Kriti Nutrients Limited , a prominent player in the oil seed extraction and refining industry, has announced its financial results for the second quarter and half-year ended September 30, along with a special interim dividend to mark a significant milestone.

Financial Performance

The Board of Directors of Kriti Nutrients Limited approved the unaudited standalone and consolidated financial results for Q2 at their meeting held on November 8. Here's a snapshot of the key financial metrics:

The company has shown resilience in its financial performance, with a notable increase in profitability despite a slight decrease in total income compared to the previous year.

Interim Dividend Declaration

To commemorate three decades of the Kriti Oil Brand, the Board of Directors has declared a special interim dividend of Rs 3.00 per equity share, representing a 300% dividend on the face value of Re 1 per share. The record date for dividend payment has been set as November 13.

Operational Highlights

• The company continues to focus on its core business of oil seed extraction and refining, which remains its only reportable segment under IND AS 108 Operating Segments.
• Kriti Nutrients has maintained a strong balance sheet with total assets of Rs 25,590.25 lakhs as of September 30, up from Rs 23,782.93 lakhs at the end of the previous fiscal year.

Investment in Associate Company

Kriti Nutrients Limited has increased its stake in Kriti Industries (India) Limited (KIL), which is now treated as an associate company. The investment constitutes 6.24% of KIL's share capital, and Kriti Nutrients exercises significant influence through common management and directors. This strategic move is expected to create synergies and strengthen the company's market position.

Management Commentary

Shiv Singh Mehta, Chairman & Managing Director of Kriti Nutrients Limited, stated, "We are pleased to report a solid performance in the first half. The declaration of a special interim dividend underscores our commitment to delivering value to our shareholders as we celebrate the enduring legacy of the Kriti Oil Brand. Our strategic investments and focus on operational excellence continue to drive our growth trajectory."

Future Outlook

With a strong financial foundation and strategic investments in place, Kriti Nutrients Limited is well-positioned to capitalize on growth opportunities in the oil seed extraction and refining sector. The company's focus on maintaining a robust balance sheet and rewarding shareholders bodes well for its future prospects.

Note: All financial figures are based on the unaudited financial results for the quarter and half-year ended September 30, as approved by the Board of Directors.

Kriti Nutrients , a prominent player in the oil seed extraction and refining industry, has reported a significant decline in its net profit for the quarter ended June 30. The company's financial results, approved by the board of directors on August 12, reveal a mixed performance with increased revenue but reduced profitability.

Financial Highlights

• Net Profit: ₹920.84 crore, down 35.5% from ₹1,427.26 crore in the same quarter last year
• Revenue from Operations: ₹22,904.04 crore, up 21.9% from ₹18,781.56 crore year-over-year
• Total Expenses: ₹21,922.42 crore, increased from ₹17,069.29 crore in the previous year quarter
• Earnings Per Share (EPS): Decreased to ₹1.84 from ₹2.85 in the corresponding quarter

Performance Analysis

Kriti Nutrients witnessed a substantial growth in its revenue from operations, which rose by 21.9% to ₹22,904.04 crore. This increase in revenue indicates strong demand for the company's products and an expansion of its market presence.

However, the significant rise in total expenses, which increased by 28.4% to ₹21,922.42 crore, outpaced the revenue growth. This surge in expenses has considerably impacted the company's profitability for the quarter.

Expense Breakdown

A closer look at the expense structure reveals:

The substantial increase in the cost of materials consumed indicates potential challenges in managing raw material costs, which could be attributed to various factors such as supply chain disruptions or commodity price fluctuations.

Management Commentary

Shiv Singh Mehta, Chairman & Managing Director of Kriti Nutrients, stated in the board meeting outcome, "The company has demonstrated strong revenue growth in a challenging environment. While our top-line performance is commendable, we are actively addressing the increase in expenses to improve our bottom-line results in the coming quarters."

Segment Performance

Kriti Nutrients continues to operate in a single business segment, namely Oil Seed Extraction and Refining, as per Ind AS 108 Operating Segments.

Consolidated Results

On a consolidated basis, which includes the results of its associate company Kriti Industries (India) Limited, Kriti Nutrients reported a net profit of ₹948.97 crore for the quarter. The company's investment in Kriti Industries (India) Limited constitutes 6.24% of its share capital.

Auditor's Review

M Mehta & Company, the statutory auditors, have expressed an unmodified audit opinion on the financial results, indicating that the statements are free from material misstatements and are in accordance with the applicable accounting standards.

The financial results of Kriti Nutrients reflect the challenges faced by the company in maintaining profitability despite strong revenue growth. As the company navigates through increased operational costs, investors and stakeholders will be keenly watching its strategies to improve profit margins in the upcoming quarters.