Refile: India's Patanjali Foods Q2 profit doubles as lower costs offset revenue drop

Patanjali Foods

08/11/2023 15:01

(Changes day to Wednesday in paragraph 1)
       BENGALURU, Nov 8 (Reuters) - India's Patanjali Foods
 PAFO.NS  on Wednesday reported a second-quarter profit that
more than doubled as a slump in expenses outpaced falling
revenue, dragged by lower edible oil prices.
    The Ruchi Gold oil maker's profit rose to 2.55 billion
Indian rupees ($30.63 million) in the quarter ended Sept. 30,
from 1.12 billion rupees a year earlier.
    A more than 23% drop in raw material costs helped
Patanjali's total expenses to fall more than 10% to 75.11
billion rupees. 
    Meanwhile, the slide in spends helped offset a 8% decline in
Patanjali's revenue from operations to 78.22 billion rupees.
Revenue from edible oils, which accounted for 69% of its topline
in the quarter, dropped over 13%.
    India's record edible oil imports and weaker global oil
prices have weighed on edible oil companies. Last week,
Fortune-maker Adani Wilmar posted a loss for the quarter.
    Revenue rose about 5.5% in the company's food business,
which makes Patanjali-branded biscuits and the "Nutrela" line of
products from wheat flour to honey.
    Patanjali Foods CEO Sanjeev Asthana said in a statement he
is optimistic that the festival season and increase in consumer
spends will drive growth in the next quarter.
    Consumer companies grappled with weak rural demand in the
first two months of the July-September quarter due to peaking
inflation and delayed monsoons.
    However, easing food prices and rains picking up in
September helped them claw back, a NielsenIQ report showed.
    Shares of Patanjali Foods closed up 1.15% ahead of the
results, leading to an overall year-to-date increase of 22%.

($1 = 83.2437 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by
Shailesh Kuber)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))