Jyothy Labs Faces Profit Squeeze Despite Revenue Growth

Jyothy Labs Ltd reported a 3.87% drop in net profit to Rs 87.40 crore for Q3 2024, despite a 4% rise in revenue from operations reaching Rs 704.45 crore. The company recorded 8% volume growth and stable gross margins, but faced increased expenses and a reduced EBITDA margin.

FMCG giant Jyothy Labs Ltd experienced a 3.87% decline in its consolidated net profit, amounting to Rs 87.40 crore for the third quarter ending December 2024.

This setback comes in contrast to the same period last year when the company recorded a net profit of Rs 90.92 crore, as revealed in its regulatory filing.

Despite this profit dip, the company's revenue from operations saw a 4% increase, climbing to Rs 704.45 crore, alongside an 8% growth in volume.

However, Jyothy Labs encountered rising expenses, which grew by 5.5% to Rs 604.46 crore, and a drop in its EBITDA margin from 17.5% to 16.4%, impacting overall profitability.

Revenue breakdown highlights included Rs 322.13 crore from Fabric Care, Rs 244.59 crore from the Dishwashing segment, and Rs 34.42 crore from Household Insecticides.

Jyothy Labs' total revenue, accounting for other income, also rose 4% to Rs 718.30 crore. On Friday, shares concluded at Rs 399.10 per scrip on the BSE, marking a 0.81% increase.

(With inputs from agencies.)