Patanjali Foods plans higher share of food & FMCG unit; stock clocks record high

Patanjali Foods shares scaled a record high on Wednesday, after the company suggested plans to increase its market share in its food business. The stock of Patanjali Foods, which has Patanjali Ayurved as its largest shareholder, jumped by as much as Rs 48.7, or 3.2 per cent, to Rs 1,558.2 apiece on BSE, surpassing an earlier peak touched the previous day. 

In a presentation to investors, Patanjali Foods said it aimed to boost its food and FMCG segment further after the unit contributed 28.5 per cent to its overall revenue in the first six-month period ended September 30, 2023 from, as against 18.4 per cent in the corresponding period a year ago and 20 per cent in the year ended March 2023. In FY23, the company earned 80 per cent of its revenue from edible oils and the rest from the food and FMCG business. 

The company listed responding to the evolving market with swift product launches, conducting a premiumisation drive across its businesses, and sustaining growth in oil palm plantations among its key focus areas. 

Patanjali Foods registered a 4.0 per cent EBITDA margin for the first two quarters of the current financial year with an EBITDA margin of 4.0 per cent despite a challenging business environment, aided by the increased share of its food and FMCG unit, strong growth in biscuits and confectionery, and 10.6 per cent growth in edible oil volumes, it said.

The company's revenue from the unit stood at Rs 4,440 crore for the six-month period with an EBITDA margin of 16.67 per cent.  

Patanjali Foods Q2 results

Patanjali Foods' net profit more than doubled to Rs 254.5 crore for the July-September period from Rs 112.3 crore a year ago, according to a regulatory filing.

Its quarterly revenue stood at Rs 7,845.8 crore as against Rs 8,524.7 crore for the year-ago period. 

The company roped in former Indian cricket team captain MS Dhoni as brand ambassador for its Mahakosh and Sunrich brands.

Patanjali Foods shares: Past performance 

The stock has rewarded investors with a return of 32 per cent so far in 2023, sharply outperforming a 12 per cent gain in the headline Nifty50 index.

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