Key highlights

• The net sales for Q3 FY13 have increased by 22% to Rs 219.9 crore. OPM has increased by 80 bps to 8.91%. The company has reported a net profit of Rs 13.06 crore, a rise of 16%.

• Sundrop oil sales grew by 19% in value and 13% in volume in Q3. Volume growth was due to timing difference of festive season in FY13 vs FY12 and broaden portfolio by introducing at various price points. For 9 months, it has grown by 9% in value and 2% in volume.

• The company's market share in premium edible business oil is around 45%.

• Food business is 17% of its total business in Q3.

• For 9 months, popcorn has grown by 30% in value and 20% in volume.

• Peanut butter has grown by 50% - 60% in Q3. For 9 months, it has grown by 50% in value and 15% in volume. Trail production of peanut butter from Gujarat facility will start in March 2013 and in Q1 FY14, full production will start. Peanut butter's lower price point SKU will come once the production starts.

• Crystal brand has grown by 12% in value and 4% in volume in Q3. There was 7% - 8% increase in input cost. Crystal moves very much inline with input cost.

• On Modern trade stores closing down, the mgmt said that all its channels have done well in Q3.

• This year's company's more focus is on advertisement. Promotion this year less compared to last year, as mgmt believed in investing behind the brand which will give long term benefits in driving sales of the company.

• The company will soon put money in advertisement of peanut butter.

• The company is present in 350000 to 400000 stores.

• On corn, the mgmt said that it has adequate corn to meet its requirement for near term.

• The corn prices are up 30% Y-o-Y. In last 8 to 12 months, the company has introduced Rs 15 and Rs 20 price point packs with 20% extra. As prices of corn moves up, the company is in position at cutting this promotion offer, thus not affecting its margin.

• The company has acquired land in Bangladesh and construction of its foundation is going on. In Q2 FY14, it will start the production. Ready to eat popcorn will be first introduced in that market from that facility, followed by cooker popcorn.

• In India, ready to eat popcorn will also be launched from Gujarat Facility. The company is also looking at building a unit in North East region for catering to that market. The biggest problem for ready to eat popcorn is freight cost and its 2 months of shelf life.

• The company's policy is to spend 3 to 4% of net sales on capex and it doesn't believe in putting large money in capacity expansion.

• The company will launch 2 new innovative products in next 12 months.