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Eagle’s Eye View: Patanjali Foods Limited for Q1 FY25:

Lesson 73/223 | Study Time: 5 Min

Course: Top Quality Companies

### Company Overview

Patanjali Foods Limited is a leading FMCG player in India, incorporated in 1986. The company operates in the segments of Edible Oils, Food & FMCG, and Wind Power Generation with a portfolio of brands like Patanjali, Ruchi Gold, Mahakosh, and Nutrela.

### Sales and Profit Growth

#### Revenue

- Q1 FY25: ₹7,173.06 crore

- Q1 FY24: ₹7,767.10 crore

Degrowth of (-7.7%)

#### Profit

- EBITDA for Q1 FY25: ₹435.08 crore (up from ₹211.99 crore YoY)

- EBITDA Margin: 6.07% (up from 5.08% QoQ)

- PAT for Q1 FY25: ₹262.90 crore (threefold increase YoY)

### Profit Margins

- EBITDA Margin: 6.07%

- PAT Margin: Significantly improved, reflecting threefold increase in PAT YoY.

### Segmental Growth

#### Edible Oils

- Revenue: ₹5,330.33 crore (down from ₹5,890.73 crore in Q1 FY24)

- EBITDA: ₹231.63 crore (recovered from a loss of ₹99.61 crore in Q1 FY24)

- Volumes: 5.74 lac MT

#### Food & FMCG

- Revenue: ₹1,953.55 crore (flat YoY)

- EBITDA: ₹184.05 crore (down from ₹360.77 crore in Q1 FY24)

#### Wind Turbine Power Generation

- Revenue: ₹14.33 crore

- Contribution to total energy requirements: ~20%

### Important Financial Ratios

- EBITDA Margin: 6.07%

- PAT Margin: Significant YoY improvement

- Earnings per Share (EPS): ₹7.26

### Historical Performance

- The company has shown substantial growth in EBITDA and PAT margins YoY.

- Edible oils segment saw a recovery in EBITDA due to stable prices and risk mitigation strategies.

### Industry Overview

Patanjali Foods Limited operates in the FMCG industry, focusing on edible oils, food products, and renewable energy. The company has faced challenges in the edible oils segment due to price volatility but has implemented strategies to stabilize performance.

### Peer Group Comparison

- Major peers include companies like Adani Wilmar, Marico, and Dabur, which also operate in similar segments of edible oils and FMCG products.

### Future Outlook

- The acquisition of Patanjali Ayurved Limited's Home and Personal Care business is expected to enhance the company's FMCG portfolio and contribute to revenue and EBITDA growth.

- Continued focus on expanding the biscuits division, Nutrela TVP, and premium product ranges.

- Emphasis on e-commerce and quick commerce channels for growth.

### Conclusion

Patanjali Foods Limited has demonstrated strong growth in profitability and has implemented strategies to stabilize its performance amidst market volatility. The acquisition of the HPC business is a strategic move to strengthen its FMCG portfolio and drive future growth. The company's efforts in expanding its product range and focusing on new-age channels like e-commerce are expected to further enhance its market position. Yet today as the major business comes from edible oil the investors should be prepared for high volatile profits where there is government interference also.

Disclosure:

Document was prepared for education purposes & should not be treated as a recommendation.

Full report would be provided soon:

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Piyush Patel

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