Manorama Industries Ltd - Q3 & 9M FY24 performance

Manorama Industries Limited (BSE: 541974; NSE: MANORAMA), a global pioneer in the manufacturing of specialty fats & butters and exotic products, has announced its results for the third quarter and nine months ending December 31st, 2023, for the financial year ending March 31st, 2024.

Financial Highlights - Q3 & 9M FY24

Revenue Growth:

Revenues: Manorama Industries recorded revenues of INR 984.5 million in Q3 FY24, reflecting a modest growth of 3.2% compared to INR 953.8 million in Q3 FY23. However, there was a decline of 16.4% from the previous quarter, with revenues amounting to INR 1,177.3 million in Q2 FY24. On a cumulative basis, the company reported revenues of INR 3,277.5 million for the nine months ended FY24, marking a robust growth of 31.6% from the corresponding period last year.

Operational Performance:

EBITDA: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at INR 156.1 million in Q3 FY24, up by 2.6% from INR 152.1 million in Q3 FY23. However, there was a decline of 15.6% compared to the previous quarter's EBITDA of INR 184.9 million. For the nine months ended FY24, Manorama Industries reported EBITDA of INR 527.5 million, reflecting a significant increase of 32.0% from the same period last year.

EBITDA Margin: The EBITDA margin remained stable at 15.9% in Q3 FY24, similar to Q3 FY23. However, there was a slight improvement of 15 basis points (bps) compared to the previous quarter. Similarly, for the nine months ended FY24, the EBITDA margin was reported at 16.1%, showing a marginal increase of 5 bps from the corresponding period last year.

Profitability:

Profit After Tax (PAT): Manorama Industries reported a PAT of INR 74.4 million in Q3 FY24, representing a growth of 3.9% from INR 71.6 million in Q3 FY23. However, there was a decline of 13.6% compared to the previous quarter's PAT of INR 86.1 million. For the nine months ended FY24, the company's PAT amounted to INR 276.0 million, indicating a substantial increase of 39.6% from the same period last year.

PAT Margin: The PAT margin stood at 7.6% in Q3 FY24, slightly higher by 5 bps compared to Q3 FY23. Similarly, for the nine months ended FY24, the PAT margin was reported at 8.4%, reflecting a notable improvement of 48 bps from the corresponding period last year.

Financial Results - 9M FY24

- Revenues during 9M FY24 stood at INR 3,277.5 Mn registering a growth of 31.6% YoY. The Company experienced improved realisations and enhanced demand in domestic and export markets of Russia, Latin America, Japan and Europe.

- EBITDA during 9M FY24 grew by 32% YoY at INR 527.5 Mn; EBITDA margin for the period stood at 16.1%.

- PAT during 9M FY24 grew by a 39.6% YoY to INR 276 Mn; PAT margin expanded by 48 bps YoY to 8.4%.

Commenting on the results and performance, President of Manorama Industries, Mr. Ashish Saraf said, "The Company achieved a substantial 31.6% YoY revenue growth, reaching INR 3,277.5 million in the first nine months of FY24, despite a maintenance shutdown impacting fractionation capacity at Birkoni in Q3FY24. The domestic-to-export mix for Manorama Industries stood at 56:44 during this period, with strong demand observed in export markets such as Russia, Latin America, Japan, and Europe.

EBITDA saw a significant 32% YoY increase, totaling INR 527.5 million in 9MFY24, with an EBITDA margin 01 16.1%. The Company's planned capex is progressing as scheduled, and the new fractionation capacity is anticipated to commence by the end of FY24. We have strategically built inventory due to seasonal procurement of Shea Nuts, Sal Seeds and Mango kernels, resulting in increased finance costs attributed to higher working capital. The expanded fractionation capacity positions us to meet growing customer demand, reinforcing our position in the global CBE and specialty butter and fats industry. This added capacity is expected to drive incremental sales and profitability.

We are actively working to accelerate our growth momentum. Exploring opportunities to deepen our presence in existing geographies, the Company is considering establishing entities in the Russia, Latin America, UAE and other markets. Furthermore, leveraging our expertise in the Chocolate & Confectionery industry, we are evaluating diversification into manufacturing real chocolate, super compound slabs, compound chocolate, and specialty cocoa products for both Indian and global markets.

As part of our commitment to sustainability, the company continues to implement robust ESG practices, reinforcing our unique 'Waste to Wealth' business proposition and creating long-term value for our esteemed investors."

Shares of Manorama Industries Ltd was last trading in BSE at Rs. 1880.10 as compared to the previous close of Rs. 1920.30. The total number of shares traded during the day was 1598 in over 368 trades.

The stock hit an intraday high of Rs. 1987.00 and intraday low of 1870.00. The net turnover during the day was Rs. 3041295.00.

Source : Equity Bulls

Keywords

ManoramaIndustries INE00VM01010 Q3FY24 9MFY24 ResultUpdate