MOSL: JYOTHY LABORATORIES (Neutral)-Subdued performance-Household Insecticides declines again
​Jyothy Laboratories: Subdued performance; Household Insecticides declines again
(jyl IN, Mkt Cap USD1.1b, CMP INR378, TP INR390, 3.2% Upside, Neutral)
- Consolidated net sales were up 4.1% YoY to INR4.5b (est. of +9.6% YoY to INR3.76b). Overall volumes grew 5.1% YoY (ex-HI volumes rose 9.7%). Power brand sales increased 2.6% YoY, with 4.1% volume growth. EBITDA declined 3.5% YoY to INR606m (est. of +21% to INR765m). PAT grew 778.6% YoY to INR1.1b (est. of +341.4%), led by benefit recognized on account of deferred tax assets/MAT credit on brought forward losses due to the merger of Jyothy Consumer Products Marketing with the company.
- Consolidated gross margin contracted 180bp YoY to 43.9% (est. of 43.1%). EBITDA margin shrunk 110bp to 13.6% (est. of 14.1%).
- Segmental performance: Fabric Care grew by 8.4% YoY, Dishwashing by 4.2%, Personal Care by 22.5%, while Mosquito Repellent declined by 6.5%. Among the major brands, Ujala posted 9.8% growth, Exo/Margo/Pril grew 3.3%/19.3%/2.3%, while Maxo/Henko declined 6.5%/2.9% YoY.
- FY17 performance: Sales, EBITDA and adj. PAT grew 5.7%, 14.6% and 176.6%, respectively. EBITDA margin expanded 110bp YoY to 15.1%.
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.
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