Mumbai: Patanjali Foods Ltd reported a 64 percent drop in its net profit, amounting to Rs 87.75 crore during the first quarter of the current fiscal year the net profit for the same period in the previous year was Rs 241.25 crore.
This decline was attributed to a decrease in the prices of cooking oils.
Despite the decline in net profit, the company's total income increased to Rs 7,810.50 crore in the April-June quarter of 2023-24, compared to Rs 7,370.07 crore in the corresponding period of the previous year.
The edible oil segment contributed substantially to the company's revenue, recording sales of Rs 5,890.73 crore, as reported in a regulatory filing.
"Despite edible oil revenue degrowth, the sales volume increased by 1.4 lakh tonnes registering a growth of 35.80 percent year-on-year," the filing said.
The edible oil industry was impacted by significantly lower prices than the previous quarter due to a sudden fall in prices which left the industry with high-price inventory in hand, as well as stock in transit, the company said.
"Further, Government intervention in lowering prices in spite of holding high-priced inventory impacted profitability negatively during the quarter. However, the company is of the view that this is purely cyclical in nature and on account of events that the industry witnessed in the quarter,” Patanjali Foods said.
Established in the year 1986, Patanjali Foods, previously recognized as Ruchi Soya Industries Ltd, has been a prominent participant in the edible oils industry. The company's ambitions extend beyond the edible oils sector, as it strives to emerge as a significant contender in the Fast-Moving Consumer Goods (FMCG) and Fast-Moving Health Goods (FMHG) sectors. Patanjali Foods markets its products under various brands, including Patanjali, Ruchi Gold, and Nutrela.
"Our Food & FMCG segment is performing in line with our targets. We have been growing at a healthy rate and our new product launches will boost our growth further. We see Food & FMCG segment to be a major contributor to our revenue as well as margins," Patanjali Foods CEO Sanjeev Asthana said.
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