FMCG company Manorama Industries announced Q2FY23 results:
- In Q1FY23, we had undertaken a temporary maintenance shutdown of our plant operations which did not have a significant impact on the revenues in Q1 due to the adequate inventory buffers.
- However, due to lower production, business performance was marginally impacted in Q2FY23. The performance would have been significantly better if the plant would have remained operational for the entire period.
- Reported an absolute EBITDA growth of 31% YoY. However, EBITDA saw a marginal decline due to a rise in rice husk/fuel costs.
- Finance costs for the quarter increased due to RBI's hike in key interest rates.
- Reported a PAT of Rs 58.5 million. PAT margin for the quarter stood at 7.24%
Commenting on the results and performance, Mir. Gautam Kumar Pai, managing Director said: “The world began to overcome the pandemic’s obstacles gradually and steadily. As the economy recovered, we at Manorama, remained consistent with our performance and have delivered resilient growth in H1FY23. Our revenue for the period grew by 16% which stood at Rs 1,536.8 million while EBITDA for the period grew by 33% which stood at Rs 247.5 million as compared to Rs 185.4 million in the same period last year. EBITDA margins too improved by 213 bps YoY which stood at 16.10%.
During Q1FY23, we had undertaken a temporary maintenance shutdown of its plant operations which did not have significant impact on the revenues due to the adequate inventory buffers. However, due to lower production, business performance was marginally impacted in Q2FY23. The performance would have been significantly better if the plant would have remained operational for the entire period.
Our brownfield will help establish ourselves as one of the major Indian producers in the global CBE and specialised butter & fats industry, and we will be able to further scale up our output to meet global demand. Cumulatively the company has spent Rs 703.8 million on capacity expansion.
Additionally, to enhance the distribution network we plans to set up sales offices in other geographies to gain a better understanding of the market. We are fully committed to the long-term vision and geal to provide the highest level of customer satisfaction by developing host of an innovative range of products in the cocoa butter equivalent, speciality fats, and butter segments."