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Net Profit Dips, Margin Contracts On High Costs


During the quarter, the demand environment remained challenging with persisting high inflation along with fiscal measures taken by the central government including continuation of stock limits on oils and oilseeds, governments insistence on reduction in retail edible oil prices and passing of price benefits to the consumers, the company said.

Sales of Patanjali Foods’ food business, including the business acquired from its parent Patanjali Ayurved Ltd, stood at Rs 2,399.66 crore during the quarter contributing 37.18% to total branded sales.

On July 1, 2022, Patanjali Food completed the acquisition of foods business undertaking from Patanjali Ayurved on slump sale basis for Rs 690 crore. With the acquisition, the food product portfolio of the company has added 536 stock-keeping units over eight products categories such as ghee, staples, herbal products, honey, dry fruits, staples, spices and condiments, beverages and physically refined edible oils, including mustard oil. Overall, the food portfolio now comprises soya foods, biscuits, rusk and cookies, breakfast cereals and noodles, nutraceuticals and the foods business acquired from Patanjali Ayurved, according to the company.

Overall, the branded sales segment, including institutional segment, recorded sales worth Rs 6,453.45 crore comprising 77.02% to total sales, the company said.

During the quarter, the business mix of edible oil and food business of the company further improved to 74.66% and 28.18%, respectively, as against the previous year’s 94.20% and 11.76%, respectively.

“Our focus for the next few quarters is to continue the accelerating growth of the highly profitable food vertical which shall ensure overall growth of the Ebitda margin of the company,” the company said in a statement.

Patanjali Foods expects the food business to continue to grow at a higher pace keeping in mind the growing distribution network and wider availability across retail shelf.

Normal monsoons in most parts of the country and proactive interventions by the government and the Reserve Bank of India is expected to augur well for sustained recovery going forward, according to the company.


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