Baba Ramdev-backed Patanjali Foods profitability dips by 32% yoy to ₹112 cr in Q2

Baba Ramdev-backed Patanjali Foods recorded a decline in profitability for the quarter that ended September 30, 2022 (Q2FY23) period.

The company garnered a net profit of ₹112.28 crore in Q2FY23 down by 31.65% from a PAT of ₹164.27 crore in Q2FY22.

Also, sequentially, its Q2 PAT dipped by a whopping 53.5% from ₹241.25 crore in Q1FY23.

On the profitability front, the company witnessed multiple headwinds in the edible oil segment during the quarter.

In its regulatory filing, Patanjali Foods said, during the quarter, the edible oil industry witnessed pressure on margins largely attributed to the volatility in global prices of various edible oils which fell by almost $400-500 per ton in these 3 months.

As India imports more than 60% of its edible oil requirement, retail prices came under pressure taking cues from the global market impacting profitability.

Also, high inflation acted as a spoilsport by impacting operating costs that added further put pressure on margins in Q2FY23.

On the top-line front, Patanjali Foods witnessed strong growth. Revenue from operations climbed by 42.02% to ₹8,514.12 crore in Q2FY23 compared to a revenue of ₹5,995.03 crore in the same quarter last year.

Compared to revenue of ₹7,210.96 crore recorded in Q1FY23, the company registered a growth of 18.07% in Q2 of FY23.

The revenue share of the food & FMCG business has gone up to 28.18% in Q2FY23.

In September 2022 quarter, Patanjali Foods successfully completed the acquisition of Foods business in line with a strategic intent to expand the food business.

In Q2FY23, Patanjali's food business recorded sales of ₹2,399.66 crore contributing 37.18% of the total branded sales of the company.

Also, the branded sale including the institutional segment witnessed sales of ₹6,453.45 crore contributing 77.02% of the total sale of products of the company for the period.