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Jyothy Labs Ltd has recently announced its performance for the quarter ended March 31, 2025. Following are the key financial highlights:
Highlights from the Quarter (Q4FY25):
Jyothy Labs Ltd (JLL) reported a flat quarterly net revenue of Rs.682.4cr for Q4FY25, marginally higher by 1.4% YoY and lower by 4.9% on a QoQ basis. The company reported an EBITDA of Rs.127.4cr for the quarter vs Rs.121.3cr for the same quarter in the previous year, and Rs.129.6cr in the preceding quarter. Subsequently, the company posted a net profit of Rs.76.3cr for the quarter.
While rural demand showed relative improvement in Q4, it was not sufficient to offset the continued weakness in urban consumption. Urban households have been particularly impacted, with higher spends on housing, healthcare, education, and utilities affecting both discretionary and essential consumption. Consumers are opting for smaller packs, holding back on bulk purchases, and showing heightened price sensitivity.
Fabric Care saw growth largely led by volume, driven by liquid detergents, and gross margins improved year-on-year. Dishwash also recorded value and volume growth, with strong double-digit volume increase, but lower average realization due to promotions impacted margins. Personal Care declined this year, primarily due to challenges in the Margo franchise, though efforts are underway to revitalize the brand, with better performance expected in FY26.
The divestment of the 75% stake in overseas subsidiary Jyothy Kallol Bangladesh Limited (JKBL) was decided due to the subsidiary not yielding desired results despite efforts, stretching management bandwidth without proportionate returns. Stronger opportunities exist within India and export markets like the Middle East and Southeast Asia. The sale to the JV partner, Kallol Enterprise Limited, was for Rs.2.1cr and resulted in a loss of around Rs.4cr shown as an exceptional item
The first half of FY26 is expected to be difficult, with pressure on top-line growth and potentially stress on EBITDA margin. The second half is expected to be better due to anticipated demand improvement and the full impact of planned price increases flowing into the P&L. JLL continues to remain debt-free with a robust cash, bank and equivalents balance exceeding Rs.750cr.
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