Patanjali Ayurved Ltd.’s second-quarter revenue from operations declined due to lower sales in the fast-moving consumer goods segment.
FMCG sales dropped after the company divested the food retail business to one of its subsidiaries in a slump sale in July.
Standalone revenue of the Baba Ramdev-led ayurvedic company fell 21% sequentially to Rs 1,899.8 crore in the September quarter, according to its exchange filing. Revenue fell 23% when compared to Q2 of the previous year.
“Previous year/period figures have been restated/regrouped/reclassified wherever necessary in line with the financial results for the quarter ended Sept. 30, 2022, which are not comparable due to the slump sale of food (manufacturing and retail) business w.e.f. July 1, 2022,” it said.
According to company disclosures, sales of ayurvedic products rose 9.5% to Rs 276.5 crore.
Sales from fast-moving consumer goods businesses, however, fell 27% to Rs 1,555.1 crore in the three months to September.
On July 1, in a major restructuring exercise, the company transferred assets relating to its food business, including land and buildings, movable fixed assets, and inventories, to Patanjali Foods Ltd. for Rs 690 crore.
According to the transfer agreement, the company realised a gain of Rs 61.6 crore, which has been disclosed as an exceptional item in the results.
The company has stopped food retail and manufacturing of those products as of July, the company said in a statement.