Patanjali Foods announced a huge rise in its net profit of Rs 255 crore on Wednesday, which resulted in a twofold year-over-year (YoY) profit for Q2FY24.
The business said that in addition to better operational efficiency, the main cause of the dramatic increase in net profit was other revenue, which increased to Rs 24 crore from Rs 10.5 crore the previous year.
However, its operating revenue fell 8% year over year to Rs 7,822 crore. Earnings before interest, taxes, depreciation, and amortization, or EBITDA, quadrupled to Rs 395 crore in the company’s operational profit each year. The operating profit margin increased to 5.05 percent, a remarkable increase of 276 basis points.
Compared to Rs 8,371 crore a year earlier, Q2FY24’s total expenditures for the quarter, including financing charges, were Rs 7,511 crore.
Exports generated Rs 41.65 crore in income for the organization. Products from Patanjali are sent to 23 different nations.
The quarter’s raw material expenditures decreased to Rs 5,145 crore from Rs 6,712 crore a year earlier, which helped the profitability increase.
The primary edible oils business had a double-digit decline in sales, which affected the total performance. The business’s income from edible oils decreased 13.4% year over year to Rs 5,421 crore, according to the statistics.
The food and FMCG industries had a 5.5% increase in sales to Rs 2,487 crore. Additionally, the food and FMCG segment’s share of overall sales increased sequentially from 25.14 percent to 31.80 percent.
The previous quarter saw price pressure on Patanjali’s edible oil division, which negatively impacted overall profitability.
According to Sanjeev Asthana, CEO of Patanjali Foods, “I am optimistic about the upcoming festival seasons and increase in consumer spending to drive the growth in the coming quarter.”
Asthana declared: “The first half of the fiscal year has ended on a positive note, despite the challenging macro and operating environment.” I’m happy to report that the firm did well on profitability indicators throughout the quarter, as seen by the robust QoQ rise of both EBITDA and PAT. Despite a flat sequential performance in terms of operating revenue/total income, there has been increase.
According to the corporation, high import levels that affected margins and revenue were the primary cause of the price pressure.
The physical and futures markets showed distinct price variations, although overall the price trend was similar to what was seen in the June quarter.
