Patanjali Foods shares: In early morning trade today, the Supreme Court issued a contempt notice to Patanjali Ayurved, owned by Ramdev, and its managing director, Acharya Balakrishna, for breaching their commitment not to rephrase their statements. to make false claims when promoting their medications. As a result, shares of the FMCG company Patanjali Foods fell by 4.13% to ₹1,555 apiece.
Furthermore, the apex court restricted Patanjali, preventing it from promoting products purported to cure diseases like heart ailments and asthma. This decision was prompted by evidence presented in court by the Indian Medical Association (IMA), which included a Patanjali advertisement in The Hindu newspaper and a press conference where the company asserted complete cures for diabetes and asthma through yoga.
The court concluded that Patanjali had breached the earlier court order, which explicitly prohibited the company from disseminating misleading advertisements and making deceptive claims.
On the same day, Patanjali Foods responded to the situation with a regulatory filing, clarifying, “The remarks made by the Supreme Court of India do not pertain to Patanjali Foods Limited, which operates independently as a listed entity, focusing solely on the production of edible oil and FMCG food products.”
In the third quarter (Q3FY24) of the fiscal year 2023–24, Patanjali disclosed revenue from operations amounting to ₹7,910.7 crore, representing a slight increase of 1.1% compared to the preceding quarter. The total income, inclusive of other sources, stood at ₹7,957.3 crore.
The company attained an EBITDA of ₹390.6 crore, with the EBITDA margin registering at 4.9%, a decrease from 5.3% in the previous quarter (Q2FY24) and 5.1% in the corresponding quarter of the previous year.
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The quarterly profit after tax (PAT) amounted to ₹216.5 crore, marking a decline from ₹254.5 crore reported in the third quarter of the previous fiscal year.
Furthermore, the company disclosed export sales worth ₹62.1 crore for the quarter, contributing to a total revenue from exports of ₹266.2 crore for the nine months ending in the third quarter of the fiscal year 2023–24.
