Patanjali Foods posts second-quarter profit rise on strong cooking oil demand

Indian consumer goods maker Patanjali Foods reported a 21% rise in second-quarter profit on Thursday, aided by strong demand at its mainstay cooking oils business.

The Ruchi Gold oil maker's profit rose to Rs 309 crore for the three months ended Sept. 30, from Rs 255 crore a year earlier.

India's edible oil demand has been buoyant as cooking oils remain affordable despite an import duty hike, analysts said.

Consumer goods makers have also been witnessing a pickup in demand in India's rural areas, with sales there outperforming urban areas.

Revenue from Patanjali's edible oils segment, which makes up nearly three-fourths of its total revenue, rose about 10% during the quarter.

That led to a 4% growth in overall revenue to Rs 8,154 crore.

However, revenue from the food and fast moving consumer goods segment fell 7%, in line with sluggish demand at the industry level, the company said in a statement.

Margins on earnings before interest, tax, depreciation, and amortization expanded to 6.06% from 5.34% a year earlier.

Peer Adani Wilmar also reported higher second quarter profit on steady edible oils demand.