Offering a preliminary update of its operating performance for Q2 FY24, Patanjali Foods said that the edible oil segment faced an ongoing pricing pressure during Q2 mainly due to excessive imports that led to elevated inventory levels, impacting both revenue and margins. The price trend observed in Q2 remained consistent with that of Q1, displaying divergent price fluctuations between the physical and futures markets.

The company managed to registered an uptick in edible oil sales volume, with branded sales accounting for over 75% of the total sales value in this segment.

In the oil palm plantation business, the company made significant strides during Q2, including the establishment of eight nurseries across five states and the development of over 4,500 hectares of palm plantations pan India. The company conducted a mega oil palm plantation drive in seven states, distributing approximately 350,000 seedlings to farmers and covering an extensive area exceeding 2,400 hectares.

In the food & FMCG segment, the company achieved double-digit sequential growth in Q2 FY24 and a year-on-year growth of more than 30% in H1 FY24. This segment's contribution to the company's Q2 FY24 revenue further moved by 100 bps from Q1 FY24.

The biscuits division showed high teens YoY growth in Q2 FY24 and high twenties YoY growth in H1 FY24. The company achieved the highest-ever quarterly sales of textures soya products (TSP) under the Nutrela Brand.

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 FMCG compnay net profit decreased 63.6% to Rs 87.75 crore in Q1 FY24 as compared with Rs 241.26 crore in Q1 FY23. Total income increased 7.7% to Rs 7767.10 crore during the quarter as compared with Rs 7210.97 crore recorded in corresponding quarter last year.

The scrip fell 0.71% to Rs and currently traded at Rs 1321.00 on the BSE.