Patanjali Ayurved Q1 Results: Revenue Dips But Margin Expands On Lower Expenses
Sales from FMCG business fell 30% to Rs 2,129.95 crore, while ayurvedic products saw 3.5% growth.
Patanjali Ayurved Ltd.’s revenue from operations declined but margin improved on lower expenses.
Standalone revenue of the consumer goods maker fell 28% sequentially to Rs 2,411.3 crore in the three months to June, according to its exchange filing.
Patanjali Ayurved Q1 FY23 (Standalone figures, QoQ)
Net profit rose 13% to Rs 94.4 crore.
Excluding taxes and exceptional gains, net profit fell 3.8% to Rs 120.9 crore.
Operating profit rose 5% to Rs 218 crore.
Margin stood at 9% against 6.2% a quarter ago.
Total expenses dropped 29% to Rs 2,294.5 crore.
Cost of materials consumed fell 20.7% to Rs 1,471.13 crore. It rose 88% over the year earlier.
Sales from its fast-moving consumer goods business, including ghee, edible oil, rice, household care and personal care products, among others, fell 30% to Rs 2,130 crore. That implies inflation-induced downtrading as seen by peers such as Dabur India Ltd., Adani Wilmar Ltd., Colgate Palmolive India Ltd. as well.
The FMCG segment saw 20.5% rise in sales against a low base in the corresponding year-ago period.
Ayurvedic products, according to the company disclosures, saw a 3.5% jump in revenue sequentially to Rs 252.4 crore during the first quarter. It, however, fell 17.86% over the year ago as demand for such products slowly waned after its meteoric rise witnessed during the peak of the Covid-19 pandemic.
In a major restructuring exercise, the board of the company allowed transfer of its food retail business along with its manufacturing facilities to its subsidiary, Patanjali Foods Ltd. (erstwhile Ruchi Soya), on a slump sale basis for Rs 690 crore during the quarter.
“The management is confident that the company will be able to meet future liabilities from internal recourses and accrual of remaining business segment,” Patanjali said.