Q1 2027 Patanjali Foods Ltd Earnings Call
Speaker #1: In school, please signal and operate her by pressing STAR, then zero on your touchstone phone. Please note that this conference is being recorded. I now end the conference over to Mr. Sanjeev Asthana, CEO, Patanjali Foods.
Speaker #1: Thank you, and over to you, sir.
Speaker #2: Thank you, and good morning to everyone joining us today. A warm welcome to all of you on Patanjali Foods Limited's call to discuss the financial performance for Q1, FY27.
Speaker #2: I'm accompanied by the company's CFO, Kumar Rajesh Ji, along with Mr. Preetu Jaa from Investor Relations, and our IR partners, Strategic Growth Advisors. The results collateral has been uploaded on the stock exchanges, as well as on company's website, for your reference.
Speaker #2: Let me now take you through a quick snapshot of our financial performance for the quarter. During the course of the call, we will be referring to the standalone financials.
Speaker #2: We continued to build on this momentum, delivering our 4th consecutive quarter of highest-ever quarterly revenues supported by healthy growth in profitability. Specifically, revenue from operations stood at $11,337 crores, growing 29% year on year.
Speaker #2: Operating EBITDA for the period was $543 crores, with a margin at 4.80%, while profit before tax stood at $453 crores, translating into PBT margin of 4%.
Speaker #2: Turning to the segmental performance now, our edible oil segment delivered quarterly revenue of $8,505 crores, marking the highest-ever quarterly revenue with growth at primarily by the mustard oil.
Speaker #2: Quarterly EBITDA margin came in at 5.23%. On the oil palm plantation front, the company generated highest-ever quarterly revenue of $740 crores in Q1, FY27.
Speaker #2: Revenues grew by 25% year on year, with growth as closely aligned with the government of India's National Mission on Edible Oil oil path. Which has strengthened farmer viability pricing and planting assistance to drive India toward self-reliance in edible oils.
Speaker #2: As of 30 June 2026, the cultivated area stood at 1,15,861 hectares, with nearly 37% of the area in the prime yielding phase of 7 to 25 years.
Speaker #2: Against total allocated area of 6.63 lakh hectares. Turning now to our FMCG segment, the quarterly revenue stood at $2,938 crores, with EBITDA of $190 crores and EBITDA margin of 6.45% in Q1, FY27.
Speaker #2: The segment contributed nearly 26% of revenues and nearly 30% of EBITDA excluding unallocable income during the quarter. Within FMCG by category, the biscuits generated revenue of $560 crores, registering year-on-year growth of 27%, reflecting continued consumer trust and preference, with EBITDA margin of 15.35% versus 9.35% in the same period last year.
Speaker #2: Revenue from consumer staples segment stood at more than $1,000 crores, in Q1, FY27, to a confluence of weather and geopolitical factors that are expected to create some challenges here, but healthy government grain inventories and timely policy intervention should help mitigate the impact.
Speaker #2: The textured share product division recorded revenue of $160 crores in Q1, FY27, growing 14% year-on-year and 50% quarter-on-quarter, with EBITDA margin of over 18%.
Speaker #2: Our beverage and food our beverage portfolio generated revenue of $38 crores, driven by extended summers, aided by delayed onset of monsoon, as well as new product launches including mango chutney, mango panna juice, and orange juice.
Speaker #2: These sales were softer during the quarter and generated revenue of $219 crores, reflecting the seasonal nature of demand and lower summer offtake in export-oriented markets.
Speaker #2: Particularly in the Middle East, where geopolitical tensions disrupted normal consumption and trade patterns. Our other food categories including honey, dry fruits, spices, and condiments, herbal products, etc., collectively generated revenues of $203 crores during the quarter.
Speaker #2: Revenue from nutraceuticals stood at $18 crores, with sports nutrition gaining significant momentum. Our home and personal care business delivered a strong performance with a total revenue of $629 crores, in Q1, FY27, within the category the skin care emerged as a major revenue growth driver, and dental care in stock on EBITDA and EBITDA margin side.
Speaker #2: The dental care segment generated revenues of $325 crores, followed by skin care at $165 crores, home care revenue stood at $83 crores, while hair care and other products generated $56 crores.
Speaker #2: Let me now give you a brief overview of the operating environment, with a combination of delayed monsoon and West Asia conflict we saw commodity price inflation in Q1.
Speaker #2: This touched both ways for us. On one hand, we carry long positions in edible oils, so the resulting commodity price inflation has actually been a net positive for the business.
Speaker #2: On the other, the same inflation raises input costs for several of our FMCG businesses, weighing on their profitability. Next next, the impact on Patanjali as a whole is smaller than it would be for a pure-free FMCG company, though we are operating in a challenging environment through this quarter and into the next.
Speaker #2: In edible oils, we had witnessed substantial drops in veg oil EBITDA last year. This, however, we are seeing inflation returning and volatile veg oil markets, driven largely by petroleum prices and genuine supply shortages, across the spectrum.
Speaker #2: This is worsening in our favor, offsetting much of the input cost pressure. Elsewhere in the portfolio, and keeps us on course to deliver both the growth and the overall margin construct we have guided through for the company, even after accounting for the raw material inflation flowing through the from delayed monsoon.
Speaker #2: In this dynamic environment, we remain agile on pricing, as input costs evolve. We took calibrated price increases in the edible oil segment while using targeted discounts in our FMCG portfolio, to remain competitive.
Speaker #2: We also introduced a smaller pack sizes to address changing consumer needs and market requirements. This calibrated approach to pricing and pack architectures has helped us navigate the environment effectively.
Speaker #2: Such pricing measures are continuing in the current quarter, as well as across the industry. Despite some delays in the monsoon, recent data on slowing of ferries, including rice pulses for cereal sugarcane, etc., has showcased resilience.
Speaker #2: Acreage gap has narrowed to 1.9% reserve last year. In fact, oilseeds saw a rise in area which is expected to get further boost with widespread rainfall across key growing regions.
Speaker #2: On the input front, the farmer's prices which began firming in March 2026 remain positive following the onset of the war, but turned marginally lower after de-escalation in the latter part of the quarter.
Speaker #2: Futures factored in the same, and prices turned lower, still domestic prices were supported by rupee deflation of 2.5% and again by festival period farmer's prices, the two-week high in mid-August.
Speaker #2: The soy oil price futures increased by 40% toward the end of March, then stabilized toward the end of June, the soft prices corrected by 66% amidst lower demand, leading to a sharper decline in physical prices, which further firming similar to farmland price trend.
Speaker #2: In the current environment, physical-oriented hedging strategies rather than reliance on futures alone, along with timely import purchases, helped us in capturing diversion and improved the margin.
Speaker #2: Weak prices have remained largely stable during the quarter, while mid-prices trended upwards on the back of higher procurement costs. Sugar prices too stayed firm amid lower domestic production and tighter inventory levels.
Speaker #2: Certain home and personal care products continue to face elevated input cost pressures. In addition to all the soy and increase in packaging, freight, and logistics costs during the quarter, let me now move on to some of the other key business updates for the quarter.
Speaker #2: I want to take a moment to share some updates on our team. Our CFO, Kumar Rajesh, was honored with the Best CFO of the Year award at the Asia Business Leader of the Year award.
Speaker #2: On behalf of the entire team, I want to congratulate him on this well-deserved honor. During the quarter, we launched several new products, including Rose Kanthiso, Gandh Kanthi Sensitive Toothpaste, Super Dishwash Liquid, Sweet Lime Pickles, Almond and Shavardash Cookies, in addition to our summer-focused merches.
Speaker #2: We've also rolled out a range of new Gandh Kanthi variants that are performing exceedingly well. We are increasingly micro-segmenting this portfolio by population by choice architecture and specifically to address the Gen Z requirements for the toothpaste.
Speaker #2: The state-owned category is expected to see the most rural stress-related pressure this quarter, while home and personal care overall should continue to grow well.
Speaker #2: On the distribution front, we continue to strengthen our presence across e-commerce and quick commerce channels, we remain confident in Patanjali's own right to win health, wellness, yoga, Ayurveda, and what I'd call the Indian-ness of our proposition, remain a core differentiated category for us in a market that is self-expanding.
Speaker #2: We feel strongly and comfortably positioned to keep growing at the pace we have guided to, even as the overall FMCG landscape becomes more competitive and different players go about it in different ways.
Speaker #2: I want to reaffirm a fullier guidance change we have laid out for the business. Edible oil margin construct between 3 to 5% volume growth for the year, food and FMCG 8 to 10% growth with beauty and personal care growing at around 15%, FMCG vertical EBITDA growth at 12 to 15% for the year.
Speaker #2: On that note, I would now like to open the floor for questions and answers with this, I conclude my opening remarks. And hand it over for the Q&A session.
Speaker #1: Thank you. We will now begin the Q&A session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone.
Speaker #1: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.
Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Abneesh Roy with Nuwama.
Speaker #1: Please go ahead.
Speaker #3: Yeah. Thank you. My first question is on the dishwash. So in the dishwash category, we have seen one large MNC temporarily kind of exit the market, and we are also obviously that announcement has come, that food range consumer wants to exit the liquid dishwash.
Speaker #3: Currently, obviously, this segment is dominated by India's largest company, FMCG company. So I wanted to understand what is your thought on getting success in this segment, and do you see a big potential given the segment is currently seeing less competition because of that MNC marketing?
Speaker #3: Thank you.
Speaker #2: Yeah. So Abneesh, look, the dishwash is actually a fairly strong both as a category and as a line that we have. And it is done exceedingly well.
Speaker #2: So we have no intention of either exiting or slowing down on that. We'll continue launching on the variants. That market is expanding. And to be specific, name of the companies that you mentioned, that is a more a personal decision they have made.
Speaker #2: On the corporate level, what might have been decided, but we are pretty much doing quite well in that segment. I don't have the number readily available specifically for the dishwash part of it, but very happy to share that with you post this call.
Speaker #3: Understood. My second question is on biscuits. So last six months in biscuit industry, we have seen two, three players operate at the odd pricing, 4.59 rupee.
Speaker #3: So if you could tell us now that mostly everyone has exited, how does this impact the overall growth for the market leader and for you also?
Speaker #2: So again, my actually, it's one of our stronger stories are good success stories. Of our brand has been that how we've kept not just the quality part exceedingly in control, have kept the unique positioning being the only ATA biscuit player in the marketplace.
Speaker #2: And have grown that consistently. So that brand of good biscuit that we have in the category of 5 and 10 rupees, we do almost 1300 crores of business annually.
Speaker #2: So it's a huge brand for us. And beyond the threshold, as you would see that even the EBITDA margins have continued to expand. Quarter on quarter and year on year.
Speaker #2: So this quarter, for example, we did nearly 15% plus in EBITDA on the biscuit. And I would say that very substantial part of that has been driven by, as a back of the success of good biscuit on continued expansion.
Speaker #2: While we balance the portfolio of biscuits by launching, as we mentioned, that both the almond cookies and the 75 cookies, which were launched, there are series of two products towards the premium end of the offering that we are planning.
Speaker #2: But we are very committed. We see a very positive growth in that segment. And we'll continue to remain very active in that segment. Yes, we might go towards maybe premium good biscuits.
Speaker #2: We might look at more variants, in line with the brand building that has happened over the years. But otherwise, we are very committed to 5 and 10 rupee sort of price points at which we are doing.
Speaker #2: And I think that's served exceedingly well the company's objective overall.
Speaker #3: So last quick question. When I see your initial comments on staples, and your recent media interviews, I find your comments a bit on the cautious side.
Speaker #3: And if I see the Q1 call of other staples companies, generally, they are reasonably positive, of course, price cycle further accelerate. And on the volume demand side also, generally, companies are quite okay.
Speaker #3: No one is sounding overtly cautious. So I want to understand one, why there seems to be some difference? And second, what kind of price hike if you can tell us you have taken in which categories?
Speaker #3: Thank you.
Speaker #2: So there are two factors which are driving this question. And I think we'll see that unfolding over this quarter in the subsequent quarters. One is that this Elvino impact is still very unclear in the way how markets are going to react, both on the production side and the availability side.
Speaker #2: And very direct impact of that could be on the food inflation which is there number one. Number two is that the rural incomes and the rural market demand side will have to watch with a great deal of care as to how they play out.
Speaker #2: If at all we see some stress, and resurfacing of some demand contraction there. I'm largely very positive in terms of the price outlook on the and bullish on the commodity pricing.
Speaker #2: And so that has both sides. One is that in terms of the top line growth, it can continue to sustain. So that I'm very much aligned on that.
Speaker #2: But in terms of the margin and the demand side of it, and in terms of how that goes out, I think there we'll see some potential challenging environment I see definitely there.
Speaker #2: And this may also have an impact on the margin construct. But the most important part is that we still have to see that the reaction from the policy side if indeed we see back to certain commodities control order and essential commodities et cetera in location of that.
Speaker #2: So we'll have to wait for that. I think so that's why I've been in the middle of cautious on that front. But overall, staples will continue to grow.
Speaker #2: There's just no question about it. So that's a positive as well. And we have in any case given a guidance of 8 to 10% growth on the staple side.
Speaker #2: In the overall food business also. And we pretty much stayed true to that.
Speaker #3: Sure. Thanks. That's all from me. Thank you.
Speaker #1: The next question comes from the line of Abhishek Mathur, with systematics group. Please go ahead.
Speaker #3: Yeah. Hi Sanjeev sir. Good morning. And thank you for the opportunity. So this the foods segment seems to have recovered quite well this quarter.
Speaker #3: After some time, just wanted your thoughts on what is leading this recovery across both ethnic foods as well as the staples. Seems to be quite strong turnaround.
Speaker #3: Yeah, that's my first question.
Speaker #2: Yeah. So we had a very good as I was mentioning earlier, that both in terms of the volumes and in terms of the revenue, so there has been an inflationary sort of buoyancy which has driven that.
Speaker #2: So growth versus the sequentially, if I look at the previous quarter itself, our overall the revenues and staples have grown almost to 60 crores.
Speaker #2: So which is 30% growth. And we grew our ethnic food side. There was some contraction that we witnessed. But net-net the overall expectation is that this will continue to grow.
Speaker #2: Partially by volume and balanced by the price inflation that we're expecting to see across the board. The second part is that there was an extra focus on some of the unique product categories that we have, like kesar and rice et cetera.
Speaker #2: Where we saw the immediate buoyancy in the both the demand side and the pricing side. So we benefited from that. And I think we'll continue to drive that to growth.
Speaker #2: We've come out with new variants also, both on the lentils, on the pulses side, as well as on the side of basil et cetera.
Speaker #2: So we have seen some bit of the added sort of demand as it is getting driven. And the company will continue to focus. So while it generates lesser margin, but it is one of the good indicators of as to the reach that it develops and builds up.
Speaker #2: And companies are present in the kitchen so that is something which is a stated target that the company has. And which will continue to sort of work towards.
Speaker #3: Right. So just as a follow-up, what was the approximate breakup of the growth in foods in terms of pricing that you took for the quarter and the volume growth?
Speaker #2: So overall, the volume growth has been around 7 to 8% is what we have seen across the segment. And so total okay. So I've just got the specific number.
Speaker #2: The volumes have grown by 5%. And the pricing inflation that came in was almost about 12%.
Speaker #3: Understood, sir. And secondly, maybe in case I missed, what was the EBITDA number for our HPC for staples and for ethnic foods these three divisions separately?
Speaker #3: If you can give it out.
Speaker #2: Yeah. So for ethnic foods, they are EBITDA was 9 crores. And for the HPC as an overall basis, our overall HPC EBITDA was 122 crores.
Speaker #3: Right. And for staples?
Speaker #2: For staples, as a category, we had negative 59 crores.
Speaker #3: Understood, sir. Thanks. That's it from me. All the best. Thanks.
Speaker #2: Thank you.
Speaker #1: A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Sanjay with RSS Investments.
Speaker #1: Please go ahead.
Speaker #2: Hello. Hello.
Speaker #1: Sanjay, please go ahead with your question.
Speaker #2: Hello. Good morning. Management team. So my first question is regarding the current situation in the case with Arshav Advisory. What is the current situation?
Speaker #2: So that we can because it has mattered up to this. And we can take it up. And we can discuss it post the call.
Speaker #2: So how should I connect to you? What's the call? Hello. I said you can take our number from the SGA advisors. And you can reach out to us.
Speaker #2: And we can discuss that separately. Okay. So my second question is regarding the Nutraceutical deal going in the international market. Are we aware of that?
Speaker #2: Megatonic bank being capital bank. Hello. I would not be able to I don't have the specific details. So these deals, I would not be able to comment on that.
Speaker #2: Sir, for example, being capital buying Vita Biotics, at a very huge price, I just want to know your comment on that. So I can give you a general comment, not on the specifics of being capital's acquisition.
Speaker #2: That Nutraceuticals is one of the fastest growing. And segments in the health and wellness space across the board. And this is across the world itself.
Speaker #2: So yes, I think in India also you're seeing the proliferation of brands and companies which have gone into the segment. We ourselves did the serious amount of work on Nutraceuticals.
Speaker #2: Then we took a step back, reconstructed our entire portfolio, started building that up. And we have turned positive now from earlier marginal negatives that we were witnessing.
Speaker #2: We have now turned positive. And we intend to continue to grow that. And I'm hoping that it will become one of our stronger performing businesses in the future.
Speaker #2: Okay, sir. Thank you. That's from my side. Thank you.
Speaker #1: The next question comes from the line of Rohit Kumar with ADM Advisors. Please go ahead. Rohit, please. Yes, Rohit, please go ahead.
Speaker #3: Yeah.
Speaker #1: Rohit, please go ahead with your question.
Speaker #3: Yeah. Hello. So my first question was on the since we have seen that historically, we have observed that TSP doing well in terms of when we observe higher food inflation.
Speaker #3: So are we observing similar trends currently as well?
Speaker #2: Sorry. Your question was related to the TSP, right?
Speaker #3: Yes.
Speaker #2: Okay. And what was the question? Can you repeat that again, please? It was slightly muffled.
Speaker #3: Yeah. So historically, we have seen that TSP doing well when we observe higher inflation. Food inflation. So are we observing similar trends currently as well?
Speaker #2: No. TSP for us is look, you're right. In fact, TSP at a higher commodity inflation tends to do not so good. But neutralize a strong brand, we nearly have 40% market share.
Speaker #2: And so this quarter, for example, we did 150 crores of business. And we had 18% plus of EBITDA margin on that. So because the soybean prices tend to go up sharply, and our ability to pass through that price increase regularly is limited.
Speaker #2: So typically, it tends to do less better. And overall, it's becoming a hyper-competitive space as well. But we are quite confident that we'll continue the guidance that we've always given is that our margins will be 16 to 18 percent on the TSP.
Speaker #2: I think we'll be able to maintain that. We're doing a little shade better than 18%. But I'm confident that we'll maintain that for the year as well.
Speaker #3: Okay. And sir, looking at the current environment, how are we looking at the revenue contribution from the FMCG segment incoming quarter?
Speaker #2: So incoming quarter this year, last year, we've done close to 10,000 crores of revenue. And this year, overall, my expectation is that we will cross that.
Speaker #2: We have given a guidance of more than 10 to 12 percent growth will overall witness. So for example, last year, our total sales from FMCG overall was, including the HPC, was 11,000 crores plus.
Speaker #2: And this year, my estimation is that we should certainly cross increase it by 10% plus. And we should be somewhere closer to 12 and a half thousand crores in our revenues.
Speaker #3: Okay. And sir, one last question. If we look beyond FY27, what are the biggest structural reverse that can take Patanjali Foods from its current earning potential to a significantly higher ROC and EBITDA margin business?
Speaker #3: Will it be FMCG mix, or it will be premiumization, or it will be higher distribution productivity, or backward integration, or maybe something else? Can you put some light on it?
Speaker #2: Yeah. So look, there are three factors which are driving the growth of Patanjali's businesses and profitability. One, is our strong momentum that we have on the oil palm plantation.
Speaker #2: And we've consistently shown a growth. This year, our anticipation is that we should have a growth momentum of more than 15% again. On our business.
Speaker #2: And that on a structural basis is going to become a large profit generator. And a consistent margin generator for the company. That's why. Second is there is an effort across the board that the high profit-making kind of businesses like HPC and similarly, our Nutrella and biscuits.
Speaker #2: We will expand our margin construction there. So that will be the big second big driver of the growth. And the third is that in terms of superior risk management that we have, in terms of the brand building that we do on the edible oil side, how do we increase our margin construct?
Speaker #2: Typically, what we say is between 2 and 4 percent. Towards consistently 5% plus, will be a big driver of growth. So if you notice that our performance across all the business categories, I've shown very good performance.
Speaker #2: Other than one or two blips that we have on the food side, which is also by way of abundant caution, in terms of some inventory markdown in case of certain quality issues that we saw in pulses in the stocks that we had.
Speaker #2: And the higher input inflation in terms of packaging, in terms of commodity and otherwise, which has had some impact on our overall food business.
Speaker #2: Our margin construct across the board is very strong. We continue to perform exceedingly well in biscuits, neutralize very good, which continues to sort of outdo itself in terms of projections.
Speaker #2: Nutraceuticals have turned the corner. Oil palm plantation is doing exceedingly well. Our crush business is doing very well. Our edible oils category is doing very well.
Speaker #2: The only blip that we had this quarter was on the food side. And within food specifically on the staples and partially on the ethnic foods, that we are reasonably confident that we'll be able to hide over it.
Speaker #2: There is some challenge that the industry is also facing, that we are also facing. So net-net in terms of the overall growth momentum, these steps, I believe, is going to drive our growth in the future.
Speaker #2: And in terms of the next trajectory level of moving closer to 2500 crores of EBITDA, hopefully, I think over the next 18 months on an annualized basis, I'm reasonably confident that we should be able to head in that direction.
Speaker #3: Thank you, sir. That's it from my side.
Speaker #1: Participants, please press star and one to ask a question. The next question comes from the line of Payal Shah with Billion Securities. Please go ahead.
Speaker #4: Yeah. Hi. Thank you so much for the opportunity. I just have two questions. First, how are our newly launched products performing in the industry?
Speaker #4: And how is pipeline of the upcoming products looking?
Speaker #2: So sorry, what was the first part of the question? The relaunch of what?
Speaker #4: No, no, sir. I just wanted to know how are the newly launched products performing in the industry? And what is the upcoming pipeline of products that we're looking at?
Speaker #2: Okay. Okay. So the newly launched products, in general, have tended to do well. And as you know, that the success rate is always dependent on factors of the market acceptability etc.
Speaker #2: So we do have a part that between 30 to 35 percent of the product that we launch typically do not tend to do as well.
Speaker #2: And then either we tweak them or work through that. But our success rate, I would say, is 60 percent of our launches typically tend to do well in the marketplace.
Speaker #2: And they take time in terms of further attention and drive that we have to get. And balance set of products which we if they are not up to the level, then either we tweak them, either we reorient them and work towards that.
Speaker #2: So I would say two-thirds, one-third is a success rate. Our pipeline for new product development, I would say, is amongst the better performing parts of the Patanjali where our ability to innovate and come out with products with inequal succession so our new product development sort of teams are constant work that we do in the marketplace.
Speaker #2: I think it's one of the stronger points that we have. So you will see in the coming quarter a few of new products that are getting launched in the HPC category, a few of products that we are working on in terms of the multiple variants that we have on the, as I mentioned in the initial remarks as well, on the dental care, on the skin care, there are a large number of products on the biscuits we've launched multiple different new products.
Speaker #2: So I think there's a very strong sort of architecture of layered new launches that we do. And I'm quite confident that we will see a reasonable good success rate in these newly launched products.
Speaker #4: Okay. Thank you so much, sir. That is quite helpful. My next question is, competitors are going bigger on e-commerce and quick commerce platforms as a mode of distribution.
Speaker #4: How are we looking at these channels and what kind of revenue contribution can we expect from these channels?
Speaker #2: So we are very strong as I had mentioned in the past that we're going at 25 percent year-on-year on the both quick commerce and e-commerce.
Speaker #2: Currently, if I were to put those numbers together, we right now do close to about 15 percent between modern trade and e-commerce quick commerce.
Speaker #2: We want to take that number up to 20 percent. And I'm confident that over the next 18 months, we will see our numbers reaching 20 percent of the overall revenue through these channels.
Speaker #2: So we are available across the board on all these platforms. And we continue to increase our presence on that basis. So we've moved up in last 15 months from 12 percent to 15 and taking it from 15 to 20 percent is one of the stated objectives the company has.
Speaker #2: On these emerging distribution channels, and we continue to drive that growth.
Speaker #4: Okay. That's quite helpful, sir. That's a summarizer. Thank you.
Speaker #1: The next question comes from the line of Keshav Harlalka with BHH Securities. Please go ahead.
Speaker #5: Hi. Hi. Thank you so much. Is this Sanjeev Asthana, sir I'm speaking with?
Speaker #2: Yes.
Speaker #5: Yes. Hi, sir. So I was sitting behind you when Ramdev Baba came to BSC in July to give a presentation. Just the day prior, I was stock price crashed 14 percent.
Speaker #5: So I have a question that we have acquired we have paid 1100 crores and we have acquired Patanjali Ayurvedic home and personal care business.
Speaker #5: We have paid purchase concentration of 1100 crores. So there is some misgiving in the market that we have overpaid for this acquisition. So can you give us some color?
Speaker #5: Can you give some release on BSC and NSC? What is the valuation methodology we have followed and how shareholders are benefiting from this acquisition?
Speaker #5: And how is the numbers look for because we have acquired it in July. I think we'll see the numbers from this quarter onwards. So how is the numbers be better and different this quarter onwards versus the corresponding quarter previous year?
Speaker #5: What is the PE multiple we've acquired the business at? What kind of earnings can we what kind of earnings addition can we see for this new business we've acquired?
Speaker #2: So I'll first of all, let me tell you, there is no earning multiple or nothing. It has almost come free. To Patanjali Foods, the listed entity.
Speaker #2: We paid on a slump sale basis in November 24 on the business which has generated almost 600 crores of EBITDA margin last year. So if my numbers are right, Rajeshji, what we paid 1100 crores or 950 crores?
Speaker #2: 1100.
Speaker #3: 1100. Non-foodwise for 1100.
Speaker #2: So it is a business of it was 2900 crores. It was generating a margin of 600 crores. And we have paid 1100 crores, which is less than 18, 19 months of running.
Speaker #2: And which is already in last 18 months, it has already repayed that much. And substantially. So that answers your question straight up. There was no valuation methodology, nothing.
Speaker #2: It was just the state is on a slump sale basis that we sold we acquired the business.
Speaker #5: So basically, Patanjali Foods is quoting it a PE multiple of 20. So he basically acquired it for almost free. So I'm just saying that if you can give some clarification, some valuation, some slump sale that the shareholders have got a very good deal.
Speaker #5: This price fall from 415 to 345 disconcerting. So if we can give some clarification to NSC and BSC, some valuation, some note, we can give it will definitely help all the shareholders, sir.
Speaker #2: So that was.
Speaker #5: This is just a suggestion from my side.
Speaker #2: Sure. So Rajeshji, I'll just answer then you give your.
Speaker #3: Yeah. Yeah. Yeah. Yeah. That clarification.
Speaker #2: We have done three acquisitions in the business. In Patanjali Foods, the listed entity. The first one that we acquired was biscuits business. Then we acquired the foods business.
Speaker #2: And then we acquired the HPC business. All the three businesses, we acquired on a slump sale basis, which is basically just the assets that we paid for and the inventory that they carried at that point of time.
Speaker #2: There's no valuation methodology. There was nothing. So this was almost gifted by the parent to the listed entity. And at a slump sale basis, which is a standard methodology of how the transaction can be done under the Indian law.
Speaker #2: And they cannot be a better form of these acquisitions, which has tended to help us with the level of and they have paid biscuits, for example, has paid multiple times of its acquisition cost.
Speaker #2: The amount of similarly, the food business has already paid off completely what we acquired it for. And likewise for HPC, that's already paid up for that.
Speaker #2: So I don't think it requires any clarification on this bit because it's a complete misconception or complete wrong piece of information that they carry which just makes no sense at all.
Speaker #5: And thank you. Thank you. Yeah.
Speaker #3: I would like to further add these information was already given into the stock exchange at the time of acquisition of these business to Patanjali Foods Limited.
Speaker #3: Basically, detailed explanation was given to the stock exchange and in the shareholders meeting also. So all these transaction was approved by the shareholder shareholders in the shareholders meeting.
Speaker #3: So I don't think any further clarification is required in this case.
Speaker #5: Got it. Got it. So just one last question from my end. So we showed a 84% growth in profit in Q1 of this year versus Q1 of last year.
Speaker #5: So can we see a similar trajectory going forward for Q2, Q3, Q4? Can you give us some light on what we could expect for these coming three quarters?
Speaker #2: No, sir. As I mentioned that, I think the performance is subject to obviously the market conditions. But broadly, the guidance that we have given, I'd like us to stay within that, that we will grow at the rate of 10% plus year on year on the on the margin construct.
Speaker #2: And that is how it is going. Our top line has already mentioned that foods overall between 8 to 10 percent, HPC at 15%, and our edible oils between 2 and 4 percent.
Speaker #2: And our margin construct similarly, that on EBITDA margins overall basis, we should be between 10 to 12 percent growth in the margin construct as we go forward.
Speaker #5: Okay. Thank you. Thank you so much, sir. Thank you so much.
Speaker #4: A reminder to all participants, you may press star and want to ask a question. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Sanjeev Asthana for the closing remarks.
Speaker #2: So with this, I conclude the call. I sincerely thank you for your continued support and trust in Patanjali Foods. If you have any further queries, please reach out to SG, our advisor relations advisor.
Speaker #2: Thank you very much.
Speaker #4: Thank you, sir. Ladies and gentlemen, on behalf of Patanjali Foods Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.
