Key highlights

• The standalone net sales for Q2 FY16 have increased by 1% to Rs 199.13 crore. The net profit declined by 36% to Rs 5.13 crore

• The standalone net sales for H1 FY16 have increased by 1% to Rs 380.52 crore. The net profit declined by 27% to Rs 9.72 crore

• For Q2, sundrop oil sales grew 5%, food business by 6% while Crystal oil was down by 17%.

• Sundrop oil sales grew by 4% for H1. Food business grew by 6%. Crystal oil sales declined by 13%.

• Food business sales was Rs 89 crore for H1 and the mgmt expects food business to do sales of Rs 180- 200 crore for FY16.

• Sundrop oil volume for H1 was 7%.

• ASP behind sundrop oil was Rs 2.8 crore and Food was Rs 16.9 crore for H1.

• Premium edible oil industry must has seen flat growth for H1.

• The mgmt said that it has seen some increase commodity prices in last couple of month, resulting in pressure on gross margin in Sundrop oil.

• Peanut butter sales was up by 28% to Rs 11 crore for H1. 7-8% volume came from small sachet packets. Big packs also doing well

• ACT II performance was disappointing. Sales grew by 5% for H1. ASP spend was low vs H1 FY15. The mgmt expects with distribution expansion, sales will pick up.

• The mgmt said for instant popcorn it requires to invest in distribution along with ad spend. Ready to eat popcorn is a volume products for which the company need lots of factories. It will become strategic product but not now, as supply chain is not in place and so distribution, but will become next 18 months ahead.

• In 1.25 lakh stores ACT II is distributed today. The company is investing in distribution and media for growth of ACT II.

• ACT II Nachoz is doing well.

• The company has started rolling out salty peanuts (different products from same raw material which is peanut, procure to make peanut butter) and it's doing well.

• Gross margin was under pressure in H1 as manufacturing overheads are significantly high. Hope to see gross margin improve in H2 on manufacturing stabilization.

• Interest cost high due to working capital charge. The company is in process of importing corn, which has resulted in increase in borrowing by Rs 85-90 crore.

• The company's people on fleet are doing business of Rs 6000 per day, which the company expects to reach Rs 8000 by end of year.

• Tax rate – 31% expects for FY16.