Patanjali Foods cracks ~3% as Q1 net profit tanks 64% y-o-y

14 Aug 2023 , 02:59 PM

Patanjali Foods shares fell nearly 3% in morning trade on August 14 after the business reported a 64% y-o-y drop in net profit to Rs 87.75 crore in the first quarter ending June 2023, due to a drop in cooking oil prices.

The edible oil company said in a regulatory statement on August 11 that total income increased to Rs 7,810.50 crore in the April-June quarter of 2023-24 from Rs 7,370.07 crore in the previous corresponding quarter. The edible oil segment made Rs 5,890.73 crore in sales.

According to the business, the edible oil industry was impacted owing to much lower pricing than the previous quarter due to a precipitous drop in prices, which left the industry with high-priced inventory on hand as well as stock in trade.

‘Furthermore, government’s announcement to lower prices despite holding high-priced inventory negatively impacted profitability during the quarter. However, the company believes that this is purely cyclical and as a result of events that occurred in the industry during the quarter,’ Patanjali Foods stated.

At around 2.45 PM, Patanjali Foods was trading 2.62% lower at Rs 1,260 per piece, against the previous close of Rs 1,293.90 on NSE.

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