The company attributed the volume growth to calibrated grammage actions and a gradual recovery in consumption patterns. “Additionally, GST rate reduction helped stimulate demand, particularly in the personal care segment from the third quarter onwards,” the company said in its exchange filing.
For the March quarter, the company reported a decline in its profitability, even as revenue growth remained steady.
The company’s net profit fell 12.3% year-on-year to ₹68 crore, from ₹77 crore in the same period last year. Revenue rose 7.7% to ₹717.4 crore from ₹666 crore a year ago.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 14% YoY to ₹97 crore from ₹112.3 crore, while operating margin contracted to 13.5% from 16.9% in the year-ago quarter.
The management attributed the margin compression to lower sales realisations and inflation in input prices.
Here’s how Jyothy Labs’ various business segments fared:
Fabric Care business, which includes fabric whitener, fabric enhancer, fabric conditioner, bar soap, detergent powder and liquid detergent, saw value growth of 14.4% and volume growth of 17.8% during the quarter.
Liquid detergents under Ujala, Henko, Mr. White and Morelight saw strong growth, while pricing remains competitive in the market.
The Dishwashing segment, which includes dish wash bar, liquid, gel, powder and scrubbers, saw flat value growth and 5% volume growth during the quarter. Liquids continue to outpace bars.
Personal Care business, which includes body soap, handwash and toothpaste, saw 20.1% value growth and 20.8% volume growth during the quarter. The company also relaunched Margo during the quarter and the full effect of GST rate cuts were seen in the quarter gone by.
The Household Insecticides segment saw 3% value growth during the quarter, driven by strong volume growth in liquid vaporizers.
“Calibrated pricing actions have been taken, though the full impact is yet to flow through. As a result, margins may remain under pressure in the near term,” MR Jyothy, the Chairperson and MD of Jyothy Labs was quoted as saying. She added that the company remains cautious on the external environment but the business fundamentals remain strong.
Shares of Jyothy Laboratories, which fell over 2% after the results announcement, are now trading 2.7% higher at ₹272.25. The stock has risen 30% in the last one month.
