Ruchi Soya Q4 loss at Rs 889cr on dismal EBITDA performance

Moneycontrol Bureau

Edible oil manufacturer Ruchi Soya Industries disappointed street on Tuesday by posting big loss of Rs 889 crore in January-March quarter against profit of Rs 19 crore in year-ago period, dented by lower revenue and loss at operating level (in major segments like oil, seed extraction and others).

Revenue declined 17.4 percent to Rs 8,048.7 crore during the quarter from Rs 9,738.9 crore in corresponding period of last fiscal due to lower growth across segments (except food products).

"Performance in FY16 was adversely impacted by sustained pressure in global commodities market (soybean, edible oils, coffee, guar gum & castor), weak & erratic monsoon, foreign exchange fluctuations and overall economic downturn," Dinesh Shahra, founder & MD said.

However, branded sales have grown from Rs 8,357 crore to Rs 9,094 crore despite fall in commodity prices.

Operational performance was pathetic for the quarter as EBITDA (earnings before interest, tax, depreciation and amortisation) loss stood at Rs 840.2 crore against profit Rs 138.3 crore in year-ago period.

Other income in Q4 fell 61.8 percent year-on-year to Rs 26.3 crore and finance cost increased 8.3 percent to Rs 169.3 crore.

Ruchi Soya has tax write-back of Rs 132.7 crore during the quarter against expenses of Rs 5.8 crore in same period last fiscal.

It said FY16 loss stood at Rs 891.3 crore against profit of Rs 60.93 crore in previous year. Revenue in same period declined 2 percent to Rs 27,735 crore.

At 14:35 hours IST, the scrip of Ruchi Soya Industries was quoting at Rs 21.10, down Rs 0.75, or 3.43 percent on Bombay Stock Exchange.