Jyothy Labs (532926) Q4 15/16 earnings summary

Executive summary

• FY16 consolidated net sales rose 9.3% YoY to ₹1,644.73 crore; operating EBITDA increased 24% to ₹237.6 crore and PAT grew 30.4% to ₹157.95 crore.

• Powerbrands generated 86.9% of revenue and grew sales 10.3%; volume growth was 9.3%.

• Growth came amid subdued rural demand linked to deficient rainfall; lower oil prices and manufacturing automation helped offset input-cost and operating pressures.

Financial highlights

• Consolidated net sales were ₹1,644.73 crore, up 9.26% YoY; standalone net sales were ₹1,573.51 crore versus ₹1,428.27 crore.

• Consolidated EBITDA rose to ₹230.35 crore from ₹168.64 crore; PBT was ₹197.26 crore and PAT ₹157.96 crore, up 30.4% YoY.

• Standalone PBT increased 37.1% to ₹201.41 crore; PAT was ₹162.36 crore versus ₹142.79 crore, and basic EPS was ₹8.97 versus ₹7.89.

• Consolidated gross sales, including excise duty, reached ₹1,660.85 crore, up 9.56% YoY; sales growth was reported across South and non-South markets.

• Consolidated operating cash flow was ₹191.47 crore; cash and cash equivalents at year-end were ₹106.?? crore?

Outlook and guidance

• Growth priorities include rural-market penetration, wider distribution, targeted communication, product innovation and relevant extensions such as Pril dishwash bar and Ujala detergent powder.

• Management expected rural consumption to turn around based on the 2016 monsoon forecast; smaller towns, premiumisation and distribution expansion were identified as growth opportunities.

• SAP S/4HANA was planned to cover critical business processes and was expected to become operational from April 2017.