Patanjali Foods Q2 profit doubles as lower costs offset revenue drop

India's Patanjali Foods on Friday reported a second-quarter profit that more than doubled as a slump in expenses outpaced falling revenue, dragged by lower edible oil prices.

The Ruchi Gold oil maker's profit rose to ₹255 crore ($30.63 million) in the quarter ended Sept. 30, from ₹112 crore a year earlier.

A more than 23% drop in raw material costs helped Patanjali's total expenses to fall more than 10% to ₹7511 crore.

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Meanwhile, the slide in spends helped offset a 8% decline in Patanjali's revenue from operations to ₹7822 crore. Revenue from edible oils, which accounted for 69% of its topline in the quarter, dropped over 13%.

India's record edible oil imports and weaker global oil prices have weighed on edible oil companies. Last week, Fortune-maker Adani Wilmar posted a loss for the quarter.

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Revenue rose about 5.5% in the company's food business, which makes Patanjali-branded biscuits and the "Nutrela" line of products from wheat flour to honey.

Patanjali Foods CEO Sanjeev Asthana said in a statement he is optimistic that the festival season and increase in consumer spends will drive growth in the next quarter.

Consumer companies grappled with weak rural demand in the first two months of the July-September quarter due to peaking inflation and delayed monsoons.

However, easing food prices and rains picking up in September helped them claw back, a NielsenIQ report showed.

Shares of Patanjali Foods closed up 1.15% ahead of the results, leading to an overall year-to-date increase of 22%.