Patanjali Ayurved Reports 23% Revenue Growth in FY24, Boosted by Other Income

Patanjali Ayurved, led by Baba Ramdev, reported a 23.15 per cent increase in total income for the fiscal year 2023-24, reaching Rs 9,335.32 crore. This growth was driven largely by a significant rise in other income, which included proceeds from the offer-for-sale (OFS) of Patanjali Foods (formerly Ruchi Soya) and income from other group entities, according to a filing with the Registrar of Companies (RoC).

While the company's revenue from operations, primarily derived from net sales, saw a decline of 14.25 per cent to Rs 6,460.03 crore, the boost in other income helped offset this dip. The drop in revenue was attributed to Patanjali Ayurved’s transfer of its food business to Patanjali Foods in July 2022. The food business included products like biscuits, ghee, cereals, and nutraceuticals.

In a positive financial outcome, Patanjali Ayurved saw its profit surge five-fold, jumping to Rs 2,901.10 crore in FY24, up from Rs 578.44 crore in the previous year.

The company’s advertising and promotional expenses also rose by 9.28 per cent to Rs 422.33 crore in FY24, reflecting increased marketing efforts.

Earlier this year, Patanjali Ayurved transferred its home and personal care business to Patanjali Foods for Rs 1,100 crore. This restructuring also included the launch of a two-day OFS in July 2023, where the promoters of Patanjali Foods reduced their stake by 7 per cent to meet public shareholding requirements. The offering was oversubscribed more than two times.

Patanjali Foods, which acquired Ruchi Soya through an insolvency resolution process, posted a revenue of Rs 31,961.62 crore in FY24, slightly higher than the previous year's Rs 31,821.45 crore.

Patanjali Ayurved, primarily engaged in the ayurvedic and FMCG sectors, continues to operate across categories like hair care, skin care, dental care, home care, personal care, and dairy products, with a vast distribution network across India. The company has manufacturing facilities nationwide and also partners with contract manufacturers in Dehradun and Manesar.