Jyothy Lab Q1 net earnings up by 78%
Mumbai: Jyothy Laboratories Ltd, the maker of Ujala liquid fabric whitener, on Thursday reported 78.2% rise in the first-quarter profit on the back of higher sales, lower costs, and flat tax expense growth.
The first-quarter profit for the company stood at Rs.45.9 crore, as against Rs.25.8 crore a year ago.
Consolidated net sales rose 8.9% to Rs.439.9 crore from Rs.403.9 crore a year ago. However, volume growth was higher at 10.2% as the company increased its promotions and offers in a competitive market.
A Bloomberg consensus of 13 analysts had estimated a net profit of Rs.54.62 crore and revenue of Rs.458.40 crore.
Its fabric care business includes fabric whitener Ujala and detergent powder business of Mr White saw revenues grow by 10.7%, while the dish-washing segment—with products such as Pril grew the revenue by 9.9%.
“This quarter has been one of the good quarters with volume growth coming in at 10.2%,” said Ullas Kamath, joint managing director, Jyothy Laboratories while explaining that by end of the year volume growth should further pick up to 12%-14% as now monsoon is on time and the seventh pay commission coming in. “As such and offtake has been good last 45 days in rural,” he said.
During the quarter on 1 April, the open offer for German head-quartered Henkel AG and Company, KGaA kicked in wherein the company can look at acquiring a 26% stake in Jyothy Laboratories. The option was part of the deal when Jyothy laboratories acquired Henkel’s India business five years ago in May 2011. The offer will be open till next April. “We are in discussions with them [Henkel],” said Kamath who did not want to disclose further details.
Shares of Jyothy Laboratories closed at Rs.285.40 on BSE, down 0.33% from previous close, while India’s benchmark Sensex rose 0.31% to 27,859.60 points.