Views on Jyothy Laboratories 3QFY2014 results - Angel Broking

Views on Jyothy Laboratories 3QFY2014 results - Angel Broking:

"Jyothy Laboratories (JLL) continues to report strong quarterly numbers. For 3QFY2014, the company reported a top-line in line with our expectation, and operating margin and profit marginally above our expectations. The top-line grew by 26.8% yoy to Rs. 297cr, against our estimate of Rs. 305cr. The soap and detergent segment registered a strong growth of 28.4% yoy to Rs. 240cr. Also, the home care segment continued to show upturn in revenues, registering a growth of 25.9% on a yoy basis to Rs. 56cr. The advertisement cost and selling expense for the quarter stood at Rs. 27cr (9.2% of net sales), which is 71.6% higher than in the same quarter last year. The operating margin came in at 14.3%, marginally ahead of our estimate of 13.6%, attributable mainly to a lower-than-expected raw material cost. The company reported a profit of Rs. 27cr during the quarter, ie a growth of 63.0% yoy, against our estimate of Rs. 26cr. Given the successful amalgamation and restructuring along with the various marketing initiatives taken, we remain positive on the company from a longer term perspective. We continue to maintain our Accumulate rating on the stock."

Source : Equity Bulls

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