Patanjali Foods, the renowned Indian FMCG company, has recently released its Q3 update, showcasing robust growth driven by stable edible oil prices. The company’s performance in the edible oil segment has been particularly noteworthy, with both sequential and year-on-year growth in volumes. This positive trend can be attributed to the steady prices of edible oils in India during the December quarter. The absence of price volatility, coupled with robust domestic demand and minimal divergence between futures and physical market prices, has created a favourable environment for Patanjali Foods to thrive.
According to the Q3 update, branded sales continued to contribute 75% of the total edible oil sales volume. This highlights the strong brand presence and customer loyalty enjoyed by Patanjali Foods in the edible oil market. The revenue of the food and FMCG segment, which accounts for 32% of Patanjali Foods’ total revenue, remained stable during the December quarter. Additionally, the biscuits portfolio witnessed a growth of over 20% year-on-year, further bolstering the company’s overall performance.
Patanjali Foods’ Q3 results reflect a positive financial performance. In the quarter ending September 2023, the company reported net sales of Rs 7,821.89 crore, representing a year-on-year growth of 8.13%. The quarterly net profit for the same period reached Rs 254.54 crore, a significant increase from Rs 112.29 crore in the previous year.
RTM Watch’s Take
Patanjali Foods’ strong Q3 performance, driven by stable edible oil prices, showcases the company’s ability to capitalise on favourable market conditions. The incremental growth in the edible oil segment, along with the stable revenue in the food and FMCG segment, indicates the company’s resilience and adaptability in meeting consumer demands. As Patanjali Foods continues to expand its product portfolio and strengthen its brand presence, it is well-positioned to leverage the growing demand for healthy and natural food products. The company’s focus on maintaining stable prices and meeting customer expectations has contributed to its sustained growth in the FMCG sector.
