Winning Bizness Desk

Baba Ramdev’s FMCG company, Patanjali Foods, has recorded its highest-ever profits. The company’s net profit surged by 71.29% to ₹370.93 crore in the third quarter of the current fiscal year, ending December 2024. Patanjali Foods shared this information with the stock market on Monday.

In comparison, the company had reported a net profit of ₹216.54 crore in the same quarter of the previous fiscal year. During the October-December quarter of the current financial year, the company’s total revenue rose to ₹9,103.13 crore, up from ₹7,910.70 crore in the same period last year. However, total expenses also increased to ₹8,652.53 crore from ₹7,651.51 crore in the previous year’s corresponding quarter.

Edible Oil Segment Generates Maximum Revenue

According to Patanjali Foods Limited, its biggest revenue source is the edible oil segment, which saw a massive surge in earnings. Out of the total revenue for the December quarter, ₹6,717 crore came from edible oils alone. In contrast, the edible oil segment had generated ₹5,483 crore in the same quarter last year, marking a 23% increase in revenue from this category.

Increased Marketing Expenditure

Patanjali Foods has also increased its marketing expenditure significantly. The company has revamped its marketing strategy to strengthen customer trust and has heavily invested in advertising and sales promotion.

During the December quarter, Patanjali allocated 2.5% of its total expenses towards advertisements and sales promotions, which is the highest expenditure on marketing in the past ten quarters. The company has been actively using celebrity endorsements, with Bollywood stars like Shilpa Shetty and Shahid Kapoor, cricket legend MS Dhoni, and Bhojpuri actor Khesari Lal promoting the brand.

Strong Stock Performance and Investor Returns

Patanjali Foods' record profits have not only benefited the company but also rewarded its investors with significant gains.

• Over the past year, the company has delivered a 19% return to its investors.
• In the last five years, Patanjali Foods’ stock has provided a massive 78% return.

Currently, Patanjali Foods’ shares are trading at ₹1,854 per share, reflecting its strong financial performance and investor confidence. With robust growth in its edible oil segment, increased marketing efforts, and strong stock performance, Patanjali Foods continues to solidify its position as a leading player in the FMCG sector.