Patanjali Ayurved Q2 Results: Revenue Dips 21%, Margin Expands On Lower Expenses
Standalone revenue for the Baba Ramdev-backed company fell to Rs 1,503.8 crore in the second quarter.
Patanjali Ayurved Ltd.'s second quarter revenue dropped due to lower sales of consumer goods while lower expenses aided margin.
Standalone revenue for the Baba Ramdev-backed company fell 21% over the previous year to Rs 1,503.8 crore in the July-September period of fiscal 2024, according to its exchange filing. Sequentially, its revenue declined 23%.
Net profit for the company stood at Rs 2,529.3 crore as against Rs 95.23 crore a year ago. These figures aren't comparable as the company divested the food retail business to one of its subsidiaries—Patanjali Foods Ltd.—in a slump sale in July last year, and due to profit on sale of investments.
Patanjali Ayurved Q2 FY24 Highlights (YoY)
Operating profit declined 18% to Rs 138.6 crore.
Margin expanded to 9.2% as against 8.9% on lower expenses.
Total expenses declined 21% to Rs 1,452 crore.
Sales of FMCG products fell 25.5% over the previous year to Rs 1,158.3 crore in the quarter ended September, while that of its Ayurvedic products remained unchanged at Rs 276.53 crore, according to the company's disclosure.
Most consumer goods makers have reported muted demand in the second quarter, which was marred by a shift in festive demand to the third quarter, sustained rural slowdown and a resurgence of local players. Gross margin expanded year-on-year for most players, given deflation in key raw materials. With expanding margin, ad spends got ramped up significantly.
Patanjali Ayurved manufactures household and skin care products, while its entire food portfolio including ghee, edible oil, rice, flour, pulses, chyawanprash and others are sold by Patanjali Foods.
After the transfer of its food business, the management of Patanjali Ayurved told BQ Prime that it has mapped out aggressive export plans to fuel growth. Revenue from its exports business, however, fell 19.3% over the previous year to Rs 12.08 crore during the quarter, the company said. On a quarter-on-quarter basis, however, its exports business rose 21%.
In September last year, Baba Ramdev had announced that the Patanjali Group plans to list Patanjali Ayurved, Patanjali Wellness, Patanjali Lifestyle, and Patanjali Medicine in the next five years. At present, Patanjali Foods is the only group company that’s listed on the stock market.
