Jyothy Labs shares spike 19% as Q1 profit doubles to Rs 96 crore. Key details

Shares of Jyothy Labs Limited surged 19 per cent to hit a fresh record high in Tuesday's session after the manufacturer of fabric care, dish wash, household insecticide and personal care products reported doubling of June quarter profits.

Jyothy Labs said its profit for the quarter surged 101.70 per cent YoY to Rs 96.30 crore from Rs 47.70 crore in the year-ago quarter. Net sales jumped 15.1 per cent YoY to 687 crore. Ebitda for the quarter soared 96.30 per cent to R 117.40 crore from Rs 60 crore YoY, with the margin coming in at 17.1 per cent against 10 per cent YoY, thanks to moderating input costs. Jyothy Labs said it observed a relatively stable demand across product portfolios.

"We have delivered a consistent double digit revenue growth for the last few years and rise in our brands market share. This is coupled with healthy cash position empowering our future growth. With rising disposable income of discerning and aspirational consumers, our efforts are towards increasing engagement with consumers, expanding our sales and distribution network, focus on relevant innovations thereby strengthening our core business," the company said in a  BSE filing.

Following the development, the stock spiked 18.69 per cent to hit a record high of Rs 287.55 on BSE.

In the Fabric Care segment, sales increased 18.1 per cent as expanded distribution helped Jyothy accelerate sales of detergent powder brands on a pan India basis, Jyothy Labs said.  The Dishwashing segment sales rose 10.6 per cent as "both Exo and Pril has been able to establish itself as the clear brand of choice among consumers. Further, we are leveraging on the rural growth in the bars category and focused on consumers, seeking larger packs in dish wash liquid category," the company said.

Sales for household insecticides rose 10.1 per cent. This category was impacted by  seasonal variations and illegal incense sticks impacting the demand. Meanwhile, the Personal Care segment saw 21.1 per cent rise in YoY sales.

MD MR Jyothy said his company's operating performance was encouraging.

"At the core of our operations, sustainability initiatives have been at forefront to drive our long term growth and profitability. At Jyothy Labs, we aim for our business model to deliver consistent revenue growth with focus on strengthening distribution, relevant innovations, increase in marketing investment and optimise cost structures."

Jyothy said the company has consistently delivered double digit revenue growth for the last few years and expanding  profitability metrices. "We strive to build scale with relentless execution and grow our brands market share,” he said.

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