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Delhi, April 21, 2008

K S Oils crosses Rs. 2,000 crores top line milestone in FY08

Profit after Tax doubles to Rs. 122 crores

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Highlights of the Year:

  • Total sales increased by 91%
  • Retail sales up by 184%
  • Branded Sales up by 86%
  • PAT up 113%
  • 50,000 acres of Palm Plantation land acquired in Indonesia
  • EPS for the year stands at Rs 4.53 compared to Rs 2.97 in FY07
  • Benefit of Import duty cuts passed on to customers

Delhi, April 21, 2008: K S Oils Limited, one of India's leading integrated edible oil company and the leader in the Packaged Mustard Oils business, crossed the Rs. 2,000 crores sales mark during the financial year ended 31st March, 2008. The company reported a turnover of Rs 2,041.07 crores for the year ended March 31st, 2008 an increase of 90.66% from Rs. 1,070.51 crores during the previous year.

In addition the company managed to more than double its net profit to cross the Rs. 100 crores mark inline with the earnings guidance issued by the chairman Mr. Ramesh Garg during the year. Profit after tax for the year ended March 31st, 2008 stood at Rs. 122.04 crores as compared Rs. 57.32 crores during the previous financial year.

Income from operations for the fourth quarter ended March 31st, 2008 soared by 129.71% and stood at Rs. 674.02 crores, as compared to Rs. 293.42 crores crores, during the same period during the previous financial year. Net profit for the quarter ended March 31st, 2008 stood at Rs. 39.56 crores as an increase of 88.02% from Rs. 21.04 crores during the corresponding quarter of the previous financial year. The company reported an EPS of Rs. 1.25 for the quarter as compared to Rs. 0.95 in the corresponding quarter.

Announcing the results, Mr. Sanjay Agarwal, Managing Director, K S Oils commented, "I am glad that we managed to surpass our earnings guidance and fulfil our commitments to all our stakeholders."

"I am extremely delighted to inform you that we are working well towards our plan and as far as implementation of new projects is concerned we are on schedule and hope to implement them well within the timeline. Our backward integration initiatives are also progressing well and we hope to reduce the cost of raw materials significantly in the years to come. This will lead to better margins for K S Oils and help in stabilising edible oil prices in the larger interest of the country." He added.

Recently, K S Oils acquired 20,000 hectares (50,000 acres) of Palm plantation land in Indonesia. With an investment of Rs. 230 crores spread over the next 3 years, the company is ensuring backward integration to secure raw material supplies and avoid global price volatility. This will help the company in reducing raw material costs significantly and also signals the company's strategic intent of being a global player.

During fiscal 2008, branded sales of the company, increased by 86% over the previous year, while retail sales grew to Rs. 654 crores from Rs. 230 crores. The company continues to focus on its human resource activities and has implemented new initiatives such as putting in place a merit based talent and performance management system. During the year, company was able to add significant professional talent to its existing team.

In order to increase its power generation capacity further the company added 28 windmills generating 24 MW of energy during the year and hopes to add more windmills during fiscal 2009. Going forward K S Oils hopes to cement its strong retail led consumer brand strategy and focus on backward integration to secure its supply of raw materials.