 "Patanjali Foods Q2 results: 126% jump in net profit, revenue drops 8%")
Haridwar-based Indian FMCG company, Patanjali Foods, reported a 126 per cent year-on-year (y-o-y) jump in net profit to Rs 254.5 crore in the second quarter ended September 30.
The company had reported a net profit of Rs 112.3 crore in the same period last year.
However, the company’s revenue dropped 8.1 per cent to Rs 7,821.9 crore from Rs 8,514.1 crore in the year-ago period.
The Food and FMCG segment achieved a revenue of Rs 2,487.62 crore in the second quarter, registering a 5.4 per cent increase from the year-ago period. Revenue in the Edible Oils segment reported a degrowth of 13.38 per cent to Rs 5,421.45 from Rs 6,259.41 in the year-ago period.
“The edible oil segment faced an ongoing pricing pressure during Q2 mainly due to excessive imports that led to elevated inventory levels, impacting both revenue and margins,” stated a release by the company.
“The price trend observed in Q2 remained consistent with that of Q1, displaying divergent price fluctuations between the physical and futures markets. The prices of edible oil continue to have a cooling effect,” it added.
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The company achieved export sales of Rs 41.65 crore during the quarter. The products are exported to 23 countries.
“Despite the challenging macro and operating environment, the first half of the fiscal year has ended on a positive note. The company’s Food & FMCG segment is performing in line with the target,” said Sanjeev Asthana, CEO, Patanjali Foods.
“The company’s strategy is to increase penetration across different categories of customers through its wide bouquet of offerings, premiumisation and multiple price points, and strong distribution network. I am optimistic about the upcoming festival seasons and increase in consumer spending to drive the growth in the coming quarter,” he added.