Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Jyothy Lab - Q1FY22 First Cut - ICICI Direct

Posted On: 2021-08-01 05:33:34 (Time Zone: UTC)

(CMP - Rs. 170, MCap - Rs. 6263 crore)

Jyothy Lab posted dismal set of numbers with 16.9% dip in operating profits & 20.5% decline in net profit.

Q1FY22 Earnings Summary

- Standalone revenue grew by 21.8% to Rs. 521.9 crore on the back of low base quarter. The company saw 4.1% growth in base quarter impacted by Covid-19 induced lockdown. Dishwashing segment witnessed 22% sales growth despite strong growth in base quarter. Both the brands in dishwashing categories i.e. Pril & Exo are growing on a sustainable pace. Fabric care segment saw 27.4% growth on the back of extremely weak quarter. Detergents & Fabric whiteners category has been impacted by lack of mobility due to pandemic disruptions. Household Insecticide (HI) & Personal care segment grew by 12.7% & 13.5% respectively

- With the surge in commodity prices (Palm Oil, Crude based packaging cost), gross margins have contracted by 281 bps. Marketing spends increased by 360 bps given the company cut down the ad-spends in base quarter. Employee & Overhead spends largely remained same. Operating profit declined by 16.9% to Rs. 65 crore & operating margins contracted by 580 bps to 12.5%

- Net profit de-grew by 20.5% to Rs. 40.1 crore with similar dip in operating profit

Jyothy lab is present in fabric wash, dishwashing, Personal care & HI categories, where it is facing direct competition with HUL, Godrej Consumer (behemoth in respective categories). We believe the Jyothy lab would only be able to grow at moderate pace with the limited possibility of margin expansion. Moreover, its ad-spends is also lower compared to the industry, which would be drag in expanding in its Non-core markets (other than Kerala & TN). The sharp dip in operating margins during the quarter also proves that sensitivity to commodity price is higher compared to the peers due to its lack of pricing power. We remain cautious on the growth & margins expansion prospects.

We will be coming out with detailed update after the conference call with the management.

Shares of JYOTHY LABS LTD. was last trading in BSE at Rs. 170.15 as compared to the previous close of Rs. 171.65. The total number of shares traded during the day was 49536 in over 1426 trades.

The stock hit an intraday high of Rs. 177.4 and intraday low of 169.65. The net turnover during the day was Rs. 8595515.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Automobile Sector - Monthly Quick View - Aug'21 - Mixed Performance across Segments - Reliance Securities

Axis Securities initiating coverage on ICICI Securities

Company Update - Minda Corporation - Q1FY22 - ICICI Direct

Quant Pick - PVR Ltd - ICICI Direct

Quant Pick - ONGC - ICICI Direct

Peak in the headline wholesale inflation is behind us - WPI August 2021 - Acuité Ratings

Sansera Engineering - IPO - Strong Outlook with Steady Cash Flow - Reliance Securities

APL Apollo Tubes - Journey from a semi-commodity player to a branded one - HDFC Securities

Nazara Technologies Ltd - Upbeat in medium-term, Uncertain over Long-term - YES Securities

IPO Review - Sansera Engineering Ltd - ICICI Direct

Overall index is still 0.3% lower than the pre-pandemic levels - IIP July 2021

YES SECURITIES on Monthly General Insurance & Mutual Funds Data

India urban logistics spaces expected to cross 7 million sq. ft by 2022: JLL

Neogen Chemicals - Breaking into the next orbit with a bang - HDFC Securities

Gladiator Stocks - Bharti Airtel Ltd - ICICI Direct

Gladiator Stocks - V-Guard - ICICI Direct

Balkrishna Industries - Industry export growth accelerates - ICICI Securities

HDFC Life Insurance - Exide Life Acquisition - Maintain ADD - YES Securities

Gladiator Stocks - Grindwell Norton - ICICI Direct

Gladiator Stocks - Godrej Properties - ICICI Direct

Monthly Auto Volumes - August 2021 - ICICI Direct

Stock Tales - Easy Trip Planners - ICICI Direct

IPO Review - Vijaya Diagnostic Centre Ltd - ICICI Direct

AU Small Finance Bank - Attrition at top level remains key challenge; business momentum sustained in Jul/Aug'21 - ICICI Securities

Gladiator Stocks - State Bank of India - ICICI Direct

Gladiator Stocks - PNC Infratech - ICICI Direct

Vijaya Diagnostic Centre Ltd - IPO Note - YES Securities

Consumer Durables Sector - Lockdown mars performance yet again - Institutional Research Desk at HDFC Securities

75% of the employees today want to be in office at least once a week as compared to 52% in October 2020: JLL

Gladiator Stocks - Safari Industries - ICICI Direct

Gladiator Stocks - Interglobe Aviation - ICICI Direct

IPO Review - Ami Organics Ltd - ICICI Direct

Q1FY22 GDP - 31st Aug 2021 - Acuité Ratings & Research

Avanti Feeds - Higher input prices hurt margins - ICICI Securities

Company Update - Restructuring - Aarti Industries - ICICI Direct

Q1FY22 Company Update - MM Forgings - ICICI Direct

Company Update - Arvind Fashions - ICICI Direct

Zomato - Can margins and multiples surprise? - ICICI Securities

Ujjivan Small Finance Bank - Top management change and lumpy provisioning concern to weigh on valuation in near term - ICICI Securities

Bharat Dynamics - Guided missile systems to drive orderbook and profit growth - ICICI Securities

Economy - Continued accommodation necessary despite inflationary risks: MPC minutes - ICICI Securities

InterGlobe Aviation - Annual report analysis: Liquidity management remains the mainstay in anticipation of traffic recovery - ICICI Securities

General insurance - Health remains dominant growth driver; Strong all-round performance by Bajaj Allianz - ICICI Securities

Earnings Wrap Q1FY22: Resilient earnings, limited impact of second Covid wave - ICICI Direct

Fine Organic Industries Results Review - In-line performance - HDFC Securities

Power Plus Sector Update - July witnessed strong ~10% generation growth - HDFC Securities

Information Technology Sector Update - 'Hit Refresh' - HDFC Securities

Maintain ADD on JK Cement - Healthy performance - HDFC Securities

Maintain BUY on Star Cement - Margin recovers on pricing gain - HDFC Securities

Maintain BUY on Sadbhav Engineering - Long road to recovery - HDFC Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020