India's IFB Industries posts 2% drop in profit as costs climb

BENGALURU (Reuters) - India's IFB Industries Ltd posted a 2% fall in its second-quarter profit on Friday, as expenses soared and took the shine off higher sales of its home appliances.

Consumer goods makers globally have seen their bottomline take a knock from higher commodity prices, with the COVID-19 pandemic and the Russia-Ukraine war leading to a rise in input costs.

For Kolkata, West Bengal-based IFB, which makes several home appliances including washing machines and air conditioners, total expenses rose 13.3% to 10.85 billion rupees.

Net profit fell to 241.2 million rupees ($2.93 million) in the three months ended Sept. 30, from 245.9 million rupees a year ago.

However, analysts have said the recent fall in commodity prices would start helping companies from the December quarter onwards.

The company's total revenue from operations rose 13% to 11.18 billion rupees. Its home appliances division, its largest, recorded a 9.9% increase as high-income urban households continue to splurge on white goods.

($1 = 82.34 Indian rupees)

(Reporting by by Ashna Teresa Britto and Navamya Ganesh Acharya in Bengaluru; Editing by Subhranshu Sahu and Shailesh Kuber)