(Reuters) – 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 3.09 billion rupees (about $37 million) for the three months ended Sept. 30, from 2.55 billion rupees 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 81.54 billion rupees.
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.
($1 = 84.0520 Indian rupees)
(Reporting by Ashna Teresa Britto, Additional Reporting by Manvi Pant; Editing by Mrigank Dhaniwala)
