Jyothy Labs' Q4 net profit dips 2.4 pc as rising costs offset revenue growth

IANS May 12, 2025 265 views

Jyothy Labs experienced a modest 2.4% decline in net profits during Q4 FY25, primarily due to increased operational expenses. The company's revenue grew marginally by just over 1%, reaching Rs 666.96 crore, while costs across raw materials, employee benefits, and finance charges continued to climb. Despite the challenging financial landscape, the company maintained resilience and recommended a final dividend of Rs 3.50 per equity share. The results highlight the ongoing pressures faced by FMCG companies in managing input costs and maintaining profitability.

"Despite marginal revenue increase, higher expenses weighed on bottom line" - Financial Analyst Report
Mumbai, May 12: Homegrown FMCG player Jyothy Labs on Monday reported a 2.4 per cent dip in consolidated net profit for the quarter ended March 2025 (Q4 FY25), as rising input and operating costs outpaced revenue gains.

Key Points

1

Consolidated net profit drops to Rs 76.25 crore

2

Revenue marginally increases to Rs 666.96 crore

3

Material costs surge to Rs 311.71 crore

4

Employee expenses rise 7.89 percent

The company posted a net profit of Rs 76.25 crore, down from Rs 78.15 crore in the same quarter last fiscal (Q4 FY24), according to its stock exchange filing.

Despite a marginal revenue increase of just over 1 per cent from Rs 659.99 crore in Q4 FY24 to Rs 666.96 crore in Q4 FY25 -- higher expenses across raw materials, employee costs, finance charges, and depreciation weighed on the bottom line.

Costs of material consumed surged to Rs 311.71 crore, up from Rs 295.63 crore in the year-ago period.

For the full financial year FY25, material costs stood at Rs 1359.66 crore, compared to Rs 1242.60 crore in FY24.

Employee benefits expense rose to Rs 78.28 crore in Q4, from Rs 72.56 crore in Q4 FY24 -- an increase of 7.89 per cent.

Finance cost climbed 31.75 per cent to Rs 1.66 crore, compared to Rs 1.26 crore a year earlier.

Depreciation and amortisation expenses also rose by 13.14 per cent, reaching Rs 14.55 crore from Rs 12.86 crore.

In contrast, advertisement and sales promotion expenses provided some relief, declining 10.61 per cent to Rs 53.41 crore, down from Rs 59.75 crore last financial year.

Still, total expenses in Q4 increased slightly by 0.97 per cent, reaching Rs 571.23 crore, up from Rs 565.73 crore.

The company also booked a loss of Rs 4.30 crore on a consolidated basis under ‘Exceptional Items,’ stemming from the sale of its entire equity stake in Jyothy Kallol Bangladesh Limited for Rs 2.10 crore.

The standalone loss was Rs 3.70 crore, the company said in its exchange filing.

Jyothy Labs’ board recommended a final dividend of Rs 3.50 per equity share for FY25. The AGM date and record date for dividend eligibility will be announced separately.

Reader Comments

R
Rahul K.
Not surprising given the inflation in raw material costs across industries. Many FMCG companies are facing similar pressures. At least they maintained revenue growth - that shows brand strength. Hope they can optimize costs better next quarter.
P
Priya M.
As a regular user of Jyothy's Ujala fabric whitener, I'm concerned if they'll increase prices now. The 7.89% rise in employee costs seems high compared to revenue growth. Maybe they need to relook at operational efficiency? 🤔
A
Arjun S.
Interesting that they reduced ad spend by 10%+ but still maintained revenue. Shows their brands like Margo and Exo have strong recall. The Bangladesh exit seems strategic - better to focus on Indian market where they have stronger presence.
N
Neha T.
The dividend announcement is positive for shareholders. ₹3.50 per share is decent considering the profit dip. Shows management's confidence in future performance. Hope they can tackle the material cost inflation better in FY26.
S
Sanjay P.
Material costs up nearly 10% year-on-year is worrying. Many Indian FMCG companies need to find local alternatives to imported raw materials to reduce costs. Make in India should apply to ingredients too! 🇮🇳
K
Kavita R.
The exceptional loss from Bangladesh operations shows how tough it is for Indian brands to expand in neighboring markets. Maybe they should focus on rural penetration in India first - there's still huge potential here.

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Jyothy Labs FMCG Financial Results Q4 Performance Stock Market Corporate Earnings