Jyothy Labs spreads 'Ujala'

Jyothi Laboratories announced its Q3FY14 numbers yesterday afternoon and the stock has reacted strongly today, up 4.5% at Rs.201.75, close to its intra day high at Rs.202. Volumes are up over 1 time.

The stock is riding high on the back of its exuberant Q3FY14 numbers. The company which makes soaps and detergents under the brand name of Ujala, Henko, Pril, Margo; Home care products like the mosquito repellant Maxo and Exo scrubber and other brands like Fa and Neem, posted a whopping 63% (YoY) jump in net profit at Rs.27 crore. Net revenue rose 27% at Rs.297 crore. EBITDA margin though showed some pressure, coming in at 14.3% v/s 15.5% and this was on account of higher cost on raw materials and increased spend on advertising and sales promotion.

In terms of segment break-up, soaps and detergents continue to lead, showing a growth of 28% on the topline. Ujala remains a strong market leader with a lion’s share of the market at 72.5%. Home care products saw a growth of 26% while Fa and Neem, which contribute just around Rs.4 crore to the topline, showed a jump of 78%.