Baba Ramdev-backed Patanjali Foods Q2 profit down 32% at ₹112 crore

In its regulatory filing, Patanjali Foods said during quarterThe edible oil industry witnessed margin pressure largely due to volatility in global prices of various edible oils, which fell by around $400-500 per tonne in these 3 months. As India imports over 60% of its edible oil requirement, retail prices came under pressure due to cues from the global market affecting profitability.

Also, high inflation Acted as poor play by impacting operating costs, which put further pressure on margins in Q2FY23.

On the top-line front, Patanjali Foods witnessed strong growth. Revenue from Operations up 42.02% 8,514.12 crore in Q2FY23 as compared to revenue 5,995.03 crore in the corresponding quarter last year. compared to the revenue of 7,210.96 crore was recorded in Q1FY23, the company registered a growth of 18.07% over Q2 of FY23. The revenue share of Food and FMCG business has grown to 28.18% in Q2FY23.

In the September 2022 quarter, Patanjali Foods successfully completed the acquisition of the Foods business in line with its strategic intent to expand the Foods business.

In Q2FY23, Patanjali’s food business recorded sales of 2,399.66 Crore — Contributing to 37.18% of the total branded sales of the company. In addition, sales of branded sales, including the institutional segment, were witnessed 6,453.45 crore — contributing 77.02% of the total sales of the company’s products for the period.

In addition, Patanjali’s strategic initiatives started yielding results in Q2FY23 as the business mix edible oil and food business grew and improved to 74.66% and 28.18% respectively as compared to 94.20% and 11.76% in the previous year quarter.

According to Patanjali, monetary/fiscal measures taken by the government including continuation of stock limits on oils and oilseeds, emphasis on reduction in retail edible oil prices and passing on the benefit of prices to high inflation The demand environment remains challenging with consumers.

For the first six months of FY23, Patanjali achieved a net income of 15,894.75 crore as compared to 11,306.99 crore in the first half of FY22 – showing a growth of 40.57% on a year-on-year basis. EBIDTA in H1FY23 stood at 755.95 crores with 486.11 crore of profit before tax and Profit after tax of 353.55 crores.

Patanjali said the overall performance continues to grow due to the distribution strength of the edible oil business and strong execution of our strategy to grow the food and FMCG business by including ‘edible portfolio’ from PAL.

For the next few quarters, Patanjali will continue to focus on accelerating the growth of highly profitable food verticals which will ensure overall growth of Ebitda margin.

Patanjali believes that the food business with a large portfolio of products and strong brands across categories like Ghee, Chyawanprash, Honey, Juices etc. will continue to grow at a high pace considering the growing distribution network and wider availability across retail shelves Will keep ,

In addition, Patanjali continues to rely strongly on planning and forecasting tools in driving efficiency and cost optimization and continues to invest in distribution and marketing to ensure that it can take advantage of emerging opportunities.

Going forward, it said, “A normal monsoon over most parts of the country and proactive intervention by the government and RBI augurs well for sustained recovery.”

Patanjali Foods was earlier known as Ruchi Soya.

Patanjali Foods shares closed on Friday declined 1.91% at 1,267.95 on the BSE.