Patanjali Foods, a well-known Indian consumer goods manufacturer, announced a significant 71% increase in third quarter profits, mainly based on strong demand for its cooking oil. The company reported profit of Rs 3.71 billion (approximately $42.4 million) for the quarter ending December 31, compared to Rs 2.17 billion in the same period last year.
In response to rising ingredient costs, oil manufacturers including Patanjali have raised prices, but consumer demand remains unshakable. In particular, revenue from the edible oil segment of Patanjali accounted for nearly 75% of total revenue, up 22.5% during the quarter. This growth contributed to an overall revenue increase of 15%, reaching Rs 910.3 crore.
However, not all segments worked well. The company’s food and fast-moving consumer goods (FMCG) division experienced an 18% decline in revenue, reflecting a decline in consumer demand in that category. Furthermore, Patanjali Foods faced a 13% increase in costs, mainly due to an increase in import taxes on import taxes on crude and refined cooking oils.
The positive performance of Patanjali Foods reflects the performance of large competitors in the industry, including Adani Wilmer, who recently reported doubling quarterly profits driven by similar demand for cooking oils. As the edible oil market continues to flourish, Patanjali Foods remains an important player in the Indian consumer goods landscape.
