Fast flight of profits and access to the common man’s kitchen, FMCG sector giant Patanjali Foods has made a historic and very good performance in the December quarter. According to the recently released results, the total income of the company has crossed ten thousand crore rupees with a strong increase of sixteen and a half percent. This is the highest level of any quarter. There has also been a huge jump of sixty percent in profits.
In the market of daily consumer goods, Patanjali has now become a very important part of our daily life. The contribution of FMCG business to the company’s total revenue has increased to more than thirty percent, which shows a major positive change in the business model. The revenue of Home and Personal Care business has also been recorded at Rs 628 crore and the margin is around twenty-five percent.
Target of market cap of Rs 1 lakh crore
While discussing the future strategies, Patanjali founder Swami Ramdev said that the current market cap of the company is around Rs 57 thousand crores. A huge target has been set to take it to Rs 1 lakh crore in the next three years. Apart from this, the company also wants to take its total turnover to Rs 1 lakh crore in the same stipulated time frame.
The main objective of the company is to make Patanjali the world’s largest indigenous FMCG company by strengthening its hold in the indigenous market. Talking about profit, there is a concrete plan to increase the EBITDA to Rs 5000 crore in the next three years. To improve the supply of edible oil, palm plantation has been increased from sixty thousand hectares to 1.10 lakh hectares.
Tough competition for foreign companies
Foreign brands are now facing tough competition in daily use products. Swami Ramdev clarified that in the dental care segment, Patanjali has overtaken Colgate in more than half of India. He claims that in the next 5 years Patanjali will undisputedly become the number one brand of the country.
In the month of September, the government had reduced GST on essential products like dental and hair care from eighteen percent to only five percent. Patanjali has directly benefited from this huge tax relief, making it the best performer in the last thirty years. Even in the home and personal care segment, the company’s profit margin remains at an excellent level.
Investors got tremendous returns
Investors’ confidence in the stock market and excellent returns. Talking about the stock market, Patanjali Foods has become rich by giving tremendous returns to the investors in the long term. Today this share closed at Rs 531. Even in the last one month, the stock has seen a rise of 5.93%, while if seen from a long perspective of ten years, it has given a huge profit of 6750 percent.