Jyothy Labs Q3 net profit rises 34.9% to Rs 90.9 crore

Jyothy Labs reported their Q3FY24 results.

Jyothy Labs on January 31 reported a consolidated net profit of Rs 90.9 crore for the December quarter of FY24, growing 34.9 percent from the year-ago period.

The company's revenue came in at Rs 677.5 crore, up 10.6 percent from Rs 612.7 crore in the year-ago quarter, the company said in a regulatory filing on January 31.

Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 118.6 crore growing by 40.6 percent. EBIDTA margin was at 17.5 percent from 13.8 percent YoY. One basis point is one-hundredth of a percentage point.

In general, the demand landscape has been varied. Elevated inflation has led to a reduction in consumer spending, intensifying competition and emphasizing the importance of volume growth, the company said in a press release.

The recovery in demand in rural India has been slow to gain momentum. While input prices have stabilized, this has contributed to maintaining margins, allowing for increased advertising and promotional spending to expand market share across our product range.

The company said ongoing investments in digital and environmental, social, and governance (ESG) initiatives underscore our commitment to sustained and responsible growth.

Fabric Care

Sales of Fabric Care products, including Fabric Whitener, Enhancer, Bar Soap, Detergent Powder, and Liquid Detergent, grew by 11.9 percent in Q3FY24. The segment saw strong growth in both post-wash and main-wash brands, particularly in the fast-growing liquid detergent category. The mid-price detergent powder segment also experienced increased demand, supported by targeted consumer activations and enhanced digital brand awareness.

Dishwashing

Dishwashing sales increased by 6.7 percent in Q3FY24, driven by initiatives to strengthen brands and prepare for the future. Focus remains on expanding Loyalty Usage Penetration (LUP) and leveraging offline and online channels to boost premium SKU sales.

Personal Care

Sales in the Personal Care category, including Body Soap, Hand Wash, and Toothpaste, surged by 22.3 percent in Q3FY24. The Margo soap portfolio, especially the Neem-based and new variants, gained consumer acceptance. Brand investments across various channels and a strong focus on distribution contribute to this growth.

Household Insecticides

Household Insecticides sales grew by 5.4 percent in Q3FY24, with a focus on promoting the liquid format and highlighting the unique automatic feature of the machines in brand communication. Despite category challenges, the company remains committed to driving growth in this segment.

"Consumer demand has been mixed with rural growth yet to pick up momentum. We strive towards volume led growth, strengthen our brands market share and achieve higher scale of business operations for sustainable long term value creation for all stakeholders”. said M R Jyothy, Managing Director.

On January 31, shares of Jyothy Labs was trading at 2.80 percent lower at Rs 520.45 on BSE at 13.27 pm.