Jyothy Labs posts 29% drop in Q3 net profit at Rs 38 cr
FMCG firm Jyothy Labs Ltd on Friday reported a 28.57 per cent decline in consolidated net profit at Rs 38.02 crore in the third quarter ended December 31, 2021 on account of higher expenses. The company had posted a consolidated net profit of Rs 53.23 crore in the same period last fiscal, Jyothy Labs Ltd said in a regulatory filing.
Consolidated total income during the period under review stood at Rs 542.66 crore as against Rs 482.99 crore in the year-ago quarter, it added.
Jyothy Labs Ltd Managing Director M R Jyothy said the company has been able to grow sales in spite of a challenging higher input price environment resulting in increase in retail prices which impacts consumers’ purchasing power. “While we continue to face margin pressure, we will focus on our strategic levers to offer better value proposition to consumers and focus on distribution which will aid in accelerating us towards higher revenue growth,” she added.
Fabric care segment clocked revenue of Rs 209.08 crore in the third quarter as against Rs 175.87 crore in the year-ago period. The segment has seen improvement in sales across all brands with acceleration in sales at modern trade and canteen store department. Further, post wash segment has seen sequential improvement every month and has reached pre-Covid levels, the company said.
Dishwashing category registered Rs 201.13 crore revenue as compared to Rs 182.09 crore in the third quarter last fiscal. The growth is supported by good momentum backed by greater emphasis on hygiene and strong distribution focus across all channels, it added.
Household insecticides segment had a revenue of Rs 51.44 crore, up from Rs 46.86 crore in the year-ago quarter, while that of personal care was flat at Rs 52.97 crore as compared to Rs 52.86 crore in the same quarter a year ago. Total expenses during the third quarter were at Rs 495.32 crore as compared to Rs 414.93 crore in the same period last fiscal. Cost of materials consumed stood at Rs 269.18 crore as compared to Rs 203.67 crore in the same period last fiscal, the company said.
“The quarter has witnessed mixed consumer sentiment with normalisation of economy in spite of ongoing pandemic affecting day-to-day lives, however, higher inflation has adversely impacted the monthly household budgets of the consumers,” Jyothy Labs said.
The higher raw material input costs have impacted the margins which have been partially managed with calibrated price hikes and persistent cost rationalisation measures, it added. “In spite of pressure on margins, we have focused on promotional activities and judicious media spends to support full business potential of our brands and distribution and expect significant benefits in future to enhance long-term shareholder value,” the company said.