Patanjali profit drops amid legal troubles

BNE News Desk

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New Delhi: Baba Ramdev-led Patanjali Foods announced its January-March quarter results for fiscal 2023-24 (Q4FY24) on Tuesday, May 14, reporting a drop of 22 percent in standalone net profit at Rs 206.32 crore, compared to  Rs 263.71 crore in the corresponding period last year.

Revenue from operations in the same quarter rose 4 percent year-on-year to Rs 8,222 crore. The same stood at Rs 7,873 crore posted in the last year period. 

Patanjali Foods in a regulatory filing to the stock exchanges said that the board of directors in their meeting held on March 13 declared an interim dividend of  Rs 6 per equity share of  Rs 2 each. The record date for payment was March 21 and the same was paid on March 30.

As per reports, higher prices of everyday items like milk and wheat flour have slowed demand for consumer goods in rural India, causing people to cut back their spending on other necessities as well as discretionary purchases

In the full year, the company achieved a total revenue of Rs 31,721 crore from its operations. Within this, sales from the Food and FMCG segment amounted to Rs 9,643 crore 

In Q4FY24, advertising spending accounted for 0.34 percent of the total revenue. Noteworthy brand-building initiatives include partnerships with the Pro Kabaddi League 2024 and securing the official title sponsorship of Fever FM, the radio partner of the KKR IPL team.

The development comes amid Patanjali's ongoing legal troubles over 'misleading advertisements.' The Supreme Court on Tuesday told Patanjali Ayurved to file an affidavit within three weeks on the steps being taken to recall advertisements of Patanjali products of which licences have been suspended and for recalling medicines that have been sent for stocking.

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BNE News Desk