India`s Amrutanjan Health Care Q2 profit slides as pandemic demand wanes
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India's Amrutanjan Health Care reported a 35.7% slide in second-quarter profit on Friday, hurt by a rise in expenses and weakening sales of its wellness products as the pandemic's effects wane.
The company's profit fell to 127.7 million Indian rupees ($1.6 million) in the July-September quarter, from 198.5 million rupees a year earlier.
Demand for healthcare products was tapering off the highs of the past two years, as the number of infections comes off peaks, the Chennai-based company said last quarter.
Revenue from the company's over-the-counter (OTC) business, which includes pain relief products such as the Amrutanjan pain balm and Relief Cold Rub, slipped 0.2% to 1 billion rupees, accounting for 94% of total revenue.
Total revenue from operations rose 0.3% to 1.11 billion rupees, said the company, which also sells beverages such as the Fruitnik drinks.
Amrutanjan's cost of raw materials and components consumed fell 6.2% in the quarter. However, total expenses increased 9.1%, ultimately weighing on margins.
Profit before tax at the mainstay OTC segment fell 27% from a year ago, while the beverages segment, already under pressure, swung to a loss in the latest quarter from a year-ago profit.
The company's stock closed up 1.7% on Friday, cutting its losses for the year to about 20%. ($1 = 82.2830 Indian rupees)
