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HomeCURRENT AFFAIRSBUSINESSPatanjali Foods Ltd reports PAT of ₹ 254.54 crores in Q2FY24

Patanjali Foods Ltd reports PAT of ₹ 254.54 crores in Q2FY24

Dive into the financial triumph of Patanjali Foods Limited, witnessing remarkable Q2 FY24 results

Patanjali Foods Limited Press Release-Q2 FY24
EBITDA of ₹ 419.20 cr with a growth of 97.75% QoQ and 104.34% YoY
PAT growth of 126.69% and 190.06% on YoY and sequential basis, respectively

08th November 2023, Mumbai – Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) has announced its unaudited financial results for Quarter/ Half year ended 30th September 2023.

Q2FY24 Revenue from Operations
₹ 7,821.89 cr.
Q2FY24 Food & FMCG Segment Revenue
₹ 2,487.62 cr.
₹ 419.20 cr.
₹ 379.32 cr.

Key Highlights Q2FY24 and H1FY24

  • Onboarded world renowned cricketer, MS Dhoni as a brand ambassador for branding and marketing campaigns of its Mahakosh & Sunrich brands. MS Dhoni’s association complements the health-oriented nature of the company’s edible oil range, in harmony with the overarching vision of the Patanjali Group.
  • The company is actively in the process of developing “PFL-Employee Stock Option Plan 2023”, which will be rolled out in near future.
  • In Q2FY24, the total revenue from operations stood at ₹ 7,821.89 cr and ₹ 15,588.98 cr in H1FY24.
  • The Food & FMCG segment achieved revenue of ₹ 2,487.62 cr in Q2FY24. The contribution of our Food and FMCG segment to the total revenue from operations increased to 31.80% in Q2FY24 from 25.14% in Q1FY24 and 27.7% in Q2FY23.
  • The EBITDA for Q2FY24 increased by 97.75% QoQ and stood at ₹ 419.20 cr while EBITDA margins improved to 5.34% vs 2.71% in Q1FY24 and 2.41% in Q2FY23.
  • The PAT for the quarter was ₹ 254.54 cr vs ₹ 112.29 cr in Q2FY23 and the PAT margins improved to 3.24% from 1.12% in Q1FY24 and 1.32% in Q2FY23.
  • The Company achieved export sales of ₹ 41.65 cr during the Quarter. The products are exported to 23 countries.

Food & FMCG

  • There is a continued focus on the growth of the Food & FMCG segment which is reflected in various performance indicators.  
  • In H1FY24, the Foods and FMCG segment achieved sales of ₹ 4,440.09 Cr and has grown by 53.65% YoY.
  • In Q2FY24, the segment recorded a sale of ₹ 2,487.62 Cr contributing to 31.8% of revenue from operations of the company vis-à-vis 25.14% contribution in Q1FY24.
  • The segment recorded a YoY growth of 5.48% compared to Q2FY23.
  • In Q2 FY24, the segment recorded an EBITDA of ₹ 379.32 cr with an EBITDA margin of 15.25% despite pricing pressure.

Edible Oil

  • The Edible Oil segment faced an ongoing pricing pressure during Q2 mainly due to excessive imports that led to elevated inventory levels, impacting both revenue and margins. The price trend observed in Q2 remained consistent with that of Q1, displaying divergent price fluctuations between the Physical and Futures markets. The prices of edible oil continue to have a cooling effect.
  • The segment achieved sales of ₹ 5,421.45 Cr during Q2FY24 registering a sequential as well as year-on-year degrowth due to further fall in the edible oil prices.
  • The volumes increased by 2.95% yoy in Q2FY24 and by 10.59% yoy in H1FY24.
  • Segment EBITDA stood at ₹ -27.08 Cr against ₹ -435.23 Cr in Q2FY23 and ₹ -97.81 Cr in Q1FY24.
  • The Premium Oils segment has demonstrated remarkable growth, with a yoy growth of 49%, which reflects the positive response and demand for the company’s premium oil products in the market.
  • Branded sales continue to thrive, contributing more than 75%of the total sale value of Edible Oils as compared to 75.92% in Q1FY24 and 75.81% Q2FY23.

Management Commentary

Sanjeev Asthana, CEO, Patanjali Foods Limited said “Despite the challenging macro and operating environment, the first half of the fiscal year has ended on a positive note. I am pleased to inform that in the quarter the company performed well on the profitability metrics with both EBITDA and PAT showcasing strong growth on QoQ basis. This growth is despite a flat sequential performance in terms of revenue from operations/total income.

The company’s Food & FMCG segment is performing in line with the targets and saw further expansion of higher contribution in the overall financial performance. This improvement is in line with the tactical shift in our business operations.

The growth in the quarter has come across multiple parameters. The company achieved new heights in its quarterly sales for TSP, deeper penetration of its prominent biscuit brands and positive response from customers for the multiple product launches.

The company’s strategy to increase penetration across different categories of customers through its wide bouquet of offerings, premiumization and multiple price points and strong distribution network is working to be a sustainable model for growth. I am optimistic about the upcoming festival seasons and increase in consumer spends to drive the growth in the coming quarter.

To increase brand awareness and brand penetration, the company has signed well-known cricketer, Mr. Mahendra Singh Dhoni, as a brand ambassador for its range of Soy, Mustard and Sunflower oils range. Mr. Dhoni and Patanjali share common values, and both enjoy popularity and credibility with the public at large.”

About Patanjali Foods Limited

Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) is one of India’s top FMCG and FMHG player in India. The company is present in Edible Oils, Food & FMCG and Wind Power Generation segments via a bouquet of brands like Patanjali, Ruchi Gold, Nutrela, etc.

The company is focused on investing in building brands and expanding its product portfolio and towards this, the Company offers food products across multiple categories, price points and segments to cater to a wide spectrum of consumer preferences.

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