Patanjali Foods slips after Q1 profit tanks 64%

Shares of Patanjali Foods fell more than 2% in morning trading on August 14 after the company posted a 64% drop in net profit to Rs 87.75 crore for the first quarter of this financial year due to oil prices. eat less.
Its net profit stood at Rs 241.25 crore in the previous year period.
Shares of Patanjali Foods traded down 2.47% to Rs 1,261.5 on BSE at 09:50.
Total revenue rose to Rs 7,810.5 billion in the April-June 2023-24 quarter from Rs 7,370.07 in the same period a year ago, the company said. The edible oil segment recorded revenue of Rs 5,890.73 crore. The filing said: “Despite the decrease in revenue from cooking oil, sales volume still increased by 1.4 thousand tons, recording a growth of 35.80% over the same period last year.” The company said the cooking oil industry was hit by significantly lower prices compared to the previous quarter as the sudden drop in prices left the industry with high-priced inventories as well as inventories in transit. “Additionally, government intervention in lowering prices despite holding high-priced inventories negatively impacted earnings for the quarter. However, the company believes this is purely cyclical and due to events witnessed by the industry during the quarter,” said Patanjali Foods.
Established in 1986, Patanjali Foods (formerly known as Ruchi Soya Industries Ltd) is one of the leaders in the edible oil segment and also aims to become a major player in the FMCG market. It sells products under the brands Patanjali, Ruchi Gold, Nutrela.
“Our Food & FMCG segment is performing in line with our goals. We have enjoyed healthy growth and new product launches will continue to drive our growth. We consider the Food & FMCG segment to be a major contributor to our revenue and margin,” said Patanjali Foods CEO Sanjeev Asthana.
The company’s shares are up 5% on a year-to-date basis, while 1-year yields are up 12%.