Patanjali Foods shares tank 5% after Q1 profit slumps 64% YoY

economictimes.indiatimes.com:

Patanjali Foods shares tanked nearly 5% to Rs 1,232 in Monday's trade on BSE after the company reported a nearly 64% year-on-year (YoY) drop in net profit for the quarter ended June 2023 to Rs 878 crore. However, revenue from operations rose nearly 8% YoY to Rs 7,767 crore. The sharp fall in the net profit was due to muted sales growth and a sharp deterioration in operational performance.

Meanwhile, its total expenses for the quarter rose to Rs 7,691 crore from Rs 7,038 crore a year ago. Operating profit, calculated as earnings before interest, taxes, depreciation, and amortization (EBITDA), plunged 57% on year to Rs 169 crore, and operating margin shrunk 326 basis points to 2.17%. The mainstay edible oils business reported a 13% drop in revenue for the quarter to Rs 5,891 crore.

The food and FMCG business reported an 8.2% growth in revenue to Rs 1,952 crore. The sharp fall in the EBITDA was primarily due to an operating loss in the edible oils business. The business posted an operating loss of Rs 147 crore during the quarter.

The Food & FMCG segment grew in value and volume terms and contributed around 25% of total sales. Branded sales in the quarter constituted about 71% of the total revenue of the company. Subdued market conditions prevailed in the edible oil sector due to continuous falling prices, the company said.

The company continued to maintain its market share despite a decline in revenue. However, volumes increased 36% YoY. Exports turnover surged 128% on year to Rs 162.45 crore.