Jyothy Labs Posts Mixed Q3FY13 Numbers

Jyothy Laboratories came out with a mixed set of numbers for the recently concluded Q3FY13. The topline witnessed a growth of 22.53% on a YoY basis to stand at Rs 203.78 crore. The EBITDA witnessed a growth of 27.85% on a YoY basis to stand at Rs 35.77 crore for Q3FY13. However, there has been some pressure on the bottomline front. The PAT witnessed a decline of 10.38% to stand at Rs 26.06 crore as against Rs 29.08 crore for the same quarter last year.

The total expenditure as a proportion to sales witnessed a significant jump and stood at Rs 168 crore for Q3FY13 as against Rs 138 crore for the same quarter last year. However, the decline in the net profit can be attributed to higher finance cost and tax outgo which went up significantly in this quarter on a YoY basis. The interest cost went up by more than 5% to Rs 17.17 crore and ate away the profits. The company has given more importance to its promotional activity as the expenditure on the advertising went up to Rs 5.24 crore for Q3FY13 as against Rs 3.96 crore for Q3FY12.

On the valuations front, the stock discounts its trailing twelve month earnings by 26.91x, which is much cheaper than its peers. Although trading at a lower PE, it is advisable for investors to look at it with a different perspective. The company has not been performing consistently like its peers, and therefore waiting for another quarter before investing in the stock would be the ideal suggestion.