Shares of Jyothy Labs Limited jumped more than 6 percent after the FMCG firm on July 25 reported a 5.7 percent rise in net profit in the first quarter of FY25.
At 11.58 am, the stock was trading at Rs 540.5 on National Stock Exchange (NSE) , up 6.33 percent from the previous high. The share opened at Rs 507 and touched a day's high of Rs 547.7.
The FMCG company reported a net profit of Rs 101.7 crore in the June quarter against Rs 96.3 crore in the year-ago period.
In the March quarter, the net profit came in at Rs 78.16 crore, the firm said in an exchange filing.
The company reported an 8 percent year-on-year increase in revenue at Rs 742 crore. In the previous quarter, revenue was at Rs 660 crore.
The firm said demand is expected to accelerate with normal monsoon. Rural demand pick-up is key for positive momentum.
It also highlighted sharper focus on rural distribution, innovation, introduction of SKUs to cater to specific consumer segments and ecommerce platform.
"Our operating performance has been encouraging. We are focused on deepening our consumer connect to reach out effectively to the last-mile of our country, with our wide and differentiated product portfolio," chairperson and managing director MR Jyothy said.
In addition to direct distribution expansion and augmentation of manufacturing capacity, the company continues to boost A&P spends to enhance brand visibility," the CMD said.
Q1 earnings highlights
-Volume growth: 10.8 percent
-Gross Margin at 51.3 percent against 47.9 percent in the year-ago period
-A&P spend at 61.6 crore (8.3 percent of net sales) versus Rs 50.4 crore (7.3 percent of net sales) last year, an increase of y 22.1 percent
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