Patanjali Foods Q2 profit dips 19% to Rs 420 crore, revenue rises 16% to Rs 11,406 crore

Patanjali Foods Ltd on Saturday reported a 19 per cent fall in consolidated net profit to Rs 419.76 crore for the quarter ended, despite a rise in revenue. Its net profit stood at Rs 516.69 crore in the year-ago period. Total income rose 16 per cent to Rs 11,406.49 crore in the second quarter of the current fiscal year, up from Rs 9,850.06 crore in the corresponding period of the preceding year, according to a regulatory filing. Of total revenue from operations, the edible oil business contributed Rs 8,532 crore, while the FMCG segment generated Rs 2,923 crore. Total operational expenses went up to Rs 10,997.51 crore from Rs 9,344.97 crore, resulting in a decline in profit during the September quarter.

During the first six months of this fiscal, the net profit rose to Rs 755.49 crore from Rs 697.05 crore in the year-ago period. Total income grew to Rs 22,748.38 crore during April-September this fiscal from Rs 18,629.08 crore in the corresponding period of the preceding year. Sanjeev Asthana, Chief Executive Officer of Patanjali Foods, said the performance in the September quarter reflected the resilience of its integrated business model across branded edible oils, upstream oil palm plantations and growing FMCG portfolio. "Amid evolving consumption patterns, Doodh Biscuits, Nutrela, Saundarya and Dant Kanti sustained their growth trajectory, supported by our diversified portfolio and extensive distribution network," he said.

Asthana pointed out that the second quarter also saw a shift in festive demand. Navratri began in October this year, compared to September last year, while Pitru Paksha in September deferred some festive-led purchases. "With the recent festive season and the upcoming wedding season, we expect growth momentum to continue," he said. Asthana said the company's focus remains on strengthening its business fundamentals through premiumization, scaling edible oils and FMCG portfolio, and expanding oil palm plantation business. "Alongside these priorities, improving operational efficiencies will remain important in enhancing earnings quality and driving sustainable growth," he added.

Incorporated in 1986, Patanjali Foods is one of India's leading FMCG players. The company operates in edible oils, FMCG, and wind power generation. It sells products under different brands including Patanjali, Ruchi Gold, Nutrela, Dant Kanti, Mahakosh and Sunrich.