Patanjali reports 21% net profit increase in 2020 financial year
Ayurvedic personal care and lifestyle brand Patanjali reported a 21% increase in net profit to total Rs 425 crore ($63.9 million) in the 2020 financial year, up from Rs 349 crore in the 2019 financial year.
Patanjali saw a significant increase in sales in the financial year that ended on March 31, 2020 and revenue marked as ‘other income’ increased threefold during this time period, TNN reported, citing data from business intelligence platform Tofler. Other income totalled Rs 65.19 crore in the 2020 financial year compared to Rs 18.89 crore in the previous financial year.
The brand’s revenue from operations increased by 5.9% to total Rs 9,023 crore in the 2020 financial year compared to Rs 8,523 crore the year before. The brand’s sales growth has been its fastest in the past three years, but is still markedly less than during its most successful period around the 2016 and 2017 financial years.
Following a drop in profit in the 2018 financial year, Patanjali has continued to expand its operations and product selection. In December 2019, the brand acquired the bankrupt Ruchi Soya plant for Rs 4,350 crore through insolvency proceedings, greatly expanding its production capacity. The brand caused a stir recently when it announced it had created an Ayurvedic ‘coronavirus cure’, which was met with criticism and alleged legal issues with local authorities.
Copyright © 2022 FashionNetwork.com All rights reserved.