Jyothy Laboratories: Q4FY14 Result Analysis

Jyothy Laboratories (JLL) one of the major FMCG companies in India reported almost two-fold increase in its net profit for the quarter ended March 31, 2014. The net profit stood at Rs 29.16 crore for the fourth quarter ended March 31, 2014, as against Rs 11.81 crore posted during the same period of previous fiscal. It was mainly on the back of robust sales in soaps and detergent segment. Net sales of the company rose by 21.23% to Rs 329.91 crore in the fourth quarter, as against Rs 272.12 crore in the same period of previous financial year.

During the period under review, the company's soaps and detergent business, which includes brands like Ujala and Henko, posted sales of Rs 227.77 crore, up by 24.49% as against Rs 182.95 crore reported in Q4FY13. The home care business reported sales of Rs 99.06 crore for during Q4FY14 which grew by 18.02% from Rs 83.93 crore during the year-ago period. Its other brands like Fa and Neem witnessed revenue growth of 24% on YoY basis to stand at Rs 6.48 crore for Q4FY14.

The board has recommended final dividend of Rs 2 for FY14, taking the total dividend for the year to Rs 3.

Commenting on the result, JLL CMD MP Ramachandran said:"We have sustained our growth momentum despite inflationary pressures, rising input costs and moderation in demand. Going forward, we expect growth rate to sustain on the sales and margin front. We continue to enhance our market share in the urban market, without losing our focus in the rural market."