India's Patanjali Foods posts second-quarter profit rise on strong cooking oil demand

Patanjali Foods

24/10/2024 15:23

Oct 24 (Reuters) - Indian consumer goods maker Patanjali
Foods  PAFO.NS  reported a 21% rise in second-quarter profit on
Thursday, aided by strong demand at its mainstay cooking oils
business.
    The Ruchi Gold oil maker's profit rose to 3.09 billion
rupees (about $37 million) for the three months ended Sept. 30,
from 2.55 billion rupees a year earlier.
    India's edible oil demand has been buoyant as cooking oils
remain affordable despite an import duty hike, analysts said.
    Consumer goods makers have also been witnessing a pickup in
demand in India's rural areas, with sales there outperforming
urban areas. 
    Revenue from Patanjali's edible oils segment, which makes up
nearly three-fourths of its total revenue, rose about 10% during
the quarter. 
    That led to a 4% growth in overall revenue to 81.54 billion
rupees. 
    However, revenue from the food and fast moving consumer
goods segment fell 7%, in line with sluggish demand at the
industry level, the company said in a statement. 
    Margins on earnings before interest, tax, depreciation, and
amortization expanded to 6.06% from 5.34% a year earlier.
    Peer Adani Wilmar  ADAW.NS  also reported higher second
quarter profit on steady edible oils demand. 

($1 = 84.0520 Indian rupees)

 (Reporting by Ashna Teresa Britto, Additional Reporting by
Manvi Pant; Editing by Mrigank Dhaniwala)
 ((AshnaTeresa.Britto@thomsonreuters.com;))