Jyothy Labs Ltd. share price target

Jyothy Labs Ltd. (Formerly known as Jyothy Laboratories Ltd.) declared its Q2FY20 results recently. The key highlights are as follows: 1. The company reported 8.5% Y-O-Y growth in net sales to `475crs. The Non-HI business grew by 10% Y-O-Y. Volume growth for the quarter was at 8.3% Y-O-Y. 2. EBIDTA expanded by 11% to `79crs Y-O-Y. Reported net profit for the quarter was at...

Fabric care, dishwashing improves; HI continues to depress Fabric care (40% of sales) witnessed growth of 13.1% YoY on account of strong performance of the Ujala brand. Ujala Supreme market share increased to 82.1% in Q2FY20 vs. 81.2% in Q4FY19 while Ujala IDD market share remained flat at 15.5% during the period. Ujala Crisp & Shine witnessed strong growth of 24.8% YoY during the quarter. The dishwash segment witnessed strong growth of 8.6% YoY on account of 9% YoY growth in Exo and Pril. HI segment declined 1.2% YoY mainly on account of...

22 October 2019 to INR4.6b (v/s est. EBITDA grew 8.1% YoY to INR791m (v/s est. INR836m) while Adj. PAT grew 17.4% YoY to INR532m (v/s est. Fabric care/Dishwashing/Personal care sales grew 13.1%/8.6%/6.9% while Household Insecticides (HI) sales were down 1.2% YoY.

1. Jyothy Labs (JLL) reported a 2.2% Y-O-Y growth in net sales to `423crs. The Non-HI business grew by 4.2% Y-O-Y. Volume growth for the quarter was at 5.6% YoY. 2. EBIDTA expanded by 16% to `65.6crs due to expansion in gross margin. Reported net...

Jyothy Laboratories Ltd (JLL) is an Indian FMCG player with products across Fabric care, Dishwashing, Mosquito repellents & Personal Care. JLL's revenue grew by a mere 2.2%YoY for Q1FY20 despite volume growth of 5.6% due to increased offers in premium brands....

Personal care shines backed by Margo's Naturals' proposition After three quarters of muted growth, JLL's strategy to focus on naturals space has started yielding results with personal care segment outperforming other segments (13.3% growth YoY) in an otherwise lacklustre market. Through its brands Margo soap, Fa, Neem toothpaste, the company has a substantial presence in the naturals' category in a few southern states and West Bengal. With Margo growing at 18% CAGR in the last few years, we believe strong growth will continue due to the structural trend of Naturals'...

Jyothy Labs Limited (JLL) registered a mixed performance in Q1FY2020, with revenue growing in low single digits (as household insecticide [HI] revenue declined by 22 %). However, operating margin (OPM) grew by 144 bps to 15.9%, mainly on account of lower other expenses, as the company shifted to Ind- AS 116. On a comparable basis, OPM was almost flat at 14.7% in Q1FY2020. The HI category will take time to revive, while the dishwashing and fabric care categories will continue to grow at a good pace, aided by new launches and a...

23 July 2019 Fabric care, Dishwashing and Personal care sales grew 5.4%, 1.1% and 13.3%, respectively, while Household Insecticides (HI) sales were down 21.6% YoY. Higher ad spends (+30bp YoY to 8.1% of sales) and staff cost (+40bp YoY to 12.2%) were offset by lower other expenses (-140bp YoY to 11.5%). Consequently, EBITDA margin expanded (1) Management expects a stable demand environment. However, competition is likely to remain intense in a deflationary commodity environment. (2) At end-FY19, management had guided for 12% top-line growth in FY20. This guidance has now been revised to 10-12%.

We met Mr. Sanjay Agarwal, CFO, Jyothy Laboratories Limited (JLL) to understand the current demand environment and the company's plan of action to revive growth in key categories such as household insecticide (HI) and fabric care. We expect JLL's consolidated revenue to grow by about 10% (management has guided for 12-14% growth) and OPM to stand at ~15% in FY2020. Dishwashing (Pril and Exo), premium detergent (Henko) and personal wash (Margo) will continue to post double-digit growth. Ujala Fabric whitener is expected to grow in single...

Gross margin contracted by 220 bps Y-O-Y led by input cost pressure. EBIDTA decreased by 6% Y-O-Y to `82.6 crs in the quarter. On EBIDTA margins front, there was 210 bps contraction largely led by employees and advertisement expenses....