Profitability of Patanjali foods declines by 32% in Q2 and was 112 cr


New Delhi: The profitability of Baba Ramdev-backed Patanjali Foods decreased in the quarter ended 30 September 2022 (Q2FY23). Q2FY23 net profit was $112.28 billion, down 31.65% from Q2FY22’s PAT of $164.27 million.

Moreover, its Q2 PAT fell sequentially from 241.25 million in Q1FY23 by a staggering 53.5%. The cooking oil division posed several challenges to the company’s profitability during the quarter.

According to a regulatory filing by Patanjali Foods, global price volatility of various edible oils, which fell by nearly $400-500 per tonne during these three months, weighed on the margins of the edible oil industry throughout the quarter. As India imports more than 60% of its cooking oil needs, there has been pressure on retail prices, which has affected profitability.

Additionally, as high inflation negatively impacted operating costs, margins were further reduced in the second quarter of 2023.

Patanjali Foods experienced significant top-line growth. In the second quarter of 2023, operating profit increased by 42.02 percent to $8,514.12 billion from $5,995.03 million last year. The company reported 18.07 percent growth in Q2 2023 compared to sales of 7,210.96 million in Q1 2010. In the second quarter of 2002, the share of the food and FMCG industry in turnover rose to 28.18 percent.

In line with the strategic goal of growing the food company, Patanjali Foods successfully completed the acquisition of the Foods business in the third quarter of September 2022.

In Q2FY23 Patanjali’s food division’s turnover was 2,399.66 billion, or 37.18% of the company’s total sales of branded products. In addition, the institutional segment, which includes branded products, had sales of 6,453.45 billion, which is 77.02% of the company’s total product sales during that period.

In addition, Patanjali’s strategic objectives began to pay off in the second quarter of 2002, with the combination of its edible oil and food businesses growing to 74.66% and 28.18%, respectively, from 94.20% and 11.76% in the corresponding period of the previous year. .

Patanjali claims that the demand environment remained difficult due to continued high inflation and monetary/fiscal measures taken by the government such as continued storage restrictions on oils and oilseeds, the government’s demand to lower the retail price of cooking oil and the fall in prices. benefits the public.

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