated EBITDA for Q4FY18 stands at Rs 49 crore against Rs 34.9 crore in Q4FY17, up 40%. Consolidated Q4FY18 Net Profit rise by 30% at Rs 28.3 crore against Rs 21.8 crore in Q4FY17

• Consolidated EBITDA Margin for Q4FY18 stands at 45% as against 39% in Q4FY17

• Revenue growth in Q4FY18 was driven by 28.3% YoY growth in Human Nutrition to Rs 78.9 crore comprising 76% of revenue while Industrial Processing grew 29.3% to Rs 5.3 crore comprising 5% of revenue but Animal Healthcare revenue fell 3.5% to Rs 13.9 crore comprising 14% of revenue and Food segment decreased 13.6% to Rs 5.1 crore comprising 5% of revenue

• Consolidated FY18 revenue from operations up 15% YoY to Rs 395.7 crore against Rs 343.1 crore in FY17. Consolidated EBITDA for FY18 stands at Rs 165.4 crore against Rs 153.4 crore in FY17, up 8%. Consolidated FY18 Net Profit up by 1% at Rs 93.6 crore against Rs 92.9 crore in FY17.

• Consolidated EBITDA Margin for FY18 stands at 42% as against 45% in FY17

• Revenue growth was in FY18 was driven by 21.2% growth in Human Nutrition to Rs 289.2 crore comprising 76% of revenue while Industrial Processing grew 6.7% to Rs 20.6 crore comprising 6% of revenue but Animal Healthcare revenue fell 1.2% to Rs 50.6 crore comprising 13% of revenue and Food segment decreased 10.3% to Rs 20 crore comprising 5% of revenue

• The company expects revenue from new palm oil products to start kicking in from FY20.

• Benefit of reduction in tax rate in the US (from 39% to 28%) will curtail the overall tax rate to a range of 28-29%.

• Higher interest cost in Q4FY18 (Rs 4.5 crore vs Rs 1.1 crore in Q4FY17) was mainly due to adverse currency movement (resulting in Rs 3 crore rise in interest cost).

• Animal and Food HC businesses are currently going through a consolidation phase and the company expects these segments to deliver good growth in the next 1-2 years.

• The company has a B2C business in the US subsidiary, which contributes ~10% to the topline, delivered a better operational performance. The company is looking to expand the business
• in future by focusing on other geographies also.

• The company expects 13-15% revenue growth in FY19 with 43-44% EBITDA margin and PAT margin of 25-26%.