Patanjali Foods Limited (PFL) has announced its strongest-ever quarterly and half-yearly performance for Q2 and H1, showcasing robust growth across key financial metrics.

Record-Breaking Financial Performance

PFL reported a significant increase in revenue from operations for Q2, reaching ₹9,798.84 crores, marking a year-on-year growth of 20.95% and a quarter-on-quarter growth of 11.78%. The company's half-yearly revenue from operations stood at ₹18,564.86 crores.

FMCG Segment Emerges as a Key Growth Driver

The newly classified FMCG segment, which now includes the Home and Personal Care (HPC) portfolio, demonstrated strong performance:

• Q2 FMCG revenue: ₹2,914.24 crores (34.31% QoQ growth)
• Q2 FMCG EBITDA margin: 12.28%
• H1 FMCG contribution: 27.10% of revenue from operations and 60.08% of EBITDA

Edible Oil Segment Maintains Momentum

The Edible Oil segment continued its growth trajectory:

• Q2 revenue: ₹6,971.64 crores (17.17% YoY growth)
• Q2 EBITDA: ₹245.78 crores
• Branded edible oils contributed ~76% of total segment sales

Profitability Highlights

PFL's profitability metrics showed significant improvement:

• Q2 Gross Profit: ₹1,502.65 crores (22.46% YoY growth)
• Q2 Total EBITDA: ₹603.32 crores
• Q2 EBITDA from Operations margin: 6.16%
• Q2 PBT margin: 5.13%

Key Product Performance

Several product categories within the FMCG segment reported strong results:

Strategic Developments

1. Oil Palm Plantation: PFL's area under oil palm cultivation crossed 1 lakh hectares, with 41% in the prime yielding phase.
2. GST Impact: Approximately 55% of the FMCG portfolio is expected to benefit from revised GST rates.
3. Export Growth: The company generated export revenues of ₹51.69 crores in Q2, with a presence in 23 countries.
4. Sustainability Efforts: PFL reported improvements in renewable energy use and reductions in Scope 1 and Scope 2 emissions for the previous fiscal year.

Outlook

Sanjeev Asthana, Chief Executive Officer of Patanjali Foods Limited, commented on the results: "On the back of sound business strategies implemented in the previous few quarters, the company reported best-ever financial performance on various parameters, despite a dynamic operating environment. The quarterly as well as half-year performance reached an all-time high on the revenue and profitability front."

The company expects strong demand in the second half, driven by GST reforms, strengthening urban demand, and continued growth in rural areas.

Patanjali Foods Limited continues to focus on expanding its product portfolio, strengthening its brand presence, and improving operational efficiencies to maintain its growth momentum in the coming quarters.

Patanjali Foods , a leading Indian FMCG company, has reported a significant increase in its financial performance for the second quarter of the fiscal year. The company's net profit surged by 68% to ₹520 crore, up from ₹310 crore in the same period last year. This robust growth in profitability comes alongside a 20% increase in revenue, which rose to ₹9,799 crore from ₹8,154 crore year-over-year.

Financial Highlights

Revenue Growth and Market Performance

The company's revenue growth of 20% year-over-year demonstrates its strong market position and effective sales strategies. This increase in revenue can be attributed to a combination of factors, including expanded product offerings, improved distribution networks, and possibly favorable market conditions.

Profitability and Operational Efficiency

Patanjali Foods reported a significant improvement in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which increased to ₹550 crore from ₹460 crore in the same period last year. This represents a growth of approximately 19.57% year-over-year. The company's EBITDA margin slightly declined to 5.61% compared to 5.64% in the previous year's corresponding quarter.

Earnings Per Share (EPS)

The company's Earnings Per Share (EPS) for the quarter stood at ₹14.30, which represents a 33.64% increase from the ₹10.70 reported in the same quarter of the previous year. This improvement in EPS aligns with the increase in net profit, reflecting the company's enhanced profitability on a per-share basis.

Looking Ahead

While Patanjali Foods has shown strong growth in revenue, net profit, and EBITDA, the slight decrease in EBITDA margin suggests that the company may face some challenges in maintaining operational efficiency. Investors and analysts will likely be watching closely to see how the company addresses these aspects in the coming quarters.

The company's ability to grow its revenue and EBITDA in a competitive FMCG market is a positive sign, but maintaining and improving profit margins will be crucial for sustained long-term growth. As Patanjali Foods continues to expand its product portfolio and market reach, balancing growth with operational efficiency will be key to its future success.

Patanjali Foods' strong performance in Q2 demonstrates its resilience and ability to capture market opportunities. The company's focus on improving operational efficiencies while maintaining its growth trajectory will be important for consistent bottom-line improvements in future quarters.