Jyothy Laboratories gains 7% as board approves 1:1 bonus issue

The stock moved higher by 7% to Rs 398 after the company said the board has recommended issue of bonus shares in the ratio of 1:1 i.e. one bonus share for every one share held on the record date.

Shares of Jyothy Laboratories have moved higher by 7% to Rs 398 per share on the BSE after the company said the board has recommended issue of bonus shares in the ratio of 1:1 i.e. one bonus share for every one share held on the record date.

Meanwhile, in March 2018 quarter (Q4FY18) the company reported a strong operational performance with EBIDTA (Earnings before interest, tax, depreciation and amortization) margin 330 bps to 17.1% from 13.8% (on GST adjusted sales) in previous year quarter.

Net revenue during the quarter under review up by 17% at Rs 5.17 billion against Rs 4.41 billion in the corresponding quarter of previous fiscal.

“The net profit stood at Rs 760 million against Rs 1,074 million, down by 29.3% due to tax reversal on setoff losses of JCPML (Erstwhile Henkel Marketing India) with JLL in FY2017,” Jyothy Laboratories said in a BSE filing.

The significant growth that the company has achieved in the previous quarter has assured us that we are taking necessary steps. The rural and urban demand is expected to grow due to many factors such as predicted good monsoon & initial signs have already kicked in. We will continue to invest on our individual brands and focus upon providing the best quality across categories without compromising margins as stated before," said M P Ramachandran - Chairman & Managing Director, Jyothy Laboratories.

At 03:09 pm; the stock was quoting 5% higher at Rs 391 on the BSE, against 0.4% decline in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-fold with a combined 432,661 shares changed hands on the BSE and NSE so far.