Sanwaria Agro Oils – Result Analysis

Sanwaria Agro Oils – SAOL exceeded sales estimates by a wide margin & PAT estimates marginally for FY08. It achieved a turnover & PAT of Rs. 9386 mn & Rs. 543 mn respectively against an estimated turnover and PAT of Rs. 8234 mn & Rs. 501 mn respectively. EPS for FY08 stood at Rs. 6.2 [FY07: Rs. 1.4] vs. estimated EPS of Rs. 5.8. The net sales & PAT increased by 110.7% & 344% respectively over FY07. EBITDA margins improved from 5.2% in FY07 to 8.3% in FY08. PAT margins increased from 2.7% in FY07 to 5.8% in FY08. Improved realisations, better capacity utilisation & economies of scale contributed largely to the sales & profitability growth.

SAOL has expanded the existing daily crushing capacities at Mandideep & Itarsi from a total of 1,000 TPD to 2,000 TPD & refining capacity from a total of 150 TPD to 300 TPD. The commercial production of the same has commenced from January 15 2008. The full impact of this expansion is expected in FY09.