Jyothy Labs (532926) Q4 17/18 earnings summary

Executive summary

• FY17-18 consolidated revenue was ₹1,763.8 Cr; GST-comparable growth was 6.5%, with quarterly revenue growth recovering to 9.6% in Q2, 15.9% in Q3 and 17.2% in Q4.

• Consolidated PAT fell 12.4% to ₹178.9 Cr, primarily due to a prior-year ₹65 Cr tax reversal benefit; EBITDA rose 5.4% on GST-comparable sales.

• Recovery followed GST-related Q1 disruption, supported by supply-chain readiness, brand campaigns, innovations and new manufacturing capacity.

Financial highlights

• Consolidated revenue from operations: ₹1,763.8 Cr, up 0.8% reported and 6.5% on GST-adjusted prior-year sales.

• Consolidated EBITDA: ₹270.8 Cr, up 5.4%; PAT: ₹178.9 Cr, down 12.4% YoY following the prior-year ₹65 Cr tax reversal benefit.

• Standalone revenue from operations rose 1.15% to ₹1,717.6 Cr; PBT increased 25.62% to ₹208.5 Cr and PAT was ₹160.5 Cr.

• Consolidated operating cash flow was ₹243.5 Cr; year-end cash and cash equivalents were ₹62.9 Cr.

Outlook and guidance

• Management expected strong rebound as pent-up demand followed initial GST disruption; strong portfolio, distribution, consumer connect and innovation were cited as growth drivers.

• FMCG industry outlook pointed to double-digit growth over the next few years; rural consumption was expected to accelerate, supported by normal monsoon and government initiatives.

• Segment priorities include extending Ujala Crisp & Shine to new geographies, expanding Margo in non-traditional markets, strengthening Exo and Pril propositions, and growing Maxo share.

• Fabric Spa planned franchise-led expansion in metro cities; new outlets and service differentiation were intended to scale the laundry business.