The FMCG company said that 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. International food, energy and other commodity prices have eased moderately in recent times. India, per se, has revived fast supported by good progress of rabi sowing, sustained urban demand, improving rural demand, a pick-up in manufacturing, rebound in services and robust credit expansion.

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 continued to contract. Festive and marriage season revived the demand for the food products during this quarter.

For the quarter ended 31 December 2022, the company delivered an EBITDA of Rs 405.15 cr, registering an increase of 97.49% QoQ. EBITDA margin for the current quarter stood at 5.11% up by 270 bps as compared to 2.41% in Q2FY23.

The food products and others business segment in Q3 FY23 achieved sales of Rs 1,570.08 crore contributing 19.81% of revenue from operations of the company.

The edible oils segment registered sales of Rs 6,066.51 crore contributing 76.53% of revenue from operations of the company.

The branded sales of the company including the institutional segment achieved sales of Rs 6,447.81 crore, which contributes 81.91% of the total sale of products of the company for the period.

The company firmly believes that its foods segment with large product portfolio comprising of robust brands across categories such as ghee, chyawanprash, honey, juices, soya chunks etc shall continue to grow at a higher pace keeping in mind the growing distribution network and wider availability across retail shelf.

While the near term shows positive growth aspects, Pantanjali Foods said that it remains cautiously optimistic on the medium term given the recent softening of input prices and inflationary trends.

Patanjali Foods (formerly known as Ruchi Soya Industries), is a diversified Indian conglomerate with strong focus on Fast Moving Consumer Goods (FMCG) and Fast Moving Health Goods (FMHG) segments.

The scrip hit a lower circuit of 5% at Rs 1102.10 on the BSE.