Jyothy Labs conducted their earnings con-call today at 3:00 PM

Here are the key highlights 😀👇

@drprashantmish6 @unseenvalue @proxy_investor @deepakshenoy

#concall

Sector Trend:
• Strong demand in Homecare and healthcare
• Institutional business has gradual comeback and now near to pre-covid level
• New launches: Exo All Surface Cleaner launched in South of India
• Media spent increased for more growth
• Market share has been improved
Business: Updates:
• A&P spend increased with growth in business segment.
• Segmental performance in image.
• Due to lower other expenses the EBIDA margins have seen growth insipte of increase in adv. cost.
Business segment:
• Mainwash segment has started doing better.
• Postwash segment is still constrain as school and office are closed. However there is gradual growth.
• Dishwash segment remain robust and company continuous to see good growth over diswash.
Sales Growth:
• Higher utlization has been helping in decreasing the cost.
• Sales force with higher utlization reduces per cost, hence increase in margin.
• Increase in price has very little part.
• Company has current guidance of same margins of around 14-15%.
Recovery of Detergent:
• All of the detergent are back on growth.
• Ujala and Mr White are doing good. Ujala post wash is coming back to pre-covid levels (90-95% of pre-covid levels)
• Crisp and Shine has been only in 2 states which is affect by covid, hence it may take time.
Household Insecticide.
• Coil segment company has 20% of market share and in liquid company has 8-10% of market share.
• Segment is still profitable.
• Company expects more 3-4 quarter to see a significant growth in the liquid coil segment.
• Coil segment company has 20% of market share and in liquid company has 8-10% of market share.
• Segment is still profitable.
• Company expects more 3-4 quarter to see a significant growth in the liquid coil segment.
• Product Delivery have been improved with compare to competitor.
• Other Expense as a % of sales will be same and there is no on-off.
• Tax Rate: Company is under MAT for this year and entire FY 2022, hence tax rate can be 18-20%.
• Personal care: Main growth driver is Margo
• Rural growth is higher than the urban.(1.3:1 growth rate rural:urban).
• Channel Inventory: Generally is 2-3 week
• Debt: Company stands at net cash. Gross debt is expected to be ~50-60cr.
• There may be little decline in A&P cost keeping EBIDTA margins expectation in line.
•Low presence in East: East is next biggest market hence there is good presence of the company.

• In e-commerce company don't go for Grofferes due to unfavourable T&C.

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