Ruchi Soya Posts EBITDA Of Rs 1,018 Cr After Acquisition By Patanjali Group, Highest Since Inception

For the quarter ended March 31, 2021, Company's EBITDA stood at Rs. 270.60 crore with an EBITDA margin of 5.57%, reflecting an increase of 272 basis points on a YoY basis.

Mumbai: Patanjali Group-owned Ruchi Soya Industries Limited (Ruchi Soya), on Tuesday, reported 122% growth in its EBITDA to Rs. 1,018.37 crore for 2021 fiscal, making it the highest EBITDA ever achieved by Ruchi Soya since its incorporation in 1986.

For the quarter ended March 31, 2021, Company's EBITDA stood at Rs. 270.60 crore with an EBITDA margin of 5.57%, reflecting an increase of 272 basis points on a YoY basis.

The diversified FMCG major reported a 24.35% growth in its revenues to Rs 16,383 crore during the year. The company's income during the quarter grew 51% to Rs 4859.5 crore.

The company's PAT for the financial year grew over 203% to Rs 681 crore  (excluding exceptional items), while for the March quarter stood at Rs 314 crore, reflecting a growth of 38%.

Ruchi Soya’s branded business vertical including brands sold under royalty arrangements achieved sales of Rs. 3,455.96 crore, for the quarter ended March 31, 2021, contributing to 71.12%, said a company statement.  

Expansion:

Last month, the company began to market biscuits, cookies, rusk, and other associated bakery products under the Patanjali brand name in India according to a business transfer agreement with Patanjali Natural Biscuits Private Limited.

Early this month, the company began to market breakfast cereals, atta (wheat) noodles under the Patanjali brand name in India according to an assignment agreement with Patanjali Ayurved Limited.

The company has forayed into 100% Vegetarian Nutraceutical and wellness products by initially introducing 10 FMHG products under the joint branding of Nutrela and Patanjali.

Ruchi Soya was acquired by Baba Ramdev led The Patanjali Group, one of India’s leading FMCG Groups according to the completion of CIRP and the implementation of the Patanjali Resolution Plan on December 18, 2019.

The company with strategically located manufacturing facilities recognized brands like Ruchi Gold, Mahakosh, Sunrich, Nutrela, and Ruchi Star has a pan India presence and over 2.5 lakh hectares palm plantation allocation.

Ruchi Soya has filed a draft red herring prospectus dated with the market regulator SEBI about a further public offering proposed by Ruchi Soya (FPO).

Ruchi Soya shares on BSE  hit the upper circuit to close at Rs 1194.55 ahead of the announcement of the results, valuing the company at Rs 35,340 crore on Tuesday.

The company's shares have gained over 195% since September 2020.

Last year, Ruchi Soya was in limelight for its share surging over 6,000% amid the pandemic. However, with poor fundamentals, and only low float and sentiments to back the stock, the gains were soon lost.  

"Patanjali, that bailed out the company in an insolvency proceeding in 2019, is now planning to offload stake to meet the market regulator’s minimum public shareholding norm. A month ago, Ruchi Soya had acquired biscuits business from Patanjali on a slump sale business.  Amid all this buzz and ahead of its Board meeting and results, the stock has found favour again and has hit the upper circuit.  However, its price should not be mistaken for its value. With a chequered performance history, high debt on the balance sheet, and almost 99% of the shares pledged, the stock hardly offers any comfort from a long-term perspective," Richa Agarwal, Senior Research Analyst - Equitymaster told ABP News.