Patanjali Foods’ net profit zooms nearly 200%; revenue falls 8.3%

Patanjali Foods today said its net profit for the first quarter tripled year-on-year from 87.75 crore to 262.9 crore. Operating revenue came in 8.3% lower at 7,173 crore, compared to 7,767 crore in the year-ago period.

“The performance was largely driven by reduced volatility in edible oil prices along with stable performance in the food and fast-moving consumer goods business,” Patanjali said in the earnings statement.

The edible oil business swung to a profit before tax of 193.8 crore from a loss of 146.6 crore a year ago. Profit before tax of food and fast-moving consumer goods (FMCG) business fell from 350.6 crore last year to 173.4 crore.

Patanjali listed on the stock exchange by acquiring Ruchi Soya, a company that had gone bankrupt despite owning popular brands such as Ruchi Gold, Nutrela, and Soyumm. The edible oil business now contributes nearly 75% of the company.

On the food and FMCG business, the company said it continues to focus on the biscuits business, with sales from the ‘Doodh’ brand growing 7% year-on-year while premium biscuits such as Ragi, 7 Grain and Digestive biscuits also showing growth.

Patanjali also registered double digit growth in the nutraceuticals business, helped by new supplement launches.

The company said it undertook various marketing initiatives to enhance brand awareness and recall.

“Nutrela co-sponsored the Kolkata Knight Riders. Mahakosh and Sunrich brands launched strategic campaigns during the IPL. This initiative bolstered television commercial reach and strengthened brand presence,” the company said.

Patanjali’s board recently approved the acquisition of Patanjali Ayurved’s home and personal care business at 1,100 crore.

“The acquisition will lead to a consolidation of the ‘Patanjali’ brand FMCG products portfolio. It has 91 products and 186 SKUs across dental care, skin care, home care, and hair care,” the company said.