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FMCG Giant Faces 4% Stock Downturn Amidst Decline in Profits

Published 11-02-2024, 07:39 pm
© Reuters.

By Aayush Khanna

Shares of Patanjali Foods (NS:PAFO) Limited, backed by yoga guru Ramdev, faced a 3.6% dip on 9 February 2024 following the company's report of a 19.6% year-on-year decline in net profit, amounting to INR 216.5 crore for the December 2023 quarter. The company's revenue remained relatively stagnant, with a marginal 0.2% decrease to INR 7,910.7 crore compared to the same period last year.

By Friday’s closing, the stock fell to INR 1,603.8, marking a 3.6% decrease from the previous close on the NSE. Despite this, the stock had witnessed a notable 15% gain over the past three years.

Patanjali Foods Limited saw its EBITDA drop by 6.5% to INR 344.1 crore, with the EBITDA margin shrinking from 4.6% to 4.4% year-on-year. EBITDA, an acronym for earnings before interest, tax, depreciation, and amortization, serves as a measure of operational profitability.

The company's food and FMCG segment recorded its highest quarterly revenue of INR 2,498.62 crore, reflecting a substantial growth of 64.05% compared to the previous year's INR 1,523.11 crore. Meanwhile, the edible oil segment achieved sales of INR 5,482.64 crore, indicating a modest sequential growth in revenue of 1.13%.


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