Ruchi Soya share price stay firm despite weak Q2

Despite weak Q2 numbers, intraday on Friday, Ruchi Soya share price settled above 0.25 per cent at Rs. 19.75.

Ruchi Soya Industries Ltd today registered a sharp fall of 78 per cent in its standalone net profit to Rs 26.75 crore for the second quarter ended September 30, on the back of poor sales.

The firm's net income also dipped to Rs 5,127.95 crore during the quarter under review.The revenue highlighted a decline in almost all business sectors like edible oils,vanaspati, food products, wind turbine power generation and others. As a matter of fact, it incurred losses in seed extraction segment during the quarter. But, the company's financial cost stayed lower at Rs 137.15 crore as against Rs 318.01 crore, as also its total expenses were at Rs 5,002.23 crore as against Rs 5,388.21 crore in the said period.

It is believed that, going ahead, the growth oriented approach and operational efficiency measures will assure that the company fulfils their responsibilities towards all their stakeholders. Ruchi Soya sells cooking oil and soya food products under brand name Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold, among others.

Kisan Kalyan Ayojan

The Company is working with banks to help farmers go cashless and introduction of GST will greatly help the organized companies like Ruchi Soya in rationalizing costs and improving margins considerably.
Ruchi Soya Industries along with State Bank of India has launched 'Kisan Kalyan Ayojan' - an initiative taken to support farmers in availing the benefits of digital banking post demonetization.

To start off, banking assistance will be given to soyabean farmers in Indore, Samwer, Manglia and Ujjain mandis in Madhya Pradesh. Furthermore, the company has planned to expand this programme across the country surrounding other states like Maharashtra, Andhra Pradesh and Gujarat.

Kisan Kalyan Ayojan initiative is going to aid the farmers in ways like:

• Opening of Bank Accounts for Farmers / Agricultural Labourers
• Acquiring produce directly from farmers at the right price
• Ensuring Farmers receive their payment as soon as possible through internet banking
• Maintaining banking helpdesks for farmers coming to sell off their produce in mandis
• Educating farmers on the banking process through awareness seminars

Ruchi Soya is involved with 10 million farmers across the country through crops like soybean, mustard and palm. Ruchi Soya share price was last trading in NSE at Rs. 19.70 as compared to the previous close of Rs. 19.65. The total number of shares traded during the day was 3,94,010 with a traded value of Rs. 77.62 lacs, as per NSE.

The stock hit an intraday high of Rs. 19.85 and intraday low of 19.55. Dynamic Levels have identified Ruchi Soya as one of the top 500 performing stocks for this quarter, owing to its strong fundamentals.