Earnings Review
Patanjali Foods' Jul-Sept PAT jumps 21% YoY on higher revenue, EBITDA
This story was originally published at 22:33 IST on 24 October 2024
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--Patanjali Foods Apr-Sept revenue INR 153.27 bln vs INR 155.89 bln year ago
--Patanjali Foods Apr-Sept net profit INR 5.72 bln vs INR 3.42 bln year ago
--Patanjali Foods to pay INR 8 per share interim dividend
--Patanjali Foods Jul-Sept revenue INR 81.54 bln vs INR 78.22 bln year ago
--Patanjali Foods Jul-Sept net profit INR 3.09 bln vs INR 2.55 bln year ago
By Anand JC
MUMBAI – Patanjali Foods Ltd. reported a net profit of INR 3.09 billion in Jul-Sept, 21.4% higher on year, boosted by higher revenue and record-high operating profit. However, it was lower than Antique Stock Broking Ltd.'s estimate of INR 3.2 billion.
The company's revenue from operations in the September quarter was INR 81.54 billion, 4.2% higher on year. Patanjali Foods' other income was INR 443.4 million, 85.5% higher on year. The company reported its highest ever quarterly earnings before interest, taxes, depreciation and amortisation in Jul-Sept, of INR 4.93 billion, 17.8% higher on year.
Patanjali's inventories increased to INR 2.04 billion in the September quarter from INR 330.27 million in the same quarter a year ago. The company's finance costs decreased 16.2% on year in the reporting quarter to INR 201.29 million. The cost of materials consumed was INR 47.04 billion, down 8.59% on year.
In Apr-Sept, the company's profit after tax was INR 5.71 billion. This was 67% higher than INR 3.42 billion in the same period a year ago. Revenue from operations in Apr-Sept was INR 153.27 billion, 1.7% higher on year. In Apr-Sept, the cost of materials consumed was INR 89.94 billion, down 10.69% on year.
Tax outgo in the September quarter was INR 1.18 billion, 44.7% higher on year. Deferred tax in the latest quarter was INR 96.42 million, higher than 9.64 million in the same quarter a year ago.
The foods and fast-moving consumer goods segment's earnings before interest and tax was INR 2.25 billion in the September quarter, 39.05% lower on year. The company said its food and FMCG, and edible oils segment experienced a challenging environment in the latest quarter. Patajali Foods' nutraceuticals business became profitable in Apr-Sept, with its revenue having grown 57.32% on year in Jul-Sept. Sales generated by the foods and FMCG segment in Apr-Sept was INR 42.57 billion, lower than INR 44.40 billion seen in the same quarter a year ago.
EBIT from the edible oils business was INR 2.01 billion in Jul-Sept. The company had incurred an EBIT loss of INR 683.61 million in the same quarter a year ago. Patanjali Foods' export revenue in Jul-Sept was INR 345.5 million, 35% lower sequentially and 17.05% on year.
"Overall, the industry saw lukewarm consumer sentiment, primarily due to the heavy rainfall. That said, the growth in rural consumption continued to outpace urban consumption," the company said in a statement. Consumers' preferences are pivoting from the traditional general trade channel to a new-age alternate channel of distribution. Due to this shift, Patanjali Foods saw an increase in contribution from modern trade, quick commerce and e-commerce in the latest quarter, it said. This shift in preferences has led to higher inventory levels at the traditional trade partners' end, it said.
The company's board has approved Nov. 1 as the business transfer date for its home and personal care business, after the Competition Commission of India gave approval for the same earlier this month. The company has approved an interim dividend of INR 8 per share, the record date for which is set as Nov. 4.
On Thursday, shares of Patanjali Foods closed nearly flat at INR 1,779.60 per share on the National Stock Exchange. The company announced its earnings after market hours. End
Edited by Tanima Banerjee
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