Patanjali Foods posts 12.5% growth in Q4 net profit

Patanjali Foods posted a standalone net profit of Rs 263.7 crore and revenue from operations of Rs 7,872.9 crore in the quarter ended March.

Patanjali Foods reported a 12.5 percent year-on-year (YoY) rise in its standalone net profit and 18.1 percent increase in standalone revenue for the fourth quarter of FY23.

It posted a standalone net profit of Rs 263.7 crore and revenue from operations of Rs 7,872.9 crore in the quarter ended March. Net profit was Rs 234.4 crore and revenue was Rs 6,663 crore a year ago.

Net profit fell by 2 percent and 0.67 percent quarter on quarter (QoQ) in the quarter ended March. The company had posted a standalone net profit of Rs 269.2 crore and revenue of Rs 7,926.6 crore a quarter ago.

Revenue from Food and FMCG vertical saw the highest growth YoY, touching Rs 1,805.18 crore in Q4FY23 from Rs 452.25 crore. That from Edible Oil and Wind Turbine verticals fell over the same period. Revenue from Edible Oil was Rs 6,058.98 crore, a fall from Rs 6,201.78 crore a year ago; and revenue from Wind Turbine was Rs 8.76 crore, a drop from Rs 9.69 crore a year ago.

Other income shot up to Rs 90.03 crore from Rs 12.47 crore a year ago.

"The food products under Patanjali brand are gaining the market acceptance to sustain the growth as recorded in last 3 quarters of FY 2022-23 majorly after completion of food business acquisition. EBIDTA earnings on food revenue remains to be strong and robust as it crosses over 13.70% of overall food business revenue," stated the company's press release following the earnings announcement.

The total income in FY23 stood at Rs. 31,821.45 crore against Rs 24,284.38 crore in FY 2021-22. Profit before tax (PBT) rose to Rs 1,178.96 crores in Y23 against Rs. 1,074.38 crore in the previous fiscal.

"The share of FMCG business in overall revenues grew exponentially to Rs 6,218.08 crores against Rs. 1,683.24 crores in FY22 and reached 19.72% of the overall revenue against 6.95 % in the previous year," the company said.

"The company focus on premiumization, offering range and expanding distribution across multiple channels is reflected in revenues and profitability of Foods business. The food business EBITDA stood at Rs 1,136.60 crore (18.28% of the food revenue) in FY2023 against Rs 189.04 crore (11.23% of food revenue) in FY 2022. The FMCG Business contributed 72% of the overall EBITDA of the company in line with the objective of improving the quality and sustainability of profits," it added.