Jyothy Labs Q1 profit declines 45.9%
Mumbai: Detergent maker Jyothy Laboratories Thursday reported a 45.9% decline in profit for the quarter ended June even as net sales declined 14.9% to Rs385.04 crore.
The maker of detergent brand Ujala and dishwashing brands Exo and Pril saw its revenues decline across all categories it operates in. The company saw a 14.2% decline in revenues from dishwashing—its largest segment—and 14.9% in fabric care, in line with overall decline in revenues. Sales for the company’s flagship brand Ujala fell 21.2% during the quarter.
The company reported that de-stocking across distribution channels, including wholesale, affected the company’s quarterly performance. General trade, that makes 79% of the firm’s total sales declined 18% sequentially, the company said in an analyst presentation.
“During the quarter, the company started working closely with all its stakeholders for a smooth transition to a landmark tax reform for our country, Goods and Services Tax (GST),” M.P. Ramachandran, chairman and managing director of Jyothy Labs, said in a press statement. “While there continues to be some short-term challenges in the shift to new tax regime, we are confident the company is well positioned to reap benefits in the quarters to come,” he said.
Besides, the company’s sales declined significantly in Kerala where members of the All Kerala Distributors’ Association (AKDA) issued an order in the first week of June to stop purchase, the company said in its analyst presentation. This led to sales losses worth Rs40 crore. The company called the situation in Kerala “acute”, saying that sales in the state alone declined 51% sequentially during the quarter ended June 2017. However, the company added that “normalcy” was returning.
Shares of Jyothy Labs were trading at Rs381.70, up 2.35% at 2:28pm while the benchmark BSE Sensex was at 32,293 points, down 0.57%.