Jyothy Labs jumps over 5% as core profit, margin grows in Q2

Jyothy Labs Ltd shares surged 5.5% on Monday following the release of its earnings results for the quarter ended September 30, 2024. The company’s consolidated profit after tax (PAT) gained marginally by 1% on a year-on-year (YoY) basis to ₹105 crore in the second quarter of the current financial year, up from ₹104 crore in the same period last year.

Jyothy Labs’ operating Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) witnessed a single-digit growth of 2.3% on a year-on-year basis to ₹138.5 crore in the July to September 2024 period as compared to ₹135.4 crore in the corresponding quarter of the previous year.

Its margin also rose to 18.9% in Q2 FY25 as opposed to 18.5% reported in the year-ago period. The gross margin increased to 50.2% in the quarter under review from 49.2% in Q2 last year.

The company’s consolidated revenue from operations, however, remained flat at ₹733.8 crore in the September-ended quarter as compared to ₹732.3 crore in the second quarter of the last fiscal year, witnessing a muted 0.2% uptick YoY.

Opening flat at their previous close of ₹477.35 a piece on the BSE, shares of Jyothy Labs Ltd rose to touch an intraday high of ₹503.66. The stock was seen trading 2.9% lower at ₹463.50 apiece on the BSE around 1:40 p.m.

The company underscored a resilient market position in the September quarter amid muted consumer demand and seasonal fluctuations, Jyothy Labs said in a press release on Nov. 12.

The company’s advertising and promotional spending was 8.3% for the quarter, an increase of 6.4% over the same period last year. Despite softer consumer demand and seasonal impacts, the company continues to remain focused on ensuring strong brand visibility, Jyothy Labs said.

“Going forward, our strategy includes deepening our distribution network in rural markets and expanding our direct retail presence. Volume growth will be a key metric for us as we focus on both rural and urban segments through targeted innovation and a strengthened distribution network,” said the Chairperson and Managing Director of Jyothy Labs, M R Jyothy.

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