Jyothy Labs (532926) Q4 18/19 earnings summary

Executive summary

• FY19 standalone GST-adjusted net sales rose 9.3% to ₹1,768.9cr on volume growth of 7.3%; reported operating revenue increased 7.6% to the same amount.

• Operating EBITDA grew 8.2% to ₹285.8cr, with a 16.2% margin despite input-cost pressure; PAT rose 20.3% to ₹193.2cr.

• Consolidated revenue increased 7.3% to ₹1,813.6cr and PAT rose 10.5% to ₹197.6cr.

• Double-digit growth in Henko and Pril, product launches and brand restaging supported performance; FY20 priorities include profitable launches, quality and stronger distribution.

Financial highlights

• Standalone EBIT was ₹227.5cr versus ₹207.5cr; net profit margin improved to 10.9%, with PAT growth aided by lower finance costs and tax expense.

• Finance costs fell 34.3% to ₹27.8cr; tax expense declined 28.4% to ₹34.3cr.

• Standalone operating cash flow was ₹304.9cr versus ₹251.0cr; cash and cash equivalents closed at ₹68.4cr.

• Consolidated profit before tax was ₹243.0cr, up 1.0%; profit attributable to equity holders was ₹205.1cr versus ₹186.1cr.

Outlook and guidance

• FY20 outlook remained positive, supported by expected rural income growth and demand in rural areas and small towns; no specific financial growth target was stated.

• Priorities include profitable, differentiated launches, quality improvement, targeted promotion, supply-chain optimisation and wider district-level distribution.

• Automated replenishment, piloted across two products, was planned for rollout across the product range in FY20.

• Fabric-care outlook included wider reach for Ujala Crisp & Shine Gold Collection and smaller Henko pack sizes; Exo and Pril were expected to gain traction through innovation.