Patanjali Foods Ltd Share Price – NSE  /  BSE

Edible Oil, Small Cap

Patanjali Foods announced its board's approval to acquire Patanjali Ayurved's non-food business for Rs 1,100 crore. The acquisition, structured as a going concern sale, will bring Patanjali Ayurved's established dental care, skin care, home care, and hair care products under the Patanjali Foods umbrella.

The acquisition includes assets like land, buildings, machinery, inventory, and infrastructure (including manpower and distribution networks) along with associated liabilities. Patanjali Ayurved's turnover for the fiscal year ending 31 March 2024, was approximately Rs 6,199 crore. The proposed acquisition is a related party transaction.

This strategic acquisition is expected to significantly boost Patanjali Foods' product portfolio with well-recognized brands, contributing to revenue and EBITDA growth.

Additionally, a separate 20-year licensing agreement has been established, with Patanjali Foods paying a 3% turnover-based fee on gross sales (minimum Rs 83 crore annually) to Patanjali Ayurved for continued brand use.

The consolidation of the Patanjali brand under Patanjali Foods is anticipated to create synergies in brand equity, product innovation, cost optimization, and operational efficiencies. This ultimately aims to solidify Patanjali's market share within the FMCG sector.

Following the board's approval, Patanjali Foods will now pursue final agreements and obtain necessary approvals to complete the acquisition.

Patanjali Foods shares fell 2.36% to settle at Rs 1659.60 on 2 July 2024.

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Revenue from operations fell 4.43% to Rs 8,221.66 crore in the fourth quarter of FY24 as against 7,872.92 crore posted in Q4 FY23.

During Q4, profit before tax was at Rs 299.72 crore, down 14.22% from Rs 349.39 crore recorded in the corresponding quarter last year.

EBITDA grew 19.4% YoY to Rs 497 crore while EBITDA margin stood at 9.61% during the quarter.

On a full year basis, the standalone net profit fell 13.68% to Rs 765.15 crore in FY 24 as against Rs 886.44 crore recorded in FY23. Revenue from operations rose marginally on YoY basis to Rs 31,721.35 crore in FY24.

In fourth quarter of FY24, the company achieved export revenue of Rs 57.33 crore.

The food & FMCG business segment achieved an ever highest quarterly revenue of Rs 2,704.61 crore in Q4 FY24, contributing to 32.57% of revenue from operations. The segment recorded an EBITDA of Rs 259.87 crore, up 1.37% YoY while EBITDA margin stood at 9.61 % in Q4 FY24 as against 10.85% in Q4 FY23.

Edible Oil segment sales rose 1.94% YoY to Rs 5,588.96 crore in Q4 FY24. Volumes increased 5% YoY to6.34 lac MT, on the back of the expanded distribution reach and superior offering to consumers.

In line with the quarterly trends, revenue from the Wind Turbine Power Generation segment during Q4 FY24 stood at Rs 10.62 crore, stated the company.

Patanjali Foods (formerly known as Ruchi Soya Industries) is one of India's top FMCG player in India. The company is present in Edible Oils, Food & FMCG and Wind Power Generation segments via a bouquet of brands like Patanjali, Ruchi Gold, Nutrela, etc.

The scrip advanced 3.45% to end at Rs 1,380.55 on the BSE.

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Net profit of Patanjali Foods declined 21.76% to Rs 206.32 crore in the quarter ended March 2024 as against Rs 263.71 crore during the previous quarter ended March 2023. Sales rose 4.43% to Rs 8221.66 crore in the quarter ended March 2024 as against Rs 7872.92 crore during the previous quarter ended March 2023.

For the full year,net profit declined 13.68% to Rs 765.15 crore in the year ended March 2024 as against Rs 886.44 crore during the previous year ended March 2023. Sales rose 0.62% to Rs 31721.35 crore in the year ended March 2024 as against Rs 31524.66 crore during the previous year ended March 2023.

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Patanjali Foods will hold a meeting of the Board of Directors of the Company on 14 May 2024.

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