Jyothy labs –
Q1 FY 25 results and concall highlights –
Sales – 742 vs 687 cr, up 8 pc – led by volume growth of 11 pc !!!
Gross margins @ 52 vs 48 pc
EBITDA – 133 vs 117 cr, up 13 pc ( margins @ 18 vs 17 pc )
PAT – 102 vs 96 cr, up 6 pc ( LY, there was an exceptional gain of 9 cr due sale of a one off property )
A&P spends @ 61 cr ( 8.3 pc of sales ) vs 50 cr ( 7.3 pc of sales )
Cash on books @ 650 cr
Company expects demand momentum to continue because of normal monsoons
Category wise growth rates –
Fabric Care – grew 8.8 pc YoY ( form 43 pc of company’s revenues )
Dish Wash – grew 7.1 pc YoY ( form 33 pc of company’s revenues )
Personal Care – grew 11 pc YoY ( form 13 pc of company’s sales )
Household Insecticides – grew 2 pc YoY ( form 7 pc of company’s sales ) – impacted by heat wave in Q1. Should do better in Q2
**Should be able to clock double digit sales growth with EBITDA > 16 pc for full FY **
Company has launched liquid detergents @ disruptive price point of Rs 70/lit in MT outlets- under the Moonlight brand. Have received encouraging response
Company has reduced its dividend payout in FY 24. Aim is to build onto their cash positions for inorganic opportunities
Exo – did very well in East India in Q1. Exo – is already very strong in the South Mkts
A lot of volume growth for the company is being driven by expansion in distribution
Most of the variants of Margo launched over the last couple of years continue to do well
Rural mkts were slow previously, but are picking up now for the last few months. With further pickup in rural demand, company should be a beneficiary
Capex for the year should be around 50-60 cr
Modern Trade + E-Comm now constitute 15 pc of company’s sales. This figure was around 10 pc, about 3 yrs back
In the Household insecticides space, company has gained mkt share by 300 BPS (YoY)- mainly on the back of Liquid Vaporisers – this is a big achievement – IMHO. Because of this, HI category’s EBIT losses have also come down. As the scale and mix of HI business improves, it should show up on company level margins in next 2-3 yrs
Similarly as the personal care business expands, it should favourably impact company level margins as its a high margin segment
Company sales mix continues to remain at 40:60 in terms of South:Rest of India ( this mix has been largely the same over last 3-4 yrs )
Company intends its personal care portfolio to contribute to a minimum of 15 pc of sales vs 13 pc currently. Company is open to inorganic route to achieve that
Company is working on organic new product development as well. Will announce it when they r ready to launch
Disc: hold a small position, not SEBI registered, not a buy/sell recommendation, biased
| Subscribe To Our Free Newsletter |
