India's Amrutanjan Health Care Q2 profit slides as pandemic demand wanes

Amrutanjan Health Care

04/11/2022 12:35

BENGALURU, Nov 4 (Reuters) - India's Amrutanjan Health
Care  AJAN.NS  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)
 (Reporting by Yagnoseni Das in Bengaluru; Editing by Savio
D'Souza)
 ((Yagnoseni.Das@thomsonreuters.com;Mobile: +91 6001289066))