Eureka Forbes Q1 Sees Profit Surge by 26.4%, Revenue Grows to Rs 533.37cr

Eureka Forbes Ltd, a health and hygiene products manufacturer, announced a 26.37% rise in its consolidated net profit for the first quarter ending June, reaching Rs 32.15 crore. This is an increase from the Rs 25.44 crore reported in the same period last year, as per a regulatory filing by the company, now under the control of private equity firm Advent International.

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The company's revenue from operations saw a 9.61% growth, amounting to Rs 553.37 crore during the reviewed quarter, compared to Rs 504.81 crore in the corresponding quarter of the previous year. Total expenses for Eureka Forbes also rose by 8.77%, reaching Rs 512.53 crore in the June quarter.

Revenue and Profitability Growth

Eureka Forbes' total income increased by 9.64%, totalling Rs 555.71 crore for the June quarter. Commenting on these results, MD and CEO Pratik Pota stated: "Despite a muted demand environment, we are pleased to report the third successive quarter of double-digit growth in our continuing business."

Pota highlighted that growth was widespread across both Water Purifier and Vacuum Cleaner categories, as well as the service business. He noted that premium products were key drivers of this growth.

Improved EBITDA Margins

The company also made strides in profitability, with EBITDA margins for Q1 reaching a lifetime high of 11.5%, an improvement of 166 basis points year-on-year. Pota added: "We made progress on the profitability front too with EBITDA margins for Q1 reaching a lifetime high of 11.5%, an improvement of 166bps year on year."

Shares of Eureka Forbes Ltd ended at Rs 468.30 on BSE on Thursday, marking a decline of 1.75% from the previous close.

The company's performance reflects its ability to navigate a challenging market environment while achieving significant growth and improved profitability metrics.