India's IFB Industries posts 2% drop in profit as costs climb

IFB Industries

28/10/2022 15:48

BENGALURU, Oct 28 (Reuters) - India's IFB Industries Ltd
 IFBI.NS  posted a 2% fall in its second-quarter profit on
Friday, as expenses soared and took the shine off higher sales
of its home appliances.
    Consumer goods makers globally have seen their bottomline
take a knock from higher commodity prices, with the COVID-19
pandemic and the Russia-Ukraine war leading to a rise in input
costs.
    For Kolkata, West Bengal-based IFB, which makes several home
appliances including washing machines and air conditioners,
total expenses rose 13.3% to 10.85 billion rupees.
    Net profit fell to 241.2 million rupees ($2.93 million) in
the three months ended Sept. 30, from 245.9 million rupees a
year ago.
    However, analysts have said the recent fall in commodity
prices would start helping companies from the December quarter
onwards.
    The company's total revenue from operations rose 13% to
11.18 billion rupees. Its home appliances division, its largest,
recorded a 9.9% increase as high-income urban households
continue to splurge on white goods.
($1 = 82.34 Indian rupees)
 (Reporting by by Ashna Teresa Britto and Navamya Ganesh Acharya
in Bengaluru; Editing by Subhranshu Sahu and Shailesh Kuber)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))