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Business News/ Markets / Stock Markets/  Patanjali Foods share price dips over 4% as Supreme Court issues contempt notice
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Patanjali Foods share price dips over 4% as Supreme Court issues contempt notice

Shares of FMCG company Patanjali Foods fell by 4.13% to ₹1,555 apiece in today's early morning trade after the Supreme Court on Tuesday served a contempt notice to Ramdev-owned Patanjali Ayurved and its managing director Acharya Balakrishna.

The quarterly profit after tax (PAT) stood at ₹216.5 crore, a decrease from ₹254.5 crore in the third quarter of the previous fiscal year. (iStockphoto)Premium
The quarterly profit after tax (PAT) stood at 216.5 crore, a decrease from 254.5 crore in the third quarter of the previous fiscal year. (iStockphoto)

Shares of FMCG company Patanjali Foods fell by 4.13% to 1,555 apiece in today's early morning trade after the Supreme Court on Tuesday served a contempt notice to Ramdev-owned Patanjali Ayurved and its managing director Acharya Balakrishna for going back on their promise to not make "misleading claims" in advertisements for its medicines. 

Also Read: SC slaps contempt notice on Patanjali Ayurved for misleading ads

The apex court also barred Patanjali from promoting products claimed to cure diseases such as heart ailments and asthma. This ruling came after the Indian Medical Association (IMA) presented evidence in court, including a Patanjali advertisement in The Hindu newspaper and a press conference where the company claimed to have completely cured sugar and asthma with the help of yoga. 

The court found Patanjali in violation of the previous court order, which prohibited Patanjali from issuing misleading advertisements and making misleading claims.

However, Patanjali Foods, in a regulatory filing on the same day, said, "The observations of the Supreme Court of India do not relate to Patanjali Foods Limited, which is an independent listed entity and operates in the space of edible oil and food FMCG products only."

Also Read: 'Govt sitting with eyes closed': Supreme Court raps Centre, slaps temporary ban on Patanjali's 'false' ads

In the third quarter (Q3FY24) of the fiscal year 2023–24, Patanjali reported revenue from operations at 7,910.7 crore, indicating a marginal growth of 1.1% compared to the previous quarter. The total income, including other sources, was recorded at 7,957.3 crore. 

The company achieved an EBITDA of 390.6 crore, while the EBITDA margin came in at 4.9%, down from 5.3% in the preceding quarter (Q2FY24) and 5.1% in the same quarter of the previous year. 

Also Read: ITC vs HUL: Which FMCG stock should you pick for long term?

The quarterly profit after tax (PAT) stood at 216.5 crore, a decrease from 254.5 crore in the third quarter of the previous fiscal year.

Additionally, the company reported export sales of 62.1 crore for the quarter, with revenue from exports totaling 266.2 crore for the nine-month period ending in the third quarter of the fiscal year 2023–24.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

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Published: 28 Feb 2024, 09:51 AM IST
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