Patanjali Foods shares edge lower even as Q4 net rises 13%, cooking oil biz thrives

Patanjali Foods shares slipped nearly two percent on May 31 in intraday trade, a day after the firm reported a 12.49 percent year-on-year (YoY) jump in net profit at Rs 263.71 crore for the fourth quarter that ended March 31, 2023. In the corresponding quarter last year, the company posted a net profit of Rs 234.43 crore.

In the March quarter, total revenue stood at Rs 7,872.92 crore during the period under review, up 18.15 percent against Rs 6,663.72 crore in the corresponding period of the preceding fiscal.

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

The food business EBITDA stood at Rs 1,136.60 crore (18.28 percent of the food revenue) in FY23 against Rs 189.04 crore (11.23 percent of food revenue) in FY22.

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The FMCG business contributed 72 percent of the overall EBITDA of the company in line with the objective of improving the quality and sustainability of profits.

The company achieved quantum growth in the edible oil business, which grew by 21 percent to 1.91 million tonnes (MT) in volume terms and achieved revenue of Rs 25,634.45 crore against 1.63 million tonne and Rs 22,882.76 crore revenue in FY22. The EBITDA margin on oil business in FY23 stood at Rs 230.26 crore despite the challenges around international market volatility.

FY23

On an annualised basis, Patanjali Foods recorded total income of Rs 31,821.45 crore by posting 31.04 percent growth compared to the previous year. The profit before tax margin grew 9.7 percent in FY23 to Rs 1,178.96 crore against Rs 1,074.38 crore in FY22. The revenues for the food and FMCG segment stood at Rs 6,218.08 crore against Rs 1,683.24 crore in the year-ago period.

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Profit before tax and profit after tax increased during FY23 by around 10 percent although EBIDTA marginally decreased due to a sharp fall in edible oil prices, the company added.

The board of directors has recommended a dividend of Rs 6 per share for FY23. The results came after the close of the market hours. Shares of Patanjali Foods Ltd ended at Rs 1,023.00, up by Rs 9.10, or 0.90 percent on the BSE.