Six month after its acquiring Henkel Ltd, Jyothy Laboratories is likely to combine operations of the Indian subsidiary of the German multinational by April next year. Currently, Henkel is an 84 per cent subsidiary of the Mumbai-based FMCG major.
By combining operations, Jyothy hopes to harness synergies better and work optimally, its deputy managing director Ulhas Kamath said on Wednesday. He declined to indicate the time of the merger of the two firms. “The intent is there,” he said. “That is a call that the board will take.”
At the moment, the firm is working on cleaning up loss-making Henkel’s books, ensuring at the same time that its own financials are not severely impacted.
While it did see its July-September net profit come down by nearly 19 per cent to Rs 12.48 crore, the net sales were up seven per cent to Rs 154 crore for the quater.
The decline in bottomline, Kamath said, was on account of input cost pressures and one-time expenses incurred due to restructuring of operations on the distribution front. “We have moved Henkel’s distribution system from a three-tier model to a two-tier one. In the process we have had to take back goods. That was an expense we incurred,” he added.
Jyothy’s earnings before interest depreciation tax and amortisation (EBIDTA) for the quarter stood at Rs 22.53 crore, as against Rs 20.87 crore reported last year. Its earnings per share were predictably down to Rs 1.55 as against Rs 2.01 reported a year ago.
Among measures for the future, Jyothy hopes to take up prices of Henkel products soon. It took up prices of its own products by seven per cent at the end of the second quarter. “This,” said Kamath, “is likely to reflect in the forthcoming quarters.”
Henkel India posts net loss of Rs 2.76 crore. Henkel India Ltd, acquired by Jyothi Laboratories Ltd in May this year, has posted a net loss of Rs 2.76 crore for the quarter ended September 30. The net loss for the same period of last fiscal was of Rs 14.82 crore.
The total income stood at Rs 107.47 crore for the quarter, while it was at Rs 135.54 crore in the corresponding period of previous fiscal,a dip of 20.71 per cent comparitively.
In the quarter ended June, 2011, the company has sold off its SKP Hair-care division and the figures of the division does not include in the results of quarter ended September 2011, it added.
“Hence the results of the September 2011 quarter are not comparable with the results of 2010 quater,” said the company in its quarterly announcement with exchanges.
