Stove Kraft's profits plunge 66% this quarter: Here's why
Stove Kraft, the company behind the Pigeon brand, saw its net profit drop by nearly 66% this quarter—down to ₹4.15 crore from ₹12.14 crore last year.
The company blames weak demand, higher costs from new labor laws, and losses from currency fluctuations.
One-time expenses and muted demand hit profits
Revenue also slipped 6.4% to ₹378.4 crore amid muted demand in the consumer durables segment.
Profits took another hit from one-time expenses like gratuity payouts and foreign exchange losses.
Pressure cookers and small appliances made up just 30% of sales this quarter.
On the bright side, revenue is up over 9 months
Even with these setbacks, Stove Kraft managed a 4.9% revenue bump over nine months, reaching ₹1,192.9 crore—and improved its gross margins too.
The Pigeon brand keeps growing at about 10% yearly, and the company opened 17 new stores recently (now at 313 locations), aiming for 500 exclusive stores by 2027.