Jyothy Labs shares rise 2% after acquiring Quiclo to tap laundry services industry

Jyothy Labs shares have rallied 25 percent in the last three months.

Shares of Jyothy Labs Limited surged 2 percent to Rs 556 in the morning trade on September 20 after the company announced the acquisition of 'Quiclo', a laundry service brand owned by Smartwash Solutions Private Limited. The acquisition includes Quiclo’s software and customer database, marking a strategic move to strengthen the company's presence in the laundry service sector.

The deal, which is valued at Rs 70 lakh plus applicable taxes, is set to bolster the company’s customer base, particularly in Hyderabad, aligning with its core laundry business. Further, the company’s laundry service and dry-cleaning unit located at Hyderabad has commenced
its commercial operations, it said in a regulatory filing.

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Jyothy Labs reported a 5.7 percent rise in net profit for the first quarter of FY25, posting Rs 101.7 crore in the June quarter, compared to Rs 96.3 crore in the same period last year.

The FMCG company is optimistic about demand acceleration with a normal monsoon, noting that a rural demand pick-up will be crucial for maintaining momentum. The firm is sharpening its focus on rural distribution, and innovation, and introducing new SKUs to cater to specific consumer segments, alongside enhancing its presence on e-commerce platforms.

The management said that the operating performance has been encouraging and it is committed to deepening our consumer connection and reaching the last mile of the country with our diverse product portfolio. The company also highlighted efforts to expand direct distribution, increase manufacturing capacity, and boost advertising and promotion (A&P) spending to improve brand visibility.

At about 11:16 am, shares of the company were trading at Rs 550, higher by over a percent from the last close on the NSE. Jyothy Labs shares have rallied 25 percent in the last three months.

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