Shares of Patanjali Foods Limited, backed by yoga guru Ramdev, experienced a 5 percent decline in morning trade on February 9, subsequent to the company’s report of a 19.6 percent year-on-year drop in net profit, amounting to Rs 216.5 crore for the December quarter.
The company’s revenue remained relatively stagnant, witnessing a slight decline of 0.2 percent to Rs 7,910.7 crore compared to the same period last year.
In addition, the FMCG and edible oil company’s EBITDA decreased by 6.5 percent, settling at Rs 344.1 crore. The EBITDA margin stood at 4.4 percent, slightly lower than the 4.6 percent recorded in the previous year. (EBITDA refers to earnings before interest, tax, depreciation, and amortization.)
Despite the overall decline, the food and FMCG segment showcased promising performance, reporting its highest quarterly revenue of Rs 2,498.62 crore, representing a substantial growth of 64.05 percent compared to the previous year’s figure of Rs 1,523.11 crore.
Meanwhile, the edible oil segment achieved sales of Rs 5,482.64 crore, demonstrating a sequential topline growth of 1.13 percent.
The dip in quarterly profit highlights the challenges faced by Patanjali Foods Limited amid evolving market dynamics, signaling a need for strategic adjustments to navigate through the competitive landscape.
