Q1FY23 results: Tepid .
Commenting on the Results, Mr. Vikash Agarwal, Director said,
“After delivering high growth for two consecutive years and registering highest
Revenue & PAT in preceding year, our growth this quarter has been flat.
We took a calibrated price hike to bring our prices in-line with rising raw material costs, this
enabled us to sustain our gross margins.
In the first quarter devoid of any Covid related disruptions, our costs were back to pre-Covid levels. We have also invested heavily in marketing by engaging celebrity brand ambassadors and running national campaigns.
The total advertising expenditure this quarter is ~10% of the revenue visà-vis ~4% in the corresponding period. Elevated fixed costs have had a pressure on our margins on account of being not absorbed completely this quarter.
These strategic expenses, however, will be beneficial for us as we have an operational leverage in future. Further, increased administrative and manpower expenses have also not been absorbed completely due to flat revenue in the quarter.
We are happy to announce the launch of our maiden flagship store in Kolkata along with 2 EBO. Online & e-commerce are focus areas for us and we have generated ~7% of the total revenue via modern trade business. We are also seeing good traction in
the exports business which has doubled year-on-year, contributing ~6% to the total
revenue. We are focused on our long-term goal of providing the highest level of
consumer satisfaction with our bouquet of products. We have stepped up our efforts
in branding to create a formidable brand equity. We are determined to deliver strong
operational and financial performance going ahead. ”
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