Highlights of the Quarter:
- Total sales increased by 67% to Rs.734 crores
- Retail sales up by 84%
- PAT up 59% to Rs. 42.22 crores
- Two plants in Kota and Ratlam started production in Oct 2008
Mumbai, October 25th, 2008: K S Oils Limited, one of India's leading integrated edible oil company in the FMCG sector and the leader in branded mustard oils, continued its growth journey on the back of robust retail led branded sales. The company reported a turnover of Rs. 734 crores during the second quarter ended September 30th, 2008 an increase of 67% from Rs. 440 crores during the corresponding period of the previous year.
The growth in retail sales helped the company register higher per unit profitability and increase the overall profits of the company. The company reported a profit after tax (PAT) of Rs. 42.22 crores for the quarter ended September 30th, 2008 as compared Rs. 26.58 crores during the corresponding period of the previous financial year. Announcing the results, Mr. Sanjay Agarwal, Managing Director, K S Oils commented, "As in our last quarter, K S Oils' focus on brand led retail sales is helping us in our growth, both top-line and bottom-line. Our nation wide advertisement campaign has got tremendous response from consumers for our brands Kalash and Double Sher. We have strengthened our all India distribution network with the appointment of new partners; today we have more than 700 distributors. Our strategy is to ensure that consumers across the country get to see, taste and buy our products from any and every retail outlet." The company's growth plan both in the domestic and international operations are moving as per schedule. The two new state-of-the-art manufacturing plants at Kota (Rajasthan) and Ratlam (Madhya Pradesh) have started production and Guna (Madhya Pradesh) plant is undergoing commissioning and will be fully operational by the end of 2008; this will make KS the largest processor of mustard seeds by a big margin in India. The palm plantations in Indonesia and Malaysia are under-progress and with palm oil becoming the most consumed in India and preferred edible oil, the company's palm oil strategy stands validated The company will continue its focus on retail led growth through modern retail and small retail formats; the company's products are currently available in Big Bazaar (Future Group), More (Aditya Birla Group) and Spencers (RPG Group) outlets in East India. Now KS products will be sold through such outlets all over India. Commenting further, he said, "Domestic demand for health and food items like edible oil will continue to be firm and increasing. With a demographic population of young Indians who are getting more and more health conscious, demand for edible oil for healthy living of the family will keep on increasing."
About K.S. Oil Limited (www.ksoils.com):
K.S. Oils Limited is a leading integrated edible oil FMCG company with product range constituting mustard, palm and Soya bean oils. The company is headquartered in Morena in Madhya Pradesh and the promoters have a history of over 100 years in the commodities industry. It is listed in the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) and is the largest processor of mustard seeds in India. Managed by a team of leading professionals with rich industry experience and backed by the promoters - The Garg family - with a consistent track record of performance, the company is today amongst the top 5 edible oil companies in India and is poised to become a global player in the years to come.
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