Thu. Mar 28th, 2024
Baba Ramdev Backed FMCG- Patanjali Foods Recorded 3.6% Fall In Net ProfitReuters

FMCG company Patanjali Foods announced its second quarter result for fiscal 23, wherein it posted a 31.6% decrease in its net profit to Rs 112.2 crore from Rs 164.3 crore in the corresponding quarter last fiscal.

Baba Ramdev backed company earned Rs 8,514 crore from revenue from operations, up 42% from Rs 5,995 crore in the corresponding quarter last year.

Total Income came in at Rs 8,524 crore in Q2FY23, up by 41.82% from Rs 6,010 crore in Q2 FY22. EBITDA was Rs 205.15 crores for the quarter that ended September 31, 2022.

Patanjali Foods aka Ruchi Soya Industries Limited, in its regulatory filing, said during the quarter the edible oil industry had to suffer from the volatility in global prices of various edible oils which declined by almost USD 400-500 per ton.

The foods business clocked sales of Rs 2,399.66 crores, representing 37.18% of the total branded sales of the company. The branded sale consisted of institutional segment sales of Rs 6,453.45 crores contributing 77.02% to the total sale of products of the company for the period.
The business faced numerous challenges in the edible oil sector throughout the quarter. Edible oil prices fell significantly during the quarter due to macro factors affecting the demand-supply dynamic in the industry.

According to the report, the impact of operating cost increases put additional pressure on margins in Q2FY23.

Commenting on its performance during the quarter, it claimed that despite operating in a challenging consumer environment with a volatile, downward price regime, the company showed steady performance.

During the quarter, it said the Edible Oil and Food business improved to 74.66% and 28.18% respectively compared with the previous year’s quarter of 94.20% and 11.76%.

Outlook:

“Our focus for the next few quarters is to continue the accelerating growth of the highly profitable food vertical which shall ensure overall growth of the EBIDTA margin of the Company. Patanjali Ayurved Limited (PFL) is confident of maintaining its growth momentum with the complete reflection of the acquired foods business in the coming quarters,” the company’s statement read.

“The Company firmly believes that the food business with a large portfolio of products and robust brands across categories such as Ghee, Chywanprash, Honey, Juices, etc shall continue to grow at a higher pace keeping in mind the growing distribution network and wider availability across the retail shelf,” it added.

The company further added it “continues to rely strongly on planning and forecasting tools in driving efficiency, cost optimization and continues to invest in distribution and marketing to ensure that it can leverage emerging opportunities.” Going forward, it said, “normal monsoons in most parts of the country and proactive interventions by the government and RBI augur well for sustained recovery.”

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.

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