Mumbai-based FMCG company Jyothy Labs Limited announced robust results for the second quarter ended September 30, 2023. The company reported an 11.1% increase in net sales to Rs 732 crores compared to the same period last year. Net profit jumped 59.1% to Rs 104 crores versus Rs 65.4 crores in Q2 FY2023.
The growth was broad-based across Jyothy’s core segments like fabric care, dishwashing, personal care and household insecticides. The fabric care division, comprising products like fabric whitener, bar soaps and detergents, grew 10.6%. Dishwashing sales were up 10%, aided by the company’s Exo and Pril brands. Personal care, including body soap and toothpaste, rose 22.3%. Household insecticides like mosquito coils and liquid vaporizers increased 3.4%.
Jyothy Labs said it has leveraged its expanded distribution network to drive higher sales. New product introductions like the Margo Neem Naturals range in the personal care segment also boosted growth. The company’s sustained brand investments, R&D efforts and technology-enabled distribution have resulted in market share gains across categories.
On the profitability front, Jyothy Labs saw a strong improvement in margins due to operating leverage and cost optimization initiatives. EBITDA margin expanded significantly to 18.5% in Q2 from 12.2% last year. In absolute terms, EBITDA jumped 68.3% to Rs 135.4 crores. The company is focused on building a business model with higher scale and margins along with a healthy balance sheet.
For the half year ended September 2022, Jyothy Labs registered 13% revenue growth to Rs 1,419 crores compared to H1 FY2023. Net profit surged 77.1% to Rs 200.2 crores. EBITDA margin improved to 17.8% from 11.2% in the same period last year. The company reported a healthy cash balance of Rs 440 crores as of September 30, 2022.
Commenting on the results, Managing Director M.R Jyothy said, “The demand across our product portfolio has been stable despite inflationary pressures. With continued distribution expansion and strengthening of brands, we have delivered consistent business growth.” She expressed confidence in sustaining the growth momentum across quarters driven by the company’s strategic efforts and focused execution.
Jyothy Labs is engaged in manufacturing and marketing of products across fabric care, dishwashing, household insecticides and personal care. Its major brands include Ujala, Henko, Pril, Margo, Maxo and Exo. With a pan-India distribution network, Jyothy Labs products have a strong presence across urban and rural markets.
The Q2 results mark a continuation of Jyothy’s successful turnaround strategy over the last two years. The new management has focused on strengthening the company’s core brands and categories, expanding distribution reach, driving higher ad-spends and improving profitability. These efforts have yielded positive results in terms of double-digit sales growth, market share gains and higher profitability.
Going forward, Jyothy Labs aims to sustain the growth momentum across its portfolio and it remains confident of posting sales and profit growth despite a challenging macro environment. Key focus areas, it said, will remain leveraging its strong brands and distribution network, introduction of new products and margin improvement.