Eureka Forbes Q1 profit rises 47% as revenue grows 15%; margins narrow

Eureka Forbes Ltd

. reported a 47.3% year-on-year increase in consolidated net profit for the quarter ended June 30, helped by strong revenue growth even as operating margins narrowed slightly.

The health and hygiene products company posted a net profit of ₹57 crore for the first quarter, compared with ₹39 crore in the year-ago period.

Revenue from operations rose 15.2% to ₹700.4 crore from ₹607.9 crore a year earlier.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 12.9% to ₹69.3 crore from ₹61.4 crore in the corresponding quarter last year.

Operating margins, however, came under slight pressure. EBITDA margin narrowed 20 basis points to 9.91% from 10.11% a year earlier.

The quarter included an exceptional gain related to the reversal of gratuity expenses following amendments to the company's gratuity scheme.

Eureka Forbes continues to report its health and hygiene products business as a single operating segment.

The company's board approved the unaudited standalone and consolidated financial results for the quarter ended June 30 at a meeting on August 12.

Shares of Eureka Forbes were trading 0.1% higher at ₹452.65 on the National Stock Exchange at 3:29 p.m. on Wednesday.