Kohinoor Foods announces 46.18% increase in net profit, at Rs 8.04 crore

New Delhi, January 22, 2007: Kohinoor Foods Ltd, today announced its results for the quarter ended December 31, 2006. The company recorded sales worth Rs 181.61 crore, an increase of 29.21% from Rs 140.43 crore in the corresponding quarter last fiscal. The net profit also recorded an increase of 46.18% to Rs 8.04 crore from Rs 5.50 crore.

The company showed excellent realizations from increased share of branded product sales and thrust on high margin Ready-to-eat segment. The company’s exports have also shown tremendous growth.

Branded basmati sales (domestic and exports) increased to Rs 94.71 crore as against Rs 79.20 crore in the corresponding previous quarter reflecting a growth of 19.58%. This was particularly on account of 45.16% increase in exports of branded basmati rice to Rs 22.87 crore in Q3 FY07 as compared to Rs 15.76 crore in Q3 FY06. Ready-to-eat foods segment recorded a 100% growth with an increase in sales to Rs 10.14 crore from Rs 5.07 crore.

Kohinoor’s thrust towards increasing branded sales and defocusing commodity business could be seen in the 24.42% increase in revenues from branded business and a 10.99% fall in revenue from private labeling business. This resulted in EBITDA growing up to Rs 19.07 crore in Q3 FY07 from Rs 14.46 crore in Q3 FY06.

Kohinoor Foods has been a strong player in the global market, both for its Branded Basmati rice and Ready-to-Eat food business. The company entered into frozen foods category after already establishing a strong foothold in the ambient foods. During the quarter, Kohinoor completed its shipment of frozen foods to UK, Australia and Switzerland and also added 10 new products in this category.

In the ambient foods business, Kohinoor Foods introduced its products in TESCO, Ireland and tied-up with leading stores of Cash n Carry, Palmer and Harvey in UK, thereby increasing its supplies in these countries. It also introduced a new range of ready-to-eat meals in Malaysia Airline and entered Norma, a leading German chain of stores for its product range of rice, RTE meals and spices.

Domestically, the company has got listed for rice and food supplies for the upcoming stores of Reliance in Jaipur, Delhi and Mumbai. This is besides presence in Reliance Store at Hyderabad.

Commenting on the results, Mr. Gurnam Arora, Jt. Managing Director, Kohinoor Foods Limited, said, “With Kohinoor’s foray into frozen foods, our diversification into high margin foods business is complete. The company has been able to report exceedingly good numbers because of the strength of its branded basmati rice in India and abroad, as well as the success in the RTE food business across countries. This shows the recognition of our brand ‘Kohinoor’ and reinforces the trust associated with it.”

Kohinoor Foods is further planning to increase the capacity of its ambient foods from 50,000 meals per day to 1 lakh meals per day and that of basmati rice from 62 mt/hr to 70 mt/hour. The company also has plans to install steam turbine for power generation.

Source : Equity Bulls

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