At 11:54 AM; Patanjali Foods traded 4 per cent higher at Rs 943.50, as compared to 0.66 per cent decline in the S&P BSE Sensex. The average trading volumes on the counter jumped 1.4 times today. A combined 363,000 equity shares had changed hands on the NSE and BSE. Currently, Patanjali Foods traded under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.
Patanjali Foods has underperformed the market in recent past. In past one week, the stock was down 11 per cent, as compared to 1.6 per cent rise in the S&P BSE Sensex. In one month, it declined 20 per cent, as against nearly 1 per cent gain in the benchmark index. Further, in past three months, it slipped 31 per cent, as compared to 1 per cent decline in the Sensex. The stock had hit a 52-week high of Rs 1,495 on September 22, 2022.
The recent underperformance is partly attributed to government's decision to discontinue import of crude soybean oil under tariff rate quota (TRQ) from April 1 this year.
In October-December quarter (Q3FY23), Patanjali Foods reported 139.73 per cent sequential growth in profit after tax (PAT) at Rs 269.18 crore, on back of healthy operational performance. Earnings before interest, depreciation, tax and amortization (EBIDTA) grew by 97.5 per cent quarter-on-quarter (QoQ) to Rs 406 crore. EBITDA margin improved 270 bps to 5.11 per cent from 2.41 per cent in Q2FY23. Revenues from operations, however, declined 6.9 per cent QoQ at Rs 7,926 crore. On year-on-year basis, revenue and PAT grew 26.2 per cent and 15 per cent, respectively.
After sharp volatilities and downtrend witnessed in the previous quarters, there has been some stability and revival observed in Q3FY23. The macro challenges faced earlier in terms of geo-political standoff, soaring inflation, supply constraints, high interest rates and demand concerns have waned a bit, the company said.
The prices of edible oils, the biggest portion of the company’s revenue, stabilized and recovered from the sharp decline witnessed in Q2. Urban demand for FMCG products has been steady while rural demand continues to contract. Festive and marriage season revived the demand for the food products during this quarter, Patanjali Foods said.
On outlook, the company maintains its aspirations of delivering sustainable and profitable growth with significant contribution from the foods vertical. While the near term shows positive growth aspects, the management remains cautiously optimistic on the medium term given the recent softening of input prices and inflationary trends.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app