Jyothy Laboratories reported mixed set of numbers (standalone) for Q3FY19; revenue and EBITDA were marginally below consensus estimates, however, PAT came in line with estimates. Revenue grew by 6.3% yoy to Rs434.3cr, ~5% below estimates. EBITDA for the quarter was up 5.2% yoy to Rs71.8cr (6.5% below estimates). The company's gross margin expanded marginally by 60bps, however, the same was offset by a similar increase in advertisement cost. Thus, the EBITDA remained flat at 16.5% (estimate of 16.8%). Lower interest cost, higher other income, and lower tax outgo led to a 29.9% jump in PAT which stood at Rs48.4cr, in line with the consensus estimate.
Dishwashing and Fabric care reported 8.7% and 5.9% yoy growth in revenue, respectively. However, the Personal care segment witnessed 6.2% yoy decline in revenue.
The Household Insecticide (HI) segment reported healthy revenue growth of 11.7% yoy, however, it was down 15.9% sequentially.
Fabric care (main wash + post wash), Dishwashing, HI, and Personal care contributed 44%, 35%, 9%, and 10% respectively, to the revenue during the quarter.
On the EBIT margin front, both Dishwashing and fabric care segments reported contraction of 232bps and 143bps to 12.9% and 19.0%, respectively. On the positive side, Personal care reported 438bps expansion in EBIT margin to 21.7%. HI reported a loss of Rs0.5cr at the EBIT level.
Advertisement expenses during the quarter as a percentage of net sales were down marginally by 56bps yoy to 5.5% of the total sales (against 6.1% in Q3FY18).
Other income for the quarter grew significantly by 45.8% yoy to Rs6.9cr.
Tax rate for the quarter stood at 16.7% against 22.7% in Q3FY18.
Jyothy Laboratories is currently trading at Rs182.8 down by Rs9.95 or 5.16% from its previous closing of Rs192.75 on the BSE.
Jyothy Laboratories Ltd is currently trading at Rs. 183.60, down by 9.15 points or 4.75% from its previous closing of Rs. 192.75 on the BSE.
The scrip opened at Rs. 194 and has touched a high and low of Rs. 194 and Rs. 182.65 respectively. So far 3,60,817 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.
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