Patanjali Foods Q4FY24 profit drops 22% to Rs 206 cr due to weak demand
Mumbai: Patanjali Foods, co-founded by Yoga guru Baba Ramdev and Acharya Balkrishna, reported a 22% drop in fourth-quarter profit on Tuesday, mainly due to weak demand that hurt overall sales in its core edible oils business and rising expenses.
The profit for the Ruchi Gold oil manufacturer decreased to Rs 206 crore (approximately $25 million) for the quarter ending March 31, down from Rs 264 crore the previous year, reported Reuters.
Increased prices of everyday items like milk and wheat flour have reduced consumer spending in rural India, affecting both essential and non-essential purchases.
Revenue from Patanjali's edible oils segment declined by nearly 9% to Rs 5,889 crore, which hindered overall revenue growth.
Total expenses for the company increased by about 6% to Rs 8,048 crore. Nonetheless, the company remains hopeful for a rise in rural demand in the upcoming quarters.
In contrast, rival Adani Wilmar, the maker of Fortune cooking oil, reported a 67.5% increase in its fourth-quarter profit earlier this month.
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