Jyothy Laboratories Q2 net profit dips 19%

Consumer goods firm Jyothy Laboratories today posted 18.80% decline in net profit for the quarter ended September 30, 2011 at Rs 12.48 crore.

The company's net profit for the three months ended September 30, 2010, stood at Rs 15.37 crore, it said in a filing to the BSE.

Jyothy Laboratories' net sales for the second quarter ended September 30, 2010, increased 6.78% to Rs 154.64 crore against Rs 144.82 crore in the corresponding quarter of last fiscal.

"This quarter is an outcome of tough period for Jyothy with multi-fold challenges like restructuring the distribution, alignment with Henkel distribution model, shifting to no credit policy, manoeuvring increasing costs, high inflation, task of turning around Henkel operations, etc," company's Chairman and Managing Director M P Ramachandran said.

"We are satisfied with the positive result. We are confident that these tough measures taken to improve the efficiency at all the levels will pave the way for a sustained long term revenue and profit growth both at Jyothy and Henkel," he said in a statement.

Henkel India (HIL), a subsidiary of Jyothy Laboratories, posted net loss of Rs 2.76 crore for the quarter ended September 30, 2011 as against Rs 14.82 crore in the same period last year.

Henkel's net sales during the quarter under review declined 20.62% to Rs 107.46 crore as against Rs 135.38 crore during the quarter ended September 30, 2010.

Shares of Jyothy Laboratories' closed up 11.82% at Rs 150.85 on the BSE.

Henkel India's shares settled at Rs 29.85 apiece, down 1.32% from the last close on the BSE.