Stockrabit · Analysts
Questions across 3 calls

Sanjeev Asthana

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Patanjali Foods Limited

Patanjali Foods Limited CC-Nov25.pdf · 2025-10-31
Sure. I think it's a great question. No, there are two sides. One is , the question is a very good one. Look, we have always maintained that Patanjali stands for certain values, which is around natural, which is around healthy, organic, towards wellness, Ayurveda, and everything that Indian stands for. We have two macro trends, which are supporting us and then I will come to the specifics of what Patanjali, why we believe that not only will we sustain ourselves, but we will be able to grow and look beyond. So, one is that this entire campaign, as you are seeing form the Prime Minister of Atmanirbharta, of Swadeshi, and there is a big momentum that is gradually building up that we are witnessing is being very supportive of the overall the platform that Patanjali has. So, if there was one company which could lay a clay to say that this is as an Indian company , as the entire sort of policy driven initiative, we are right up there. The second is the right-to-win to all the five elements that I spoke about, health and organic and Ayurveda, and wellness etc., again, Patanjali stands pretty much on top of that chain in terms of the right-to-win is pretty much there. Specifically what we have been doing is that , A, in terms of the time to market in terms of delivering on product innovation, the research and development that we have, the growth opportunity that we see in the spaces that we operate in is humongous one. Yes, there is a competition. Yes, we have seen that certain players, both the startup mode as well as the organized players they have been very competitively pushing it. But our belief is that two stated intents that we have declared , one is between 8% and 10% growth in the food business that we intend to not only maintain but consolidate and grow. And second is about 15% growth rate in the HPC businesses . Because the availability of the tailwinds for us, the headroom for growth is enormous in front of Pat anjali. So, we feel not only pretty confident but we are also quite upbeat that we should be able to maintain the same trajectory as we go forward. And we continue to innovate, we continue to nimbleness of bringing the product to the market, which typically the startups tend to do better compared to larger companies. But we have proven through our backend, through research, through the supply chain, through the distribution capacity that we can compete effectively, we can drive that growth and we feel pretty confident about it. So, I hope I have answered your question in terms of what you are seeking.
Thank you.
Patanjali Foods Limited CC-Dec24.pdf · 2025-02-11
So Dhiraj, that's a great question. There's a certain degree of volume compression which has happened across the board. And so for example, that in palm oil, we had a volume compression of close to about -- between quarter 2 and quarter 3, I'm talking of this year, we had about 40,000 tons of reduction. In soybean, it was very marginal. It was just about 5,000 tons. In sunflower, it was about 7,000 tons. So broadly, two trends have defined the compression in the volumes in Edible Oils side, which was more than made up by the price rise which happened, which occurred both in the international markets and as well as the price increase that we took domestically, partially on account of the duty increase and partially on account of the consumer requirements. So broadly, the sudden increase in the international prices prompted consumers to cut down on certain consumption that was clearly witnessed. The second big trigger which drove the change was that, as I mentioned in my call, in the presentation is the palm oil prices for a change went significantly higher than Soybean and Sunflower oil prices. And palm being the biggest driver of the volume, that change -- that the industry in terms of the HoReCa segment, the institutional segment, et cetera, they started cutting down on the palm oil consumption, which was the biggest driver and which is where we witnessed the largest change, which occurred. But broadly, this trend should tend to stabilize as we see the -- going forward in this quarter. So already, the volumes are tending to pick up. But broadly, overall, I must say that the oil consumption has slightly flattened in last two months in a very distinct way. And certainly, going forward, we are seeing a muted volume growth overall. So -- and this is also witnessed incidentally, not just in our volumes, but across the board. Even the country's imports of palm oil have gone down s ubstantially. So broadly, this is reflective of the supply -side challenges and the price spread, which has suddenly occurred between palm and soy, this preference has started falling on both on soy a and sun. And that's why this change has occurred.
Yes. So absolute volume for the quarter, we have is 5.8 lakh tons is what we did. Last quarter, it was 6.07 lakh tons. So there's about a drop of 27,000 tons.
Patanjali Foods Limited CC-Mar24.pdf · 2024-05-15
Yes. So no, very good question. So two parts. One is that our biscuit performance is actually generally an outlier overall because the volume increase and the revenue increase that we are seeing is both, of course, adding to the bottom line significantly. So for example, our margin from 9.3% last year, EBITDA margins have moved to 14%. And as a threshold of the distribution that we have seen. So we're clearly seeing that the distribution base that we continue to expand, it is giving us a huge leg up in terms of building up the sales. And we continue to target aggressively. And while the specific numbers annually, it is difficult to give. But broadly, we expect that we will continue to maintain between 16% to 20% growth on the biscuit front on the revenue side. There, we are trying to now go in for a better superior mix now. So Doodh has already crossed INR1,000 crores. The other biscuits are about INR600 crores. We are expecting that Doodh will continue to maintain its trajectory. And the premium end of the biscuits will continue to grow. So we are hoping that our bottom line EBITDA margin of 14%, we continue to improve because to be on a certain point , EBITDA continues to kick up way better with the cost structures being same. Coming back to the industry. I think largely the growth has been fairly subdued for most companies. And you said the industry average was about 8%. But broadly, I'm expecting that the recovery should happen because the rural demand continues to show some p ositivity. And so that growth is there. And second is on the urban side, the premium end of the market, basically in digestive and cookies and cream crackers and others, there is an uptick. So I would be positively sort of oriented toward the biscuits as a range, for most players. On the part of the commodity prices, I think oil prices have been extremely supportive through the year barring this last quarter when we saw an uptick, but broadly it is supportive. The wheat prices, the crop has been good. The government, both for the pu rposes of upcoming ongoing elections that we had and to control consumer inflation, has taken a very strong grip over the market in terms of controlling in multiple different ways on the stock control orders, on the -- private trade is not allowed to sort of speculate much, making sure that the actual users using the buffer stocks to sort of continue to maintain in the marketplace. So I'm expecting a reasonably benign sort of price outlook for wheat prices this year. And likewise, for sugar as well, both the global prices and the domestic prices are being soft. So overall wheat, the biscuits industry with a 3 prime ingredients, the o il, the flour and the sugar being supportive. So overall, I think this year should be positive for most biscuit companies. And certainly, as I mentioned already, that we are targeting aggressive growth plans. We continue to expand distribution. And virtually every month, we're adding between 12,000 to 15,000 retail outlets to our expansion. So we are pretty much on course to have an expanded reach on the biscuits business. Abneesh Roy Sure. My second question is on the demand side. So we are seeing in Q4, the commentary of FMCG company is turning positive. And we are seeing also in a few categories like oral care, good volume growth coming back, especially in South India. So wanted to u nderstand your sense on the demand trends in FY '25, clearly rural was seen behind. But given you are also across many categories, how you see rural versus urban? And is South India leading the recovery currently?
So clearly, two trends are quite visible that one is that rural from this Q4 onwards looks reasonably stable. I think after a difficult sort of a couple of quarters when the demand was subdued, I think Q4 onwards, it looks very positive overall. So in gene ral, we are bullish. And if you see between rural and urban, the growth pattern in rural is sort of the uptick is way better. In terms of the regional wise uptake, we are not in per se witnessing anything in particular that Southern India are doing better or otherwise. I think the broad-based recovery that we're seeing in the markets and which is reflection of the stronger sort of the rural incomes on account of the good crops, the better MSP administration that is happening. So overall the trend is good. I mean South is , of course, has always sort of a little ahead. When the demand upsurge happens typically, South tends to demonstrate better uptick sooner. So that is there. But I don't see any major differences per se between the respective regions. Abneesh Roy Sir, and last quick question. So recently, last 1 or 2 months, the group overall has been there in terms of news flow, Supreme Court and may be one of the Northern states, et cetera. So how does this impact the brand given consumer is also reading all those news flow on a daily basis? And second related question is ESOP policy is there. So if you could comment how that's helping? How has been the attrition in terms of the middle level management and senior level management? In terms of professionalization, how is the journey?