India's Patanjali Foods Q1 profit rises as stable edible oil prices keep expenses low

Patanjali Foods

19/07/2024 15:17

BENGALURU/CHENNAI, July 19 (Reuters) - India's Patanjali
Foods  PAFO.NS  reported a threefold jump in quarterly profit on
Friday, as the consumer goods maker benefited from stable edible
oil prices and higher demand for its packaged foods.
    Branded cooking oil sellers including Saffola parent Marico
 MRCO.NS , Fortune brand owner Adani Wilmar  ADAW.NS  and
Patanjali typically book higher profits when edible oil prices
are stable, according to industry executives.
    Patanjali's profit after tax rose to 2.63 billion Indian
rupees ($31.44 million) for the quarter ended June 30 from 877.5
million rupees a year earlier, according to a regulatory filing.
    The Ruchi Gold oil maker, which brings in nearly
three-fourth of its revenue from its edible oil business, said
the reduced volatility in the prices drove profit growth, with
expenses decreasing 11% in the first quarter.    
    Patanjali also said revenue from its foods and consumer
goods business increased marginally even as its edible oil
segment fell due to a heat waves-triggered drop in demand.
    Overall revenue dropped 7.6% to 71.73 billion rupees.
    Patanjali is the first major consumer goods maker to report
earnings. Larger peers Adani Wilmar and Marico expect an uptick
in quarterly sales, according to quarterly updates earlier this
month.

($1 = 83.6640 Indian rupees)

 (Reporting by Nandan Mandayam in Bengaluru and Praveen
Paramasivam in Chennai; Editing by Krishna Chandra Eluri)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))