Key highlights

• The standalone net sales for Q1 FY16 have increased by 1% to Rs 181.39 crore. The net profit declined by 14% to Rs 4.59 crore.

• Sundrop oil volume excluding grew oil grew by 7% and including free oil grew by 11-12%. Net sales grew by 3%.

• Crystal oil volume declined by 9% and net sales by 10% due to low commodity oil prices and increase in competition.

• In food business, peanut butter sales grew by 19% QoQ. ACT II sales grew by 6%. Act II volume grew by 13%. Peanut butter sachet has been launched. The company has also aired advertisement of peanut butter.

• Saffola media spending was Rs 1.5 crore in Q1 FY16, less than its competitors.

• ACT II media spending was Rs 3 crore in Q1 FY16 vs Rs 4.6 crore in Q1 FY15.

• The company has increase no of people on its roll by 210, taking fleet on street to around 1200 people.

• The company will spend on increase in its distribution. With increase in distribution, the mgmt expects growth in volume.

• Cost of van operation was subsided which had 50 bps impact on margin. The mgmt said that temporary it see gross margin under pressure due to van operation subsidization and due to operating cost.

• The company has acquired land in Chittoor, in Andhra Pradesh, to set its factory. Guwahati facility work will finished in Q1 FY16 and will start production in Q2 FY16.

• The company has invested Rs 10 – 12 crore in Guwahati facility and around similar amount it will invest in Chittoor.

• The company has started to import reasonable amount of corn. As a result, interest cost will see rise, which will come down later.

• The company is number 3 player in snacks and number 2 player in premium oil.

• The mgmt will look after Sri Lanka market which has big market for breakfast products and snack products after exploring Bangladesh market. Presently, it is exporting to Sri Lanka.