Patanjali Foods’s Profit Rises By 15% To Rs 269 Cr
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Patanjali Foods’s Profit Rises By 15% To Rs 269 Cr

Patanjali Foods reported a 15 per cent increase in net profit to Rs. 269.19 crore for the quarter ending December 2022 on Wednesday. This compares to a net profit of 234.07 crore in the previous year, according to the company’s regulatory statement.

Revenue from operations increased by 26 per cent to Rs 7926.64 crore, up from Rs 6280.46 crore in the previous fiscal quarter.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 97.49 per cent to Rs 405.15 crore in the quarter. EBITDA margin for the current quarter was 5.11 per cent, up 270 basis points from 2.41 per cent in Q2FY23.

“After sharp volatilities and downtrend witnessed in the previous quarters, there has been some stability and revival observed in the quarter ended 31 December 2022,”  said Patanjali Foods in its regulatory filing.

“The macro challenges faced earlier in terms of geo-political standoff, soaring inflation, supply constraints, high interest rates and demand concerns have waned a bit,” it added.

In the December quarter, the food goods and other business division recorded sales of Rs. 1,570.08 crore, accounting for 19.81 per cent of the company’s revenue. The edible oils division had sales of Rs 6,066.51 crore, accounting for 76.53 per cent of the company’s revenue.

The company’s branded sales, including the institutional segment, were Rs 6,447.81 crores, accounting for 81.91 per cent of the company’s total product sales for the period.

In the December quarter, the oils and vanaspati business reported revenues of Rs. 6,066.51 crore and an EBIT of Rs. 176.79 crore.

“The prices of edible oils, the biggest portion of the company’s revenue, stabilised and recovered from the sharp decline witnessed in Q2. Urban demand for FMCG products has been steady while rural demand continues to contract. Festive and marriage season revived the demand for the food products during this quarter,” the company said in its filing.

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