MOSL: JYOTHY LABORATORIES (Neutral)-Revenue in line-operating performance below estimates
JYOTHY LABORATORIES: Revenue in line; operating performance below estimates
(JYL IN, Mkt Cap USD0.9b, CMP INR179, TP INR176, 2% Downside, Neutral)
- 2QFY20 reported standalone net sales were up 8.5% YoY to INR4.6b (v/s est. INR4.6b). EBITDA grew 8.1% YoY to INR791m (v/s est. INR836m) while Adj. PAT grew 17.4% YoY to INR532m (v/s est. INR518m).
- Segmental sales: Fabric care/Dishwashing/Personal care sales grew 13.1%/8.6%/6.9% while Household Insecticides (HI) sales were down 1.2% YoY.
- Gross margins contracted 30bp YoY to 45.6% in 2QFY20. As % of sales, higher ad spends (+70bp YoY to 5.9%) and increase in staff cost (+40bp YoY to 11.2%) were offset by lower other expenses (-130bp YoY to 11.5%). Thus, EBITDA margin contracted 10bp YoY to 17% (v/s est. of 18.1%).
Jyothy Labs Limited, formerly Jyothy Laboratories Limited, is a multi-brand, multi-product company focused on fast-moving consumer goods industry. The Company is principally engaged in manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito repellents, scrubber, bodycare and incense sticks. It operates through three segments: Soaps and Detergents, which includes fabric whiteners, fabric detergents, dish wash bar and soaps, including ayurvedic soaps; Home Care products, which includes incense sticks, scrubber, dhoop and mosquito repellents, and Others, which includes bodycare, tea and coffee. It products are under various brands, which include Henko, Mr. White, Ujala, More light, Chek, Pril, Exo, Maxo, Margo, Fa, Neem, Fabric Spa, Snoways, Busy easy and Wardrobe. Its subsidiaries include Jyothy Consumer Products Marketing Limited, Four Seasons Drycleaning Company Private Limited, Snoways Laundrers & Drycleaners Private Limited and Jyothy Fabricare Services Limited.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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