Patanjali Foods · tone and specificity signals across the available quarters.
Language signals
We have taken a very conscious choice that we will continue building the business selectively where it makes sense for us. But if it means a direct cash loss, if it means a very direct too much of exposure that we might have to the government's intervention then we'll be careful with that category.
Our view is very clear that 200 basis point margin expansion that we'd like to attain in the FMCG we'd like to go upwards of in the double digit minimum EBITDA margin on the FMCG that we want to clearly establish.
Our longer-term construct of margin is 8 to 10% that we're looking at on the FMCG side and very clearly we're looking at the margin construct on the edible oil between 2 and 4%. The company's aspiration is that we would like to grow our revenues to 50,000 crores of which 25,000 crore should come from FMCG, 25,000 crore from edible oil and the margin should expand towards the double digit EBITDA.
The state category is expected to see the most rural stress related pressure this quarter while home and personal care overall should continue to grow.
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.
On the input front, the palm oil prices which began firming in March 26 remained positive following the onset of the war but turned marginally lower after de-escalation in the latter part of the quarter.
The biscuits we increased grammage and in case of shampoo and hair oil the price benefit was transferred through the pricing itself... It is entirely on the volume growth and this has come through distribution expansion.
We have targeted that we will take that 18% [HPC EBITDA margin] by 200 basis points over next 18 months... based on several changes that were introduced we've been able to accomplish almost nearly 25% EBITDA in this quarter now.
Two-thirds of the margin is now accruing from non-edible oil proportion... 71% margin came from the FMCG segment in this quarter and about 36% margin came from the edible oil whereas the edible oil segment contributed 69% and the FMCG segment contributed about 31%.