Shares of Patanjali Foods' hit the lower circuit as the markets opened on Tuesday.
What Happened: The company posted its third-quarter results last week, and the stock has since been taking a beating at the bourses. The shares of the FMCG firm are down around 16% since Jan. 23.
Patanjali Foods, formerly known as Ruchi Soya Industries Limited, saw an around 7% quarter-over-quarter decline in its revenue from ₹8,524.7 crore in the second quarter to ₹7,963.8 crore in the latest quarter.
The company posted a 15% year-over-year increase in profits at ₹269 crore. The quarter also saw the company bounce back from the previous quarter's underwhelming numbers as it saw an around 140% increase in its net profit from the second quarter of financial year 2023.
The company, a subsidiary of the Baba Ramdev-led Patanjali Ayurved, attributed the increase to the sale of edible oils and the demand led by the festive season.
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
"The prices of edible oils, the biggest portion of the company's revenue, have stabilised and recovered from the sharp decline witnessed in Q2. Festive and marriage season revived the demand for the food products during this quarter,” the company said in its regulatory filing.
The numbers seem to have not cheered up the investors as the company's stocks plunged around 14% since the results came out on Jan. 25.
Price Action: Patanjali Foods' shares crashed 5% to hit the lower circuit at ₹994.65 as the markets opened on Tuesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.