Regaal Resources Posts 47% Rise in Q1 Profit on Higher Margins

New Delhi: Maize-based specialty product manufacturer Regaal Resources has reported a 47 per cent jump in first-quarter net profit to Rs 13.32 crore, helped by rise in value-added margins.

Net profit stood at Rs 9.06 crore a year earlier, the company said in a statement.

Total income fell to Rs 202.57 crore from Rs 247 crore, while expenses dropped to Rs 185 crore from Rs 235 crore.

The company’s value-add margin rose 1,477 basis points to 39.8 per cent, aided by a lower contribution from trading income, Chairman and Managing Director Anil Kishorepuria said.

Maize crushing volumes climbed 7.6 per cent to 69,689 tonnes from 64,770 tonnes a year earlier.

Exports accounted for 10.4 per cent of revenue, more than double the 4.9 per cent share a year ago.

During the quarter, Regaal doubled its crushing capacity to 1,650 tonnes per day from 825 tonnes, commissioned a 180-tonne-per-day liquid glucose plant and a 50-tonne-per-day maltodextrin powder facility, and expanded its co-generation power capacity to 15.8 megawatts from 7.1 megawatts.

“We expect the benefits of these investments to begin reflecting from the second quarter onwards, through higher utilisation and improved operating efficiencies,” Kishorepuria said.

The company said it plans to expand its value-added portfolio with modified starch products, including dextrose anhydrous, dextrose monohydrate and hydrol.

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