ICICI Direct: Jyothy Laboratories Posted Strong Rebound In Q1; Long Term Challenges Intact

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Jyothy Laboratories Ltd. reported strong growth in Q1 FY21 with 4.1% revenue growth led by 16.6% and 151.1% growth in dish washing and household insecticide segments, respectively.However, fabric care segment saw 23.8% de-growth. Personal care segment sales were flat at Rs 60 crore. Overall volume growth was 6%. The strong growth in dish washing was driven by higher ‘in-home’ consumption and hence more usage of dish washing products.The robust growth in household insecticide was aided by low base quarter, early arrival of monsoon and large stocking by trade before season. The sharp decline in fabric care was due to lower fabric whitener sales, which was impacted by reduced ‘out of home’ activity.Personal care sales was flat with lockdown more prominent in key state (Margo has larger saliency in West Bengal, Tamil Nadu). Gross margins were down 182 basis points with change in product mix (lower fabric whitener sales in Q1).However, operating margins were up 233 basis points to 18.3% mainly driven by 350 basis points lower marketing spends and saving in overhead spends. Net profit was up 40.4% to Rs 50.4 crore..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Jyothy Laboratories Posted Strong Rebound In Q1; Long Term Challenges Intact

ICICI Direct: Jyothy Laboratories Posted Strong Rebound In Q1; Long Term Challenges Intact

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