to view - Modi Naturals Limited

ModiNaturalsLtd.
EarningsPresenta,on
Q4-FY16/FY16
India’sFinestRangeofBrandedEdibleOilsCompany
Execu3veSummary
Company
•  ModiNaturalsLimited(MNL)wasincorporatedin1974byMr.D.DModi.Thecompanyisinthe
businessofmanufacturing&marke,ngofedibleoilsandde-oiledcakes.
•  In 2010, MNL launched its first branded edible oil and has since then increased its focus from
non-branded edible oils to the branded segment and has increased its presence across India in
brandedproducts.
•  MNLislistedontheBSEwithacurrentmarketcapitalisa,onofINR1,828Mn(Ason31stMarch,
2016).
Products
Exis3ngBrands:
• 
• 
OleevOliveOils:
Ø  OleevAc,veOil
Ø  OleevExtraVirginOliveOil
Ø  OleevExtraLightOliveOil
Ø  OleevPomaceOliveOil
MustardOil:TaraiShudh,TaraiTasty+
NewBrands:
•  Rizolo-RiceBranOil
•  OlivanaWellness-MassageOil
•  Miller-CanolaOil
OtherNon-brandedproducts:
•  SunflowerOil
•  RiceBranOil
•  MustardOil
•  RiceBranWaxandDeoiledCakes
FY16Financials
•  TotalIncome(includingotherincome)–INR2,717Mn.
•  EBITDA–INR85Mn.
•  PAT-INR20Mn.
2
CompanySnapshot
•  ModiNaturalsLimited(MNL)wasincorporatedin1974byMr.D.DModi,the
visionaryentrepreneuroftheModiGroup,andisheadquarteredoutofNew
Delhi,India.
SegmentalSalesBreakUp–FY16
Branded
29%
•  Thecompanybeganitsopera,onsin1974withanoilmillandasolventplant
tomanufactureRiceBranOilin1979inPunjab.
NonBranded
71%
•  MNLgotlistedontheBSEin1985,andstartedtsmanufacturingopera,onin
Pilibhit,U.P.Theplanthasevolvedtodayintoafullyintegrated100Tonsper
day refining capacity, a 300 Tons per day crushing capacity and a 400 Tons
perdaysolventextrac,oncapacity.
•  Since 2010, the company has slowly transi,oned its business from the
commodi,zed non-branded manufacturing and marke,ng of edible oils to
making unique branded edible oils and also becoming India’s Third largest
BlendedOilBrand.
SegmentalSalesGrowth(INRMn)
Branded
•  The company’s branded product porjolio includes of Oleev Olive oil, Oleev
Ac,ve oil (Blend of Olive oil and Rice Bran Oil), Rizolo Rice bran oil, Tarai
shudhMustardoil,TaraiTasty+(BlendofmustardandRicebranoil),Miller
CanolaOilandOlivanaWellnessOil.
•  In the non-branded segment, the company manufactures and markets
Sunfloweroil,RiceBranoil,Mustardoil,RiceBranwaxandDe-oiledcakes.
Non-Branded
1,925
1,912
1,807
293
427
FY2014
FY2015
774
FY2016
3
Q4FY16/FY16Financial&Opera3onalHighlights
• 
• 
• 
• 
• 
Q4FY16FinancialHighlights
TotalIncome:INR898Mn;Growthof25.4%YoY
EBITDA:INR17Mn;Growthof325%YoY
EBITDAMargin:1.9%;Growthof130BpsYoY
NetProfit:INR(13)Mn
DilutedEPS:(1.16)INR
• 
• 
• 
• 
• 
• 
FY16FinancialHighlights
TotalIncome:INR2,717Mn;Growthof16.2%YoY
EBITDA:INR85Mn;Growthof117.9%YoY
EBITDAMargin:3.1%;Growthof140BpsYoY
NetProfit:INR20Mn
PATMargin:0.7%,Growthof66BpsYoY
DilutedEPS:1.77INR
Q4FY16Opera3onalHighlights
•  Grossmarginhavegoneupfrom~15%to~20%incorrespondingquartersandYoY.That'sa33%expansioninGrossMargins.
•  ProfitsdeclinedduetoanincreaseinDeferredTaxoutgoofINR13MninQ4FY16.
Brandedbusiness:
•  MNL’sbrandOleevAc,vehasgotasignificantmarketshareofthepremium'healthyedibleoil'segment,inorganisedretailand
infewofthemajorchains.
•  Expandedourdistribu3ontosmalltownsinmostmajorstatesinIndia.
•  ReceivedrepeatedorderswithCSD(ArmyCanteens).
•  ScaledupTVcampaignwithcelebritybrandambassadorsforbrandOleevtoleadingTVchannels.
Manufacturingbusiness:
•  Thereis~18%growthintoplineanributedtohigherprocessingvolumesandbenerefficiencies.
•  Theproduc3onofSolventPlanthasgoneupbyabout10%inQ4FY16overcorrespondingfigureofQ4FY15.
•  ThesalesofDORB(De-oiledRiceBran)havegoneupfrom23,038TonsinQ4FY15to28,116TonsinQ4FY16.Addi,onally,on
accountofincreaseinprices-Realisa,onofDORBhavealsogoneupfromINR7,848/-PMTinQ4FY15toINR10,509/-PMTin
Q4FY16resul,ngina61%increaseYoYinTotalSalesofDORB,fromINR181MninQ4FY15toINR296MninQ4FY16.
4
Q4-FY16IncomeStatement
Q4-FY16
Q3-FY16
Q-o-Q
Q4-FY15
Y-o-Y
TotalIncome
898
864
3.9%
716
25.4%
TotalExpenses
881
846
4.1%
712
23.7%
EBITDA
17
18
(5.6)%
4
325.0%
1.9%
2.1%
(20)Bps
0.6%
130Bps
Deprecia,on
3
3
-
(3)
NA
Interest
9
6
50.0%
8
12.5%
OtherIncome
0
18
NA
0
NA
PBT
5
27
(81.5)%
(1)
NA
CurrentTax/WealthTax
0
0
NA
0
NA
MinimumAlternateTax
5
4
25.0%
0
NA
DeferredTax
13
0
NA
0
NA
ProfitAferTax
(13)
23
NA
(1)
NA
PATMargin
NA
2.7%
NA
(0.1)%
NA
EPS
NA
2.11
NA
0.14
NA
IncomeStatement(Mn)
EBITDAMargin
5
FY16IncomeStatement
FY16
FY15
Y-o-Y
TotalIncome*
2,717
2,339
16.2%
TotalExpenses
2,632
2,300
14.4%
85
39
117.9%
3.1%
1.7%
140Bps
Deprecia,on
12
12
-
Interest
31
26
19.2%
PBT
42
1
NA
CurrentTax/WealthTax
0
0
NA
MinimumAlternateTax
9
0
NA
DeferredTax
13
0
NA
ProfitAferTax
20
1
NA
PATMargin
0.7%
0.04%
66Bps
EPS
1.77
0.14
NA
IncomeStatement(Mn)
EBITDA
EBITDAMargin
*IncludesOtherIncome
6
HistoricalIncomeStatement
IncomeStatement(Mn)
FY13
FY14
FY15
FY16
TotalIncome
1,946
2,098
2,339
2,717
TotalExpenses
1,884
2,052
2,300
2,632
62
46
39
85
3.2%
2.2%
1.7%
3.1%
Deprecia,on
14
14
12
12
Interest
18
16
26
31
PBT
30
16
1
42
Tax
10
8
(0.1)
22
ProfitAferTax
20
8
1
20
PATMargin
1.0%
0.4%
0.04%
0.7%
EPS
1.83
0.74
0.14
1.77
EBITDA
EBITDAMargin
7
BalanceSheet
PARTICULARS(MN)
EQUITYANDLIABILITIES
Shareholder'sFunds
(a)ShareCapital
(b)Reserves&Surplus
(c)Moneyreceivedagainst
sharewarrants
TotalShareholderFunds
Non-currentliabili3es
Mar-13 Mar-14 Mar-15 Mar-16
PARTICULARS(MN)
ASSETS
Non-CurrentAssets
111
111
111
111
175
184
185
205 (a)Fixedassets
(i)Tangibleassets
0
0
0
0
(ii)Intangibleassets
286
295
296
316 (iii)Capitalwork-in-progress
(b)Long-termloansand
advances
(c)Othernon-currentassets
5
3
1
9
(a)Long-termborrowings
TotalNon-CurrentAssets
29
29
41
(b)DeferredTaxliabili,es(Net) 26
1
1
0
0
(c)OtherLongtermliabili,es
Currentassets
4
5
6
8
(d)Long-termProvisions
(a)Currentinvestments
36
38
36
58
TotalNon-currentliabili3es
(b)Inventories
(c)Tradereceivables
CurrentLiabili3es
169
213
281
342
(a)Shorttermborrowings
(d)CashandCashequivalents
93
144
97
60
(b)Tradepayables
(e)Short-termloansand
advances
34
52
52
80
(c)Othercurrentliabili,es
8
8
8
13
(f)Othercurrentassets
(d)Shorttermprovisions
304
417
438
495
TotalCurrentLiabili3es
TotalCurrentAssets
626
750
770
869
GrandTotal
GrandTotal
Mar-13 Mar-14 Mar-15 Mar-16
199
1
0
189
1
2
180
1
1
183
1
4
4
5
7
9
6
210
0
304
61
33
17
214
0
402
106
19
31
220
0
396
118
12
59
256
11
5
8
10
7
416
626
4
536
750
16
550
770
31
613
869
0
437
126
9
8
CapitalMarketData
SharePriceMovement(AsonMarch31st,2016)
ModiNaturals
PriceData(AsonMarch31st,2016)
FaceValue(INR)
Shareholdingpahern(AsonMarch31st,2016)
10
MarketPrice(INR)
164.4
52weekH/L(INR)
164.40/21.15
MarketCap(INRMn)
EquitySharesOutstanding(Mn)
1YearAvg.TradingVolume(‘000)
Sensex
1,828.2
11.12
6.49%
Promoter
19.70%
73.81%
FII
Others
0.49
9
Disclaimer
Norepresenta,onorwarranty,expressorimplied,ismadeasto,andnorelianceshouldbeplacedon,thefairness,accuracy,completenessorcorrectnessof
the informa,on or opinions contained in this presenta,on. Such informa,on and opinions are in all events not current ater the date of this presenta,on.
Certain statements made in this presenta,on may not be based on historical informa,on or facts and may be "forward looking statements" based on the
currentlyheldbeliefsandassump,onsofthemanagementof ModiNaturalsLimited(“Company”or“MNL”or“ModiNaturalsLtd.”),whichareexpressedin
goodfaithandintheiropinionreasonable,includingthoserela,ngtotheCompany’sgeneralbusinessplansandstrategy,itsfuturefinancialcondi,onand
growthprospectsandfuturedevelopmentsinitsindustryanditscompe,,veandregulatoryenvironment.
Forward-looking statements involve known and unknown risks, uncertain,es and other factors, which may cause the actual results, financial condi,on,
performance or achievements of the Company or industry results to differ materially from the results, financial condi,on, performance or achievements
expressedorimpliedbysuchforward-lookingstatements,includingfuturechangesordevelopmentsintheCompany’sbusiness,itscompe,,veenvironment
andpoli,cal,economic,legalandsocialcondi,ons.Further,pastperformanceisnotnecessarilyindica,veoffutureresults.Giventheserisks,uncertain,esand
other factors, viewers of this presenta,on are cau,oned not to place undue reliance on these forward-looking statements. The Company disclaims any
obliga,ontoupdatetheseforward-lookingstatementstoreflectfutureeventsordevelopments.
This presenta,on is for general informa,on purposes only, without regard to any specific objec,ves, financial situa,ons or informa,onal needs of any
par,cularperson.Thispresenta,ondoesnotcons,tuteanofferorinvita,ontopurchaseorsubscribeforanysecuri,esinanyjurisdic,on,includingtheUnited
States. No part of it should form the basis of or be relied upon in connec,on with any investment decision or any contract or commitment to purchase or
subscribeforanysecuri,es.Noneofoursecuri,esmaybeofferedorsoldintheUnitedStates,withoutregistra,onundertheU.S.Securi,esActof1933,as
amended,orpursuanttoanexemp,onfromregistra,ontherefrom.
Thispresenta,onisconfiden,alandmaynotbecopiedordisseminated,inwholeorinpart,andinanymanner.
ValoremAdvisorsDisclaimer:
Valorem Advisors is an Independent Investor Rela,ons Management Service company. This Presenta,on has been prepared by Valorem Advisors based on
informa,onanddatawhichtheCompanyconsidersreliable,butValoremAdvisorsandtheCompanymakesnorepresenta,onorwarranty,expressorimplied,
whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presenta,on. This
Presenta,onmaynotbeallinclusiveandmaynotcontainalloftheinforma,onthatyoumayconsidermaterial.Anyliabilityinrespectofthecontentsof,or
anyomissionfrom,thisPresenta,onisexpresslyexcluded.ValoremAdvisorsalsoherebycer,fiesthatthedirectorsoremployeesofValoremAdvisorsdonot
ownanystockinpersonalorcompanycapacityoftheCompanyunderreview.
Forfurtherinforma3onpleasecontactourInvestorRela3onsRepresenta3ves:
Valorem Advisors
Mr.AnujSonpal,CEO
Tel:+91-223006-7521/22/23/24
Email:modi@valoremadvisors.com
10