Patanjali Foods Q2 Results | Net profit down 31.6% YoY to Rs 112.3 crore

Patanjali

FMCG company Patanjali Foods on November 12 reported a 31.6% decrease in its net profit to Rs 112.2 crore in the second quarter ended September 30, 2022 (Q2 FY23), against Rs 164.3 crore registered in the same quarter last year (Q2 FY22).

Its revenue from operations zoomed 42% to Rs 8,514 crore from Rs 5,995 crore in the corresponding quarter last year, the company said in an exchange filing.

Total Income stood at Rs 8,524 crore during the quarter, up by 41.82% from Rs 6,010 crore in Q1 FY22.

For the quarter that ended September 30, 2022, EBITDA stood at Rs 205.15 crores with Rs 153.63 crores of Profit Before Tax.

The Foods business achieved sales of Rs 2,399.66 crores contributing 37.18% of the total branded sales of the Company. The branded sale including the institutional segment achieved sales of Rs 6,453.45 crores contributing 77.02% of the Total Sale of Products of the Company for the period.

On the profitability front, the company said the quarter witnessed multiple headwinds in the edible oil segment. Due to the macro factors affecting the demand-supply situation in edible oils, there was a steep decline in Edible Oil prices during the quarter.

Commenting on its performance in the quarter, it said the company demonstrated a sustained performance despite being in a challenging consumption environment with a volatile, downward price regime.

The company's statement also mentioned that the overall performance continues to show an uptrend due to the robust execution of its strategy to grow the Food & FMCG business by driving its penetration through the distribution strength of the edible oil business and induction of a ‘Food portfolio’ from PAL.

It mentioned that during the quarter, the revenue share of Food & FMCG has gone up to 28.18%.

The company is positive on its outlook going forward.

"Our focus for the next few quarters is to continue the accelerating growth of the highly profitable food vertical which shall ensure overall growth of the EBIDTA margin of the Company. Patanjali Ayurved Limited (PFL) is confident of maintaining its growth momentum with the complete reflection of the acquired foods business in the coming quarters.

"The Company firmly believes that the food business with a large portfolio of products and robust brands across categories such as Ghee, Chywanprash, Honey, Juices, etc shall continue to grow at a higher pace keeping in mind the growing distribution network and wider availability across the retail shelf," it said.