Jyothy Labs slips after Q4 PAT drops 60% to Rs 27 cr

Jyothy Labs fell 2.94% to Rs 114 after consolidated net profit dropped 60.2% to Rs 26.59 crore on 23.8% fall in net sales to Rs 393 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax (PAT) tanked 68.5% to Rs 23.23 crore in Q4 March 2020 as against Rs 73.75 crore in Q4 March 2019. Current tax expenses slumped 80.7% to Rs 2.95 crore in Q4 March 2020 as against Rs 15.31 crore in Q4 March 2019. The Q4 earnings was released after trading hours on Friday, 5 June 2020.

The company expected mid-single digit sales growth for the quarter before the lockdown. But due to COVID 19-led lockdown, the business operations were suddenly disrupted across the country in March 2020. However, since most of the company's products forms part of essential hygiene goods sold from grocery chains, the company resumed its operations from mid-April 2020 in compliance with the directives issued by the government authorities.

 

Jyothy Labs' portfolio of household insecticide (HI) and personal care (soaps) have been impacted greatly because generally in the last fortnight of March, its trade partners stock 'HI' products anticipating the onset of high mosquito infestation season from April and also increase their stocks of 'soaps' anticipating a higher demand with the arrival of summer season. Due to the nationwide lockdown and disruption of business operations in the last fortnight of March sales of these segments were affected. However, the firm said that it has adequate resources to sustain the impact of COVID-19 and does not foresee any material adverse impact in the medium to long term on the business.

Commenting on the Q4 FY2020 financial performance, M R Jyothy, the managing director of Jyothy Labs, has said that: "This quarter has brought the onset of an unprecedented global crisis in the form of COVID-19 which has led us to increase our focus on our daily use 'Essential Hygiene Portfolio' as safety, health and hygiene are more critical now than ever. Considering this increased concern for personal hygiene the company launched Neem enriched Handwash and Sanitizer under the brand name 'Margo' which have seen a huge acceptance and demand."

"Despite the disruption in operations and sales as a result of the nationwide lockdown since the last fortnight of March 2020, the company has seen positive sales growth in the month of April and May 2020. We continue to serve the Indian consumers while scaling up our operations and ensuring health and safety of each of our employees and business partners. With a strong product portfolio, we are confident we will be able to meet the demands of the consumers and offer them quality products despite all the challenges," she added.

Jyothy Labs (JLL) makes fabric care, mosquito repellent, surface cleaning, personal care and incense sticks.

Powered by Capital Market - Live News