Jyothy Labs declines after Q3 PAT slides 12% YoY

Jyothy Labs slipped 2.68% to Rs 148.75 after consolidated net profit declined 11.97% to Rs 45.02 crore in Q3 December 2019 as against Rs 51.14 crore reported in Q3 December 2018.

Net revenue declined 5.9% to Rs 421 crore in Q3 December 2019 over Q3 December 2018. The result was announced during market hours today, 5 February 2020.

Profit before tax (PBT) for Q3 December 2019 stood at Rs 49.28 crore, down by 22.39% from Rs 63.50 crore reported in Q3 December 2018. Current tax expenses stood at Rs 7.21 crore in Q3 December 2019, declining 38.95% from Rs 11.81 crore reported in Q3 December 2018.

The company reported an operating EBIDTA margin at 15.8% (Rs 66.3 crore) in Q3 December 2019 as against 16.1% (Rs 72.1 crore) in Q3 December 2019.

Revenue from fabric care segment, which includes fabric whitener, enhancer, bar shop and detergent powder declined 10.88% YoY. Revenue from dish washing segment, which includes dish wash bar, liquid and dish wash remained flat at Rs 150 crore. Revenue from personal care segment declined 10% YoY.

Commenting on the performance, M P Ramachandran - Chairman & Managing Director, Jyothy Labs said, "The Economy has seen an overall slowdown in the past quarters which has impacted consumer demand for FMCG products, more notably rural demand and working capital constraints faced by channel partners. However recent initiatives announced in the Union Budget will increase disposable income with Middle class individuals and propel the consumption at Rural India. Inspite of general slowdown our market share across all our brands has been growing and we continue to focus on technology led distribution and keeping up to the promise of providing best quality products to our customers.

Jyothy Labs is a fast moving consumer goods company.

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