Manpasand Beverages Ltd PAT up 69.96% at Rs.34.06 crore in H1 of FY 2016-17

India’s leading fruit juice player, Manpasand Beverages Ltd has reported a 24% rise in net profit at Rs. 5.41 crore for the second quarter ended September 30, 2016 as against net profit of Rs. 4.35 crore in the corresponding quarter of previous fiscal. Net sales for Q2 of FY 16-17 at Rs. 103.81 crore were higher by 34% over previous fiscal’s same quarter net sales of Rs. 77.20 crore. Earnings Per Share (EPS) for Q2FY16 was at Rs. 1.08.

For the six months ended September 2016, company reported a net profit of Rs. 34.06 crore against a net profit of Rs. 20.04 crore in the corresponding period last year, a growth of 70%. Net sales in first half of FY 2016-17 at Rs. 340.35 crore were higher by 52% compared to Rs. 224.35 crore in the previous fiscal. EPS for H1 FY 2016-17 was at Rs. 6.80.

Elaborating on the Company’s performance and future expansion plans, Mr. Dhirendra Singh, Chairman & MD of Manpasand Beverages, said, “The still untapped demand for fruit drinks across India is huge. In spite of having commissioned two new plants in the last one year, we are unable to meet the demand from our existing markets, leave alone expanding our reach further. Company will be also coming up with 4 new plants in different parts of the Country including South India where Manpasand’s presence is minimal. “

Currently the production capacity of Manpasand Beverages is around 1.7 Lakh cases per day and the company is working to double the same in a period of 12 to 18 months.

Speaking on demonetisation and its impact on the company’s business, Mr. Singh said that, this is a bold step taken by the Government and the Country is set to witness a new era in business operations. “There will not be any impact on Manpasand Beverages due to this move as the company has always offered products at affordable price points and continues to focus on smaller packs which range between Rs 5 to Rs 10. Fortunately there is no shortage of these denominations in the Country,” added Mr. Singh.

During the quarter, company has completed setting-up of its new manufacturing facility in Ambala, Haryana and also raised Rs 500 crore through QIP for their expansion plan. Manpasand Beverages operates in the Indian packaged juice industry whose size is about Rs. 8,000 crore and it has been growing at more than 30% per annum in last few years and will maintain that pace in future as well.

The growth potential for organised packaged fruit drink players is very high due to low penetration and small share of the total market which is largely catered to by unorganised players.