Patanjali Foods slips despite reporting stable performance in its Q4 update

Patanjali Foods slid over 3.80 per cent on BSE on Monday (April 15, 2024) after the FMCG announced in its Q4 update that its performance remained stable on a quarterly basis.

The Patanjali Foods stock dipped by 3.83 per cent to the day's low of Rs 1,293.75 on Monday after closing at Rs 1,345.25 on Friday.

The stock that began its journey at Rs 1,311.05 was trading lower by 1.88 per cent, or Rs 25.25, at Rs 1,320.00 at 11:26 am on Monday.

Patanjali Foods is one of the leading manufacturers and marketers of the healthy range of edible oils, and is also a pioneer of soya foods in India.

What does Patanjali Foods' Q4 update say?  

Patanjali Foods' performance in Q4 remained stable on a quarterly basis.

Its performance was boosted by good performances of its segments such as edible oil, and food and FMCG.

Edible oil

The segmental volume growth of the edible oil segment is in mid-single digits Year-on-Year (YoY).

The segment's earnings were modest as they registered single-digit growth, and it clockedfavourable EBITDA margins Quarter-on-Quarter (QoQ).

Its branded sales accounted for more than 77 per cent of the value of total edible oil sales.

According to the trend of the last quarter, export sales were good in this quarter.

Food & FMCG  

The food and FMCG segment recorded high-single digit revenue growth. Its AUR and EBIDTA margins were stable.

The segment's contribution was same as last quarter at 32 per cent.

The food and FMCG segment showed growth due to an increased urban demand.

The company has expectation of an increase in rural demand in the coming quarter.

The demand picked up due to a promising monsoon season, and an increase in rural wages.

The company's biscuit portfolio continued to perform well. 

It has achieved double-digit growth achieved due to excellent response (YoY).

The company's ghee and dry fruit sales remained stable in Q4.

Its saffron and beverage sections continued their strong performance.

The comoany reported strong double-digit growth (YoY) in its nutraceuticals section.