Jyothy Labs Q4 Review - Rising Material Costs Could Affect Margin: Motilal Oswal

Jyothy Laboratories Ltd.’s range of products. (Source: Company website)

Jyothy Labs Q4 Review - Rising Material Costs Could Affect Margin: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Jyothy Laboratories Ltd. delivered a miss on all fronts in its Q4 FY21 result.

Even if one adjusts for the sales impact of ~8% YoY on account of common reporting standards implementation (shared during the conference call), average growth in the last two-years remains weak (in mid-single digits).

While there has been improvement in net working capital days and the company is now net debt free, topline growth is key for a company with sales of only Rs 19 billion.

The likelihood of 15% sales growth continues to appear difficult.

Sales growth compound annual growth rate has been 3.7% in the preceding five years.

With margin likely to under pressure due to material cost increase, earnings growth prospects remain weak.

Click on the attachment to read the full report:

Motilal Oswal Jyothy Labs Q4FY21 Result Update.pdf

DISCLAIMER

This 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 author entity 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.