Patanjali Foods Q2 Results | Net profit down 31.6% YoY to Rs 112.3 crore
Patanjali Foods reported a 64% decline in net profit for Q1, with net profit falling to Rs 88 crore from Rs 241 crore in the previous year. Despite a 7.7% increase in total revenue from operations to Rs 7,767 crore, total expenses rose by 9.3%, attributed to higher purchases of stock-in-trade and employee costs.
The company’s edible oil segment saw sales of Rs 5,890.73 crore, though it faced challenges due to falling prices of cooking oils, resulting in lower profitability. The edible oil industry experienced a sudden drop in prices, leaving companies with high-priced inventory, negatively affecting their profitability.
Patanjali’s packaged foods business, including honey and juices, witnessed a three-fold increase in revenue, while the revenue from the edible oils segment decreased by almost 13%. The company’s stock closed down by nearly 2.3% at Rs 1,293.4 prior to the results announcement, despite having risen nearly 23% in the April-June quarter.
Patanjali Foods, previously known as Ruchi Soya Industries Ltd, is a significant player in the edible oils segment. It aims to expand its presence in the FMCG and FMHG sectors, with CEO Sanjeev Asthana expressing optimism about growth and new product launches.
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