Comments
Amrutanjan Health Care Limited has initiated a forensic investigation by Deloitte Touche Tohmatsu India LLP (forensic auditors) on certain allegations made by an anonymous whistleblower on lapses by some employees.
Forensic audit
The company received an anonymous whistleblower complaint alleging lapses by some senior management employees, including undue enrichment through marketing, advertising and procurement activities, ethical concerns and conflict of interest, Amrutanjan told in a communication to the Bombay Stock Exchange (BSE).
The company shall extend its fullest cooperation and information to the forensic auditors during the process of the investigation as per applicable provisions of the law. The company shall also file the final report of forensic audit with comments of the management, if any, as per regulations, says a notification to the exchange.
The 118-year-old Amrutanjan’s current offerings are in three sub brands: Kick Out Pain for pain management, Relief for congestion management and Purity for hygiene products.
Revenue, net profit down
Net profit in the December 2022 quarter declined by nearly half to ₹10.71 crore as against ₹20.58 crore in the same quarter last year. Revenue was marginally down to ₹108.36 crore (₹123 crore).
The impact of raw material and packing material price increase was ₹6.21 crore. The key raw material prices (excluding menthol crystal price) are higher when compared to nine months ended Dec’21.
Advertisement spend for nine months ended Dec’22 was at ₹24.58 cr against ₹30.56 cr during nine months ended Dec’21. Advertisement spend for Comfy was at ₹8.48 cr for nine months ended Dec’22 against ₹15.65 cr during nine months ended Dec’21, the company said.
The company continues to see slowdown in the pain category even in the Q3. Despite these challenging times, Comfy has grown by 16 per cent; head roll growing at double digit and super stockist network has sub distributors in 1,800 towns. Comfy total distribution is at 3.61 lakh outlets.
Key priorities
The company’s key priorities going forward is to expand distribution, go global, grow E-Commerce vertical and reduce costs, the company said.
The company’s share price on the Bombay Stock Exchange ended at ₹645.35, down by ₹57.35 or 8.15 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.