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Jyothy Laboratories Ltd reported a 7.2 per cent increase in net profit to ₹45 crore in the second quarter of this financial year as against ₹42 crore in the corresponding quarter of last year.
Revenues went up by 7.1 per cent to ₹428 crore during the quarter. Ullas Kamath, Joint Managing Director, Jyothy Laboratories Ltd, pointed out that the floods in Kerala proved to be a setback, as the State contributed around 15 per cent of the company’s annual turnover.
Kamath said that although the company lost around ₹40 crore of revenue this quarter due to the Kerala floods, the rest of the country contributed around 16 per cent topline growth. The floods in Kerala brought down the revenue growth to 7.1 per cent, he said.
“But, in that context, it is a good number,” he added.
Kamath said that the gross margin has increased by 1.6 per cent, when compared to the same period last year. “There is a also a higher EBITDA (Earnings before interest, taxes, depreciation, and amortisation) margin, from 16 per cent to 17 per cent now, and the net profit has increased from ₹42 crore to ₹45 crore,” he added.
Kamath remained confident of attaining a topline revenue growth of 12 to 14 per cent this fiscal year. “We are on track to achieve a topline growth of 12 to 13 per cent this fiscal, because in the first quarter, we achieved around 20 per cent topline growth, and now we achieved 7.1 per cent despite the Kerala floods. So, I am at 13 per cent overall for the half-year now. In the second half also, I should be able to do close to 12-13 per cent,” he said.
The monsoon being normal, the government having announced a minimum support price for the farmers, the government spending on the social sector, mudra banks, direct transfer money and other similar factors have enabled them to expect this goal. He said that, “Normally, the GDP of the country plus 4 or 5 per cent is the fast-moving consumer goods (FMCG) growth. It’s all linked to the economy, the consumption, and the money in the hands of the people.”
He also said that now that the quarter marred by the floods are behind them, they can expect the second half of the year to be better.
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