JYOTHY LABS LIMITED — Call Transcript 2025

Nov 15, 2025

November 15, 2025

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To,

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 023 BSE Code: 532926

Na�onal Stock Exchange of India Limited Exchange Plaza, Bandra – Kurla Complex, Bandra (E), Mumbai – 400 051 Scrip Code: JYOTHYLAB

Dear Sir / Madam,

Sub : Transcript of the earnings conference call for the quarter and half-year ended September 30, 2025

Pursuant to Regulation 30(6) read with Part A of Para A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, transcript of the earnings conference call held on Wednesday, November 12, 2025 for analyst/ investors to discuss the Un-audited Financial Results for the quarter and half-year ended September 30, 2025 and the way forward, is enclosed.

Further, the aforesaid information is also available on the website of the Company at www.jyothylabs.com.

Kindly take the above on your record and disseminate the same for the informa�on of investors.

Thanking you,

Yours faithfully,

For Jyothy Labs Limited

SHREYAS Digitally signed by SHREYAS PARAG PARAG TRIVEDI TRIVEDI Date: 2025.11.15 16:44:18 +05'30' Shreyas Trivedi Head – Legal & Company Secretary

Encl.: as above

Jyothy Labs Limited CIN: L24240MH1992PLC128651

‘Ujala House’, Ramkrishna Mandir Road, Kondivita, Andheri (East), Mumbai 400059. Tel: +91 022-6689 2800 | Fax: +91 022-6689 2805 info@jyothy.com | www.jyothylabs.com

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“Jyothy Labs Limited Q2 FY'26 Earnings Conference Call”

November 12, 2025

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MANAGEMENT: MS. M. R. JYOTHY - CHAIRPERSON AND MANAGING DIRECTOR, JYOTHY LABS LIMITED

MR. PAWAN AGARWAL - CHIEF FINANCIAL OFFICER, JYOTHY LABS LIMITED

MODERATOR: MR. DHIRAJ MISTRY - ICICI SECURITIES

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Moderator:

Ladies and gentlemen, good day and welcome to the Jyothy Labs Q2 FY'26 Earnings Call Hosted by ICICI Securities.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * then 0 on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Dhiraj Mistry from ICICI Securities. Thank you and over to you, sir.

Dhiraj Mistry:

Hi, good evening all and thank you everyone for joining this call.

First of all, I would like to thank management of Jyothy Labs to give this opportunity to host this call. From the management, we have with us Madam Jyothy with us and Mr. Pawan Agarwal - CFO. Over to you, ma'am for your opening commentary. Thank you.

M. R. Jyothy:

Thank you. Good evening, everyone. Thank you for joining us for Jyothy Lab's Q2 FY'26 Earnings Call. Our financial results and investor presentation are available on our website and the stock exchanges and I hope you have had the opportunity to go through them.

The operating environment in Q2 was mixed. While the quarter started on a positive note, the GST rate revision announced by the government in September 2025 caused some disruptions in the marketplace. As a result, growth in the September quarter was nearly flat as the distribution network adjusted to the new GST structure. However, the early demand signals are encouraging as we have begun Q3. During the quarter, the government implemented a revised GST rate structure for several daily essential categories. For Jyothy Labs, this included key products within our personal care portfolio such as toilet soaps and toothpaste which together account for around 11% of our business. The benefit of lower GST has been fully passed on to the consumers through revised pricing and the change remains cost neutral for the Company. This transition led to temporary disruption across trade channels as distributors and retailers adjusted to the new rate structure and refreshed inventory with revised prices.

We continue to believe that a broad-based consumption recovery is underway aided by supportive fiscal measures, tax rationalization and stable macroeconomic conditions. We expect the demand environment to strengthen gradually through the second half of the year. Across channels, general trade remained subdued while modern trade e-commerce and quick commerce maintained double-digit growth led by strong performance in Fabric Care and Dish Wash.

Let me now turn to the performance of our key segments:

In Fabric Care, both Main Wash and Post Wash delivered an encouraging performance. Value growth was 6.1% and volume growth was in high single digits. Liquids more than doubled yearon-year driven by strong performance from Henko, Ujala, Morelite and Mr. White. Detergent

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powders and bars maintained their momentum. New launches made in the past few months have been well-received and are delivering sales in line with expectations. We also introduced Dr. Wool, expanding Jyothy Labs' fabric care portfolio into a premium niche and strengthening its presence in special garment care. The dish wash segment volumes grew 3.4% despite a 3.8% value decline driven by price corrections and grammage offers on bars. Liquid continued to outperform bars. The performance of personal care segment was impacted by the GST transition in September. We expect the segment to normalize and return to growth in H2. In household insecticides, the growth remained muted as we continue to focus on profitability improvement over the next 4-6 quarters. New product formats such as Maxo Aerosols and anti-mosquito rackets are showing early traction. The medium-term focus remains on driving efficiency and turning around the category.

In summary, despite short-term disruptions from the GST transition, our fundamentals remain strong. Rural demand trends are encouraging, premium segments are expanding and modern trade and digital channels continue to gain share. We remain confident of delivering steady broad-based growth in the second half of FY'26.

Now coming to our financial performance:

Revenue from operations for Q2 stood at Rs. 736 crore, reflecting value growth of 0.4% and volume growth of 2.8% year-on-year. The difference between value and volume growth was primarily due to MRP reductions, higher grammage and promotional price-offs in select categories. Gross margin for the quarter was 48.1%, lower by 210 basis points year-on-year, mainly due to input cost pressure and price reduction and consumer offers in select categories. Sequentially, however, gross margin was protected despite lowering of prices in certain categories. Also, commodity prices saw some signs of stability during the quarter. Employee costs increased by around 5% year-on-year and were maintained at 11.5% of revenue on a sequential basis. Advertisement and promotion spends were at 8.4% of revenue, marginally higher than the same period last year.

With expectations of a better sales trajectory, we made a calibrated increase in brand and trade investments during the quarter. Other expenses remained range-bound at around 12% of revenue, supported by cost discipline and operational efficiencies, despite subdued market demand. Despite input cost and volume pressures, EBITDA margin was maintained at 16.1%, in line with our earlier guidance. We expect EBITDA margin to remain in the range of 16%17% in the second half, assuming commodity prices remain stable and demand continues to improve. Operating EBITDA for Q2 stood at Rs.118 crore and PAT was at Rs. 88 crore. For the half-year ended 30[th] September 2025, revenue from operations was a little over Rs. 1,487 crore, representing 1% value growth and 3.2% volume growth. Fabric care and dishwash segments delivered mid to high single-digit volume growth during the period. Gross margin for H1 stood at 48%, compared to 50.8% in H1 last year. While operating EBITDA margin was 16.3% against 18.4% in the previous year.

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The effective tax rate for the half-year ended was 25%, compared to 24.2% of FY'25 and is expected to remain in the range of 24%-25% for FY'26. Net working capital stood at 22 days as of 30[th] September 2025, compared to 19 days as of 31[st] March 2025. The temporary increase in working capital was due to a shift in channel mix with a larger share of business now coming from modern trade e-commerce and quick commerce, where credit cycles are longer than in general trade. We expect net working capital to normalize around 18-20 days in the medium term. Net cash generation from operations improved to Rs. 196.5 crore compared to Rs. 188.9 crore last year. With a strong cash balance of Rs. 801 crore and zero debt, the Company remains well positioned to fund growth and invest in innovation. We remain cautiously optimistic about a gradual improvement in demand and further stability in commodity prices. Our focus remains on profitable and organic growth, strengthening core categories, invest in innovation and scaling up new product launches.

I would like to take this opportunity to thank our teams for their continued commitment, our trade and distribution partners for their support and our investors for their trust and engagement. We appreciate your time today and look forward to your questions. Thank you.

Moderator:

Thank you very much. We will now begin the question-and-answer session. The first question comes from the line of Rishabh Shah from BugleRock PMS. Please go ahead.

Rishabh Shah:

Hi, thanks for the opportunity. My first question was we had launched a new beauty soap, Jovia. So I have a question on that. Our previous soap brand, Margo, was not as successful as we were expecting. So what is your thought process on this new brand? How big can we make Jovia as a brand?

M. R. Jyothy: Hi, Rishabh. Margo Neem Naturals is the one that you are talking about and it is doing reasonably well. Now as we see in Q3, we can see good enough improvements in the brand and in personal care. So Jovia and Margo both put together and are delivering for us from Q3 onwards. Yes, the first half was muted, but going forward, both of these brands will start delivering.

Rishabh Shah: Okay, so by when can we expect to have a significant contribution from these brands? Like from the next year onwards or from the second half of this year?

M. R. Jyothy: See, personal care for us in the first half was muted. Going forward, yes, it should come. Jovia as a brand is a new brand, so it will take its time, but it is doing fairly well.

Pawan Agarwal:

And moreover, we have actually made good investment behind Margo Franchisee in terms of advertisement spend in this quarter and those investments are also going to yield good dividend going forward. So both Original Neem and Neem Natural are likely to perform better as we go forward.

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Rishabh Shah:

So my next question was, in terms of some product categories, we have not been as much successful on the national level in some of the product categories. So we have remained in a comfort zone in the southern markets. So what are your future plans to make the product a national brand and let's expand more in the other than the non-south regions of India? And which products of your portfolio can make it?

Pawan Agarwal:

So actually, the comment that you made that our brands are focused or concentrated in southern India only is not entirely correct because our revenues from southern India has come down from 40% odd to 33% over the past few years. So we are expanding our product portfolio to pan-India basis. So that's point number one. Point number two, there are many brands, you can take Exo, you can take Pril, you can take Margo. Ujala also now is expanding and going upwards. So there are many brands which are pan-India and it would be unfair to categorize us as a southern India based company and all the brands focused on southern India.

Rishabh Shah:

Okay. Thank you. I will get back in the queue.

Moderator: Thank you. The next question is from the line of Vishal Gutka from ASK Investment Managers. Please go ahead.

Vishal Gutka:

Hi madam. Three questions from my side. First question is on the aspiration for revenue growth for second half of the FY'27. This is in the context that competitive intensity has gone up across segments and HUL also is going very aggressive across categories. So what are your thoughts on that? Secondly, new launches, couple of new launches we have made. First thing is on the Wool and secondly, Ujala Young & Fresh. So are we expecting to enter more categories because second half has already started, we are yet to see launches. So what is the overall new product launch calendar? And third question is on M&A front. Now we are almost around Rs. 800 crore on books, right? So what is the thought process? What is the constraint that is hindering us from making acquisitions? Thank you.

M. R. Jyothy:

Vishal, s o second half, yes, it is a very competitive market. But since there are a lot of positive indicators that are there and also going by what our October sales has been, it looks positive. So I can only comment that we are aiming to be back like how we were in the past. So we are trying to do all that it takes for building our brands and making it grow volume wise double digits. At least by exit of this year, we should aim at double digit volume growth.

Vishal Gutka:

Sorry to interrupt. Value and volume should be similar or there should be a gap in value and volume growth?

Pawan Agarwal:

There will be a gap, Vishal, because we have been maintaining that given the market scenario and the average realization being lower. So there will be a gap and this gap would be different for different categories. But on an overall basis, there will be 2%-2.5% gap.

Vishal Gutka:

Okay. Got it. Go ahead, sir. Thank you.

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M. R. Jyothy:

And NPDs, Dr. Wool, what you mentioned is a very recent launch. It is specialized garment care, especially for your winter clothes and your delicate fabrics. It is just launched and it has been well received. It will be mostly selling especially in the winter months. But there was a gap there in the offerings. And hence, we have introduced that Young & Fresh. Yes, we had introduced it early on in this year. It is a fabric conditioner and it has been also been received reasonably well. So, yes, going forward, these are the other two brands that will be contributing in the fabric care category. Few more NPDs will be there, which you will come to know when we launch it. But there are a couple of them in the pipeline.

Vishal Gutka:

And it will be launched in F'26 only or we are planning to postpone to F'27?

Pawan Agarwal: So you will see more launches in this year itself. Of course, there will be some lined up for next year.

Vishal Gutka:

Got it. Thank you.

Pawan Agarwal: And on your third question on M&A opportunities and the cash balance. So, as we have mentioned in the earlier calls also, that we are actively looking for the right asset. And we have explored a few of them. And we are in talks with a few of the assets, a few of the businesses. So, as and when it materializes, it will be made known to the streets.

Vishal Gutka: Great. Wishing you all the best, Jyothy madam and the team. All the best for future projects. Thank you.

M. R. Jyothy:

Thank you.

Pawan Agarwal:

Thank you.

Moderator: Thank you. The next question is from the line of Nitin Shakdher from Green Capital Single Family Office. Please go ahead.

Nitin Shakdher:

Hi. Good evening, Jyothy and to the management. My name is Nitin Shakdher. I am from the Green Capital Single Family Office. My question is more as an investor rather than an analyst. If I look at the categories which the company, obviously its legacy businesses are in, there are a couple of new brands and upstarts which are coming in with low volume but maybe differentiated products. Now, we just spoke about M&A and the acquisition. But just wanted to get a flavor of the aggressiveness of the management in terms of trying to takeover categories from newer players. Let's say like Koparo Clean and all that. And just wanted to get a sense of how the Company is envisaging growth, one through organic and inorganic means because it's obviously sometimes easier or less expensive to take over a brand rather than build a brand from scratch, at least in terms of the premiumization strategy? Just a little flavor on that would be nice. Thank you.

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Pawan Agarwal:

So, thanks Nitin for this question. It's a classical debate of make or buy. And as I mentioned, we are looking at assets which actually complement us and the adjacent categories. And the asset which we are able to leverage on our strengths. So, it will be a combination of all these factors. And we believe that we have a huge runway available in terms of our existing categories for organic growth. So, in terms of future growth, it will be a combination of both organic and inorganic.

Nitin Shakdher:

I understand that. But what I was coming to was that more in terms of slightly higher growth than the category of the market which is consistent and Jyothy has for the many 10-15 years has been on consistent growth categories. But how does a brand take the leap forward and not risk newer competition coming in and eating in margins? Just, it's a classic case of an investor trying to decode the long-term runway of a company. Not so much in terms of analysis or percentages and quarterly margins that the company very well knows. So, just sort of a discussion on that.

M. R. Jyothy:

Nitin, the only way to build any brand for us quarter wise is not something that even we are focused. We are more here for the long term. And that's why you see consistent investment, be it ad spends, be it innovations and the kind of R&D pipeline that we have developed. And some of the launches that you will see in the coming years is something that we are already preparing. And to say that we actually don't need an acquisition in that sense. We have enough, to grow organically with our current brands and the pipeline that we have. But having said that, to fast track growth and to have even more aggressive this thing is where the acquisitions will help. But yes, we have a few things lined up with differentiated offerings. And that should be able to do the fair contribution in the coming years. So that's what we are expecting. And let's see where it takes us.

Nitin Shakdher: Okay, ma'am. All the best and all the best for Quarter 3 and Quarter 4. Thank you.

M. R. Jyothy:

Thank you so much.

Moderator: Thank you. The next question is from the line of Umang Shah from Banyan Tree Advisors. Please go ahead.

Umang Shah: Thank you for the opportunity. Ma'am, wanted to confirm the first thing was only our personal care portfolio is affected by the GST, right? Everything else is no change?

M. R. Jyothy:

Yes.

Umang Shah: Would it be possible to quantify the GST impact? If things were normal, what would have been our growth?

Pawan Agarwal: No, it's difficult to put a number behind this, but there was a general disruption in terms of channel. The order offtake was significantly dropped. And in fact, at the Kirana store level, they had tax paid stock. So they were reluctant to place order until their tax paid stock inventory gets liquidated. And then similarly, the distributors were also, they slowed down their orders. So

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overall personal care was largely affected because of the GST reduction. In other categories also, although they were not covered by GST, but there was a lot of confusion and chaos in the channel. So the safest thing that they could do is to stop buying and wait for the final situation to get clearer by 22[nd] September. So as a result, as Jyothy mentioned in our opening remark, this was affected, the business was affected in September.

Umang Shah:

Got it. So although the category affected was only 11%, but because the same distributor has a lot of confusion with respect to other things also, there was de-stocking across the segments, not just personal care.

Pawan Agarwal:

That's correct.

Umang Shah:

Got it. Thank you. Second question was with respect to making the home insecticide segment profitable. So for last, for more than three years, I think the illegal incense sticks have been causing a big damage, both to the consumers and to the sector as a whole. At that time, we were under, our understanding was that once there's some action on these, we would get back with our coils. And then we were also focusing on liquid vaporizers. Now we are saying that we would want to focus more on profits. So just wanted to understand how would you want to go about it? And as per your internal workings, when is the break-even apparent?

Pawan Agarwal:

In HI segment, our stated position is that we are focused on turning around this segment. And we are not intending to lose more money behind coils. And that's a conscious call we have taken. We are focusing our energies, investments on liquid vaporizer. And we have also launched new products, Maxo Aerosol and Anti Mosquito Racket. See, all these categories are profitable categories and they are doing good for us. Of course, this is going to take time. And we have indicated that it may take another 4 to 6 quarters for this category, this segment to turn profitable. So that's the time it will take in our assessment.

Umang Shah:

Got it. Thank you. And this last question, if I can squeeze in. We have relied on having brand ambassadors for all of our products. And that also makes a lot of sense because we have a rural focused distribution of products also. Just wanted to pick your brain on, in last one year have we done a different kind of an activation through social media or something? And how have been the results? And going forward, how would you allocate your spends towards digital?

M. R. Jyothy:

Umang, we have been investing behind digital medium, while TV is also important for us being an FMCG company. But we are increasingly also shifting our budgets towards digital and rural markets also. So if you see some of our products, it depends on the brands that and what priorities we have and which regions, what focus we need to do. And we take those calls accordingly. But the digital spends definitely have increased from what it used to be.

Umang Shah:

Got it. Thank you so much. I'll get back in the queue.

Moderator:

Thank you. The next question is from the line of Harit Kapoor from Investec. Please go ahead.

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Harit Kapoor:

Hi, good evening. So just on this volume growth bit, Pawan, you mentioned there is a disruption. And it's not only in soap, it kind of filters out across because of the distributor behavior. But, most companies are calling out like a 2%-3% type of a disruption in terms of the growth. Would our number also be in that same ballpark? I just want to understand real volume growth to get a sense of how to build a gradual improvement into H2? So that's the first question.

Pawan Agarwal:

So Harit, as I mentioned, for us it is very difficult to put a number on the GST disruption. But overall, personal care took the biggest brunt in terms of GST. And in other categories also, there was some impact. But the bigger issue was on personal care.

Harit Kapoor:

And this personal care margin bit, which is the second question. If you look at last quarter, it is a flattish revenue growth. It used to be a double-digit EBIT, with a deceleration minus 4%, is the operating deleverage so high that the margin moves as it does? And should this margin move back to normalized level in Quarter 3 as the normalized growth starts to resurface?

Pawan Agarwal:

Very good question, Harit. There are 2-3 points which have led to the margin blip that you see in Quarter 2 in personal care. So I had mentioned earlier that in this quarter, we have made a sizable investment behind Margo brand. So that is kind of one-off item which is there sitting in personal care, EBIT margin. Second is the last year in H2, maybe towards November-DecemberJanuary, the price increases that we have taken in Margo. Those price increases have actually impacted the sale subsequently. So you see a lower state. And probably the input prices, if you look at the palm oil prices, Quarter 2 this year versus last year, there is 14%-15% increase. So input prices have gone up. So that has also affected. And I can indicate that going forward in a couple of quarters, we will be back to double-digit margin. Some of the actions that we are taking and the investment that we have made, that would help us accelerate our sales growth in personal care. And the margin should swing back to double-digit.

Harit Kapoor:

Got it. And on the dish wash bit also, the inflation or low realization or whatever impact you can call it, which is almost like 6%-7%, given that volume growth is still pretty good. How much of this is like schemes-led competitive intensity and how much of it is like actual pricing? Why I am asking is how much of this should be kind of extrapolated? I know you have given an overall 2%-2.5% number into H2, which will be deflation. But just on dish wash, how much of it is scheme-led? How much of it is kind of actual price cut? Just wanted to understand the market.

Pawan Agarwal:

It will be a mix of both, actually. Again, the bifurcation between scheme and others is difficult for dish wash. The lowering of MRP in certain SKUs in bars and also in liquids, the average realization being lower. Both these factors have actually led to this price decline in dish wash category in the quarter.

Harit Kapoor:

Okay, got it. And on the HI bit, I know the season has also been a bit challenging, that is reflective even in the other companies' numbers. But how much is the mix now in H1 for LV versus coil for our business now? How much has that number gone up? If you could just help us

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understand that. And I get your 4-6 quarter thought on breakeven. But how have we progressed on the LV ratio versus coil? If you could just help us understand that.

Pawan Agarwal: LV, I can tell you LV has surpassed coil. So that's the first milestone we have achieved. And we are gradually building on. And aerosol and rackets, as I mentioned, they are also falling in the similar category. So we are taking tiny steps with the objective to turn around the category in 4- 6 quarters.

Harit Kapoor: Okay, understood. And last point was on distribution. So H1, I know we do talk about 10% typically in distribution expansion on the direct side. But given all these disruptions this time around, etc., has the distribution-led piece been a bit slower? Any sense on the full year? Does it get shifted on to the early part of next year in terms of increasing touch points on the direct side? Some thought on distribution?

M. R. Jyothy: So Harit, distribution for us, yes, we have done quite a bigger part in the last 5 years. And it still continues in the same way. But since the base is higher, anything additional will look a bit smaller. But we are continuously investing. Our focus is definitely there on increasing the number of outlets. That still remains.

Harit Kapoor: And Jyothy, one last one maybe to you was, the optimism on closing or exiting F'26 on doubledigit is very encouraging. Are you seeing some of these positive triggers already play out? We are already almost a month and a half into or halfway through this quarter. So does your optimism also stem from what you are already seeing on the ground? And maybe that coupled with the innovation pipeline, is that the way to think about it?

M. R. Jyothy: Yes, definitely I think we are happy that our new NPDs have been received well. We will continue to focus on building those brands. And we also have few things in the pipeline, which obviously eventually you will come to know. But yes, our focus is there on the Fabri Care category and on other categories as well. But yes, the launches have been more in the Fabri care this time.

Harit Kapoor: Got it. I will come back if I have more. Thank you. Wish you all the best.

M. R. Jyothy:

Sure. Thank you.

Moderator: Thank you. The next question is from the line of Rishabh Shah from BugleRock PMS. Please go ahead.

Rishabh Shah:

Hi. Thanks for the opportunity again. So, as we read that Jyothy's edge has been created around retail services with a personal touch to both distributors and to the retailers. These distributors and retailers, when they have bad times in terms of inventory, let's say the payment is not on time and some other problems. So, how do Jyothy as a company do help them in such times?

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M. R. Jyothy:

See, Rishabh, one is we do business on cash and only if they are able to do that is what... So, if you see, we don't give credit in the market, especially you are talking about general trade. Most of our country distributors, we don't extend credit and we do business only as much as they can actually fund. So, there is nothing beyond that we do. But yes, there is a personal touch, there is a relationship that our field staff has built over the years and they know that we service them well. So, that is the understanding, it's all based on trust. So, yes, that's about it, nothing more.

Rishabh Shah:

So, next question, how is Jyothy Labs a different organization than the other FMCG companies or competitors in terms of hiring employees, the work culture and maintaining relationships with these distributors?

Pawan Agarwal:

As Jyothy said, our relationship with the channel, whether it is distributor or retailers has been very deep. We service them on time, in full. Our endeavor is to get the products up to the consumer using the distribution channel. So, the service is the differentiator. Second is the value that they get for various brands that we sell and the price that they pay. So, this is another aspect. Thirdly, the culture that we have built in the system is, in our business, it's a clean sale. So, we don't extend credit and overdue and then all of that in general trade, which is the sizable part of our business. So, we don't get into that kind of situation. So, the culture remains clean. There is unwanted pressure is not there on these hygiene sectors on the sales force for a large part of our business. So, I think these are the things which we believe that these are unique propositions from our side to the market.

Rishabh Shah: Just a last question. So, as you say, you are spending more on the rural side for some brands. Just wanted to know what was the contribution from the rural area towards our revenue, let's say, 3 years to 4 years back versus now?

M. R. Jyothy: 40%., Rishabh

Rishabh Shah: So, right now, it's 40%. And what was it 3 to 4 years back?

M. R. Jyothy: It remains more or less similar.

Rishabh Shah: Okay. So, as you are spending more on the rural side, but the contributions remain more or less similar to our topline?

M. R. Jyothy:

Yes.

Rishabh Shah: Okay. Thank you.

Moderator: Thank you. you. The next question comes from the line of Senthil Manikandan from Ithought PMS. Please go ahead.

Senthil Manikandan: Hi. Good evening. Just a couple of questions from my side. First is on the distribution channel mix. So, in the initial comments, Jyothy Madam has highlighted that there has been some

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slowdown in GT that has led to the higher share of other channels and in turn impacting the working capital cycle. So, if you can share what's the current proportion of quick commerce, e- commerce and modern trade versus GT over the last year, it will be very useful.

Pawan Agarwal:

So, overall, if you look at the channel distribution in the Company, our general trade is roughly two-thirds and the other channels put together would be one-third. And the other channels constitute modern trade, e-commerce, quick commerce, institutional sales, export, all put together. So, that is one-third of our total sales. We do not give e-commerce, quick commerce, various sub-segment break-up. We do not share that information.

Senthil Manikandan:

Okay. So, in terms of growth, any insight like how the different channels are growing?

Pawan Agarwal:

The entire basket that I just explained, that basket is doing well, is growing. And within that, e- commerce, quick commerce, and modern trade, that is doing reasonably well.

Senthil Manikandan: Okay. And this slowdown in GT is majorly in the urban markets because of quick commerce or it's like widespread pan-India level you see it?

Pawan Agarwal:

Largely, it is concentrated in urban markets as far as general trade slowdown is concerned.

Senthil Manikandan:

Okay, sir. Thanks. Second question is on the liquid detergent side. So, of late we have been seeing a lot of regional brands also got into this liquid detergent and they have been offering below Rs. 100 on a per liter basis. So, in terms of competitive intensity or in terms of differentiation, what the company is doing on the liquid detergent side? It's good that we have doubled the sales, kudos to the management. Just wants to know, with this regional brands entering, how is the landscape panning out?

M. R. Jyothy:

Like you said, there are local players and for us, we'll invest behind the brand. That's the biggest differentiation. And when it comes from an organized player, it comes with quality. The brands that we have launched, we have to live up to the name. So, the quality that we offer and the price, yes, it has to fetch that price, right? Local players, we don't know. Their quality may be good this time. It may be bad next time. But that's how they operate at cheaper prices. It's a matter of time that consumers understand which is a quality product. And for that, we continuously will invest behind behind our brands. Then it is totally up to the consumers whether they want quality or they want to go for a cheaper product.

Senthil Manikandan:

Okay. Thanks. That is from my side.

Moderator:

Thank you. We will take the last question from the line of Vishal Gutka from ASK Investment Managers. Please go ahead.

Vishal Gutka:

I think just two questions. First is the HI margin piece. So, I think a couple of things are very clear that movement towards liquid and consolidation of manufacturing that we are doing for HI. Can you please highlight what are the other things that you are doing to turn around this

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business operation? And second is on the personal care front. I think that during the quarter, you also had to provide a direct support, given the new prices in the GST regime are lower. So, what are the stocks that were lying in the trade, you had to provide some support. That was one of the reasons for declining margins?

Pawan Agarwal: So, on the first point, on HI, there are a lot of actions which are happening. And it is a plan on which we are working. At this stage, we will not be able to disclose what exactly we are doing at the back end. So, it is a combination of actions that we are taking on the product subcategory which is coil and liquid and then pricing and then the scheme and then back end operations. So, it is a combination of a lot of factors. And we are working on that. And second, can you repeat your second question please?

Vishal Gutka: Yes, for the Margo, since the prices were lower under the new GST regime, right? So, what are the stocks that were lying in trade? So, you were supposed to provide a trade support because of difference in prices, new and old?

Pawan Agarwal: No. So, when we sell to distributors, they had purchased at 18% earlier. And when the new rates came in, the rate became 5%. So, actually, they are having 13% advantage. They are having that input credit which they can utilize. So, there was no question of providing any support to distributors.

Vishal Gutka:

Got it. Thank you so much.

Moderator: Thank you. In the interest of time, this was the last question for today's conference call. I now hand the conference over to the management for closing comments. Over to you, sir.

Pawan Agarwal: Thank you, Dhiraj and thank you, operator. Thank you all the investors for your continued interest in Jyothy Labs Limited. Have a pleasant evening ahead. Thank you.

Moderator: Thank you, sir. On behalf of Jyothy Labs and ICICI Securities, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.

Disclaimer: This is a transcription and may contain transcription errors. The Company or the sender takes no responsibility for such errors, although an effort has been made to ensure high level of accuracy.

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