Jyothy Labs Q2 profit down 27 pc to Rs 44 cr

Homegrown FMCG firm Jyothy Labs on Tuesday reported 26.87 per cent fall in consolidated net profit at Rs 43.97 crore for September quarter 2021-22 as the company faced pressure on margins due to rise in input prices.

It had posted a net profit of Rs 60.13 crore in July-September period a year ago, Jyothy Labs said in a regulatory filing.

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However, revenue from operations was higher at Rs 585.35 crore during the period under review as against Rs 504.49 crore in the corresponding period of the previous fiscal year.

"Due to consistent rise in input prices, there has been a margin pressure which has been partially managed with calibrated price hikes and persistent cost rationalisation measures. We are taking necessary steps to balance between higher volume growth, market share and margins keeping in mind long term benefits for all the stakeholders," said Jyothy Labs in a post earning statement.

Total expenses were at Rs 535.58 crore in the quarter as against Rs 435.71 crore.

"Our focus on execution to build scale with agility has created value for all our stakeholders. We are consistently achieving higher sales growth resulting in market share gains across categories which will strengthen the organization in the long term," Managing Director M R Jyothy said.

Though Jyothy Labs is facing margin pressure due to high raw material prices in the short-term, it has strategic levers to overcome as its sales growth has been encouraging and affirmative, she added.

Revenue from Fabric Care was at Rs 214.14 crore and Rs 215.89 crore from dishwashing during the quarter under review.

Household Insecticides segment revenue was at Rs 62.75 crore and personal care contributed Rs 66.13 crore in July-September this fiscal year.

Revenue from Laundry service was at Rs 6.35 crore.

Shares of Jyothy Labs on Tuesday settled at Rs 159.65 apiece on BSE, up 2.64 per cent from the previous close.