Zydus Wellness net profit rises 4.75% in second qtr to Rs 137.01 cr

Zydus Wellness reported a 4.75 per cent rise in consolidated net profit to Rs 137.01 crore in the first quarter ended June 30, impacted by higher expenses and a one-time outgo for plant closure

Zydus Wellness on Friday reported a 4.75 per cent rise in consolidated net profit to Rs 137.01 crore in the first quarter ended June 30, impacted by higher expenses and a one-time outgo for plant closure.

The company had posted a consolidated profit after tax at Rs 130.8 crore in the same period last fiscal, Zydus Wellness said in a regulatory filing.

Its consolidated total income during the quarter under review stood at Rs 698.71 crore against Rs 599.97 crore in the year-ago period.

The total expenses in the first quarter rose to Rs 558.82 crore from Rs 469.17 crore in the same period last year. The cost of materials consumed stood at Rs 250.12 crore compared to Rs 149.59 crore in the same quarter a year ago, the company said.

Moreover, during the quarter, Zydus Wellness said, it incurred a one-off expenditure of Rs 2.91 crore on account of the cessation of operations at the Sitarganj plant in Uttarakhand.

In the June 2022 quarter, there was a resurgence in demand for summer-oriented brands such as Glucon-D and Nycil, leading to "a strong double-digit growth", it added.

The headwinds witnessed by the FMCG industry in FY22 are continuing into FY23. Inflation in key raw material and packing materials prices continue to impact gross margins across companies, while the rupee depreciation against the dollar is also impacting input costs, it added.

To overcome the challenges, the company said it has taken calibrated price increases in FY22. It has also undertaken cost reduction programmes, and control over discretionary spending while getting into long-term supply contracts and building up raw material inventory.