7/31/2019 JubInd Q4FY12 Update 19May2012

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On 9th May 2012, Jubilant Industries Ltd. announced its results for Q4FY12 (12'Months'FY12). This

was the first time the merged Retail business financials were announced post merger. Although non -Retail

businesses performed exceptionally well, way ahead of estimates, however, Retail business spoiled the

entire picture with the numbers turning out to be way below estimates, especially on Operating Loss front.

Given below are the highlights of the results :

(1) Consolidated Revenues (including Retail business) for Q4FY12 came at Rs. 247.51 cr.. For12'Months'FY12, consolidated revenues (including Retail business) stood at Rs. 995.81 cr.. It is

worthwhile to note here that in the declared Results, subsidy income for opening stock of SSP

fertilizer and raw materials is not included due to DOF's Office Memorandum dated 11 th July 2011

which is being contested by the industry. In absence of such directive, revenue would have been

higher by Rs. 13.58 cr. for 12'Month'FY12 to stand at Rs. 1009.39 cr.

(2) Consolidated EBITDA Profit(including Retail business Loss) for Q4FY12 came at Rs. 2.79 cr.. For

12'Months'FY12, consolidated EBITDA Profit (including Retail business Loss) stood at Rs. 11.76 cr.. Itis worthwhile to note here that this Results does not include subsidy income for opening stock of

SSP fertilizer and raw materials due to DOF's Office Memorandum dated 11th July 2011 which is

being contested by the industry. In absence of such directive, EBITDA Profit would have been

higher by ~Rs. 9 cr. for 12'Months'FY12 to stand at ~Rs. 20.76 cr.

(3) The key highlights for the year was the strong performance of company's Performance Polymerssegment which grew its revenues by 32.5 % YoY & a stable performance of company's Agri

segment inspite of uneven monsoons affecting the entire industry. Performance Polymers segment

expanded its Operating Margins by 164 basis points YoY which is significant considering the

domestic as well as global slowdown the economy has faced in the entire year.

(4) The growth in 'Performance Polymers' segment (which includes Consumer Products-Jivanjor Brand ,Food Polymer-SPVA and Latex) can be largely attributed to better capacity utilisation of the

expanded capacities, healthy order-flow in Food Polymer segment as well as successful new

product launches in Consumer Products segment.

(5) Company's Retail business numbers were announced for the first time post merger and they turnedout to be very dismal. Retail business attained a Revenue of Rs. 359.12 cr. for FY12 which translates

to a YoY growth of just 14.3 % which is very low considering the fact that one new Mall-cum-

Hypermarket was opened by the company in July'2011. In other words, it simply means that

compay's Retail business has turned out almost flat-to-negative SSSG (same-store-sales-growth)

which doesn't augur well for the long-term sustainability of the business when seen in the backdropof the small scale of operations, 2nd largest marketshare company enjoys in Bangalore as well as

aggressive promotional campaigns that it has undertaken since January'2012.

(6) Operating Loss for Retail business stood at Rs. 98.59 cr. v/s Rs. 50.05 cr. of last fiscal. Although thecurrent year's figures include a goodwill amortisation expense worth Rs. 12.37 cr., but, even

excluding that, an Operating Loss figure of Rs. 86.22 cr. doesn't speak highly of Retail operations of

the company. Its worthwhile to note here that after cotinuous improvement in OPM of Retail

operations since inception, this is the first time company has suffered heavily on Operating front

and the main reasons for the same could be the aggressive promotional campaigns not turning

out the expected volumes as well as rising competition requiring aggressive discounts to be

offered on products.

7/31/2019 JubInd Q4FY12 Update 19May2012

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