Key highlights

• The net sales for Q1 FY12 has increased by 4% to Rs 164.87 crore. The figure for quarter ended June 2010 includes the numbers of the Rath brands sales also, which company sold. Excluding Rath figures, the net sales has grown by 27%. The company has reported a net profit of Rs 4.72 crore, a rise of 15%

• The company has taken significant price hike in edible oil. Despite price hike, no down-trading was seen as against last time where there was down-trading. There was moderate growth in edible oil segment.

• Sundrop has market share of 45% while saffola its competitor has 55% in its premium category.

• The pop corn business's volume growth was soft during the quarter, as one of the 2 plant swas shut down in March for food safety purpose and will open in August. Also there was pipeline correction in distribution channel. The popcorn business will see softness in Q2 also.

• Food business which is largely pop corn is not making any money at EBIDTA at this moment.

• ASP spend was lower in Q1 and expects to be same in Q2 due to more fleet on street. Depending on the performance of this sales team, the company will decide on ASP spend in Q3 and forward.

• The company's two new products convenience meal and cooking spray has received good response from consumers. The third new products ready-to-eat pop corn is in testing mode for last 3 to 4 months. There exist some competition from local player in ready to eat pop corn category.

• The management has ambitious plan to build ACT II into Rs 400 – 500 crore brand.

• The management expects a softness in some channel in edible oil as price hike of 20% to 25% was big one. It expects overall gross margin of 30% for FY12.