Home insecticides business takes sheen off Jyothy Labs' Q4

Growth in volumes recovers after note ban; news flow on open offer the near-term trigger

Weak show of the household insecticides business (under the brand name Maxo), which forms about a fourth of Jyothy Laboratories’ (Jyothy Labs’) revenue, pulled down overall growth in the March quarter (Q4). Consequently, the company’s consolidated revenue grew 4.2 per cent year-on-year (y-o-y) to Rs 446 crore, missing the Bloomberg consensus estimate of Rs 478 crore. 

While peer Godrej Consumer Products (GCPL), too, witnessed some pressure on its household insecticides revenues in Q4, this business grew four per cent; but for Jyothy Labs, the household insecticides’ revenues fell six per cent y-o-y in Q4, indicating it could have lost market share,