MIRA INFORM REPORT
|
Report Date : |
23.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
JYOTHY LABORATORIES LIMITED (w.e.f. 12.08.1996) |
|
|
|
|
Formerly Known
As : |
JYOTHY LABORATORIES PRIVATE LIMITED (w.e.f. 15.01.1992) JYOTHY LABORATORIES |
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Registered
Office : |
Ujala House, |
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Country : |
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Financials (as on)
: |
31.03.2014 |
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|
|
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Date of
Incorporation : |
15.01.1992 |
|
|
|
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Com. Reg. No.: |
11-128651 |
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|
|
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Capital
Investment / Paid-up Capital : |
Rs.181.023 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24240MH1992PLC128651 |
|
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|
|
TAN No.: [Tax Deduction
& Collection Account No.] |
MUMJ05484D |
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Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
The Company is engaged in manufacturing and marketing of fabric
whiteners, soaps, detergents, mosquito repellents, scrubber, bodycare and
incense sticks. |
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|
|
|
No. of Employees
: |
Information denied by management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established and reputed company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a second straight year of
sub-5 % growth – the worst slowdown in more than a quarter of a century. The
data was below an official estimate of 4.9 % annual growth and compared with
4.5 % in the last fiscal year. However, the current account deficit narrowed
sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a
record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold
imports due to restrictions on overseas purchases and muted import of capital
goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion portal Myntra as it
prepares to battle with the rapidly expanding India arm of the global
e-commerce giant Amazon. The company raised $ 210 million from Russian
Investment firm DST Global which has also invested in companies like Facebook,
Twitter and Alibaba Group.
General Motors will start exporting vehicles from its Talegaon plant near
Pune in the second half of 2014. GM was one of the few global carmakers that
was using its India plant only for the domestic market.
Google has overtaken Apple as the world’s top brand in terms of value,
according to global market research agency Millward Brown. Google’s brand value
shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were
dominated by US companies.
Infosys lost another heavy weight when B G Srinivas, a board member put
in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana
Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the
other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs215033.700
Millions – in the three months ended March 31, mainly because it has been
offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of Amway India was arrested by the
Andhra Pradesh Police in connection with a complaint against the direct selling
firm. This is the second time that he has been taken into custody. A year, ago
the Kerala Police had arrested Pinckney and two company directors on charges of
financial irregularities.
China has told its state-owned enterprises to sever links with American
consulting firms after the United States charged five Chinese military officers
wih hacking US companies. China’s action which targets consultancies like
McKinsey & Co. and the Boston Consulting Group, sterns from fears that the
first are providing trade secrets to the US governments.
India has emerged as a country with some of the highest unregistered
businesses in the world. Indonesia has the maximum number of shadow businesses,
says a study of 68 countries by Imperial College Business School in London.
Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118
billion after the latter refused an offer of 55 pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Proposed Long Term Non-Convertible Debenture
= AA- |
|
Rating Explanation |
High degree of safety and very low credit
risk |
|
Date |
15.11.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED BY
|
Name : |
Mr. Apurva Mehta |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-22-66892800 |
|
Date : |
21.07.2014 |
LOCATIONS
|
Registered Office / Corporate Office : |
Ujala House, Ram Krishna Mandir Road, Kondivita, Andheri (East),
Mumbai-400059, Maharashtra, India |
|
Tel. No.: |
91-22-66892800 |
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Fax No.: |
91-22-66892805 |
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E-Mail : |
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Website : |
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Regional Office : |
# N-903, Rear Wing, Manipal Center, Dickenson Road, Bangalore-560042,
Karnataka, India |
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Tel. No.: |
91-80-25580243/ 25580245/ 25580247/ 25325693 |
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Fax No.: |
91-80-25580242/ 25580244 |
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E-Mail : |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. M. P. Ramachandran |
|
Designation : |
Chairman and Managing Director |
|
Address : |
403 Shagun Tower, Winga Gen. A.K. Vaidya Marg, Yashodham, Goregaon (East),
Mumbai-400063, Maharashtra, India |
|
Date of Birth/Age : |
22.08.1946 |
|
Qualification : |
Postgraduate Degree in Financial Management |
|
Date of Appointment : |
15.01.1992 |
|
DIN No.: |
00553406 |
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|
Name : |
Mr. K. Ullas Kamath |
|
Designation : |
Joint Managing Director |
|
Address : |
Flat No. 202, No. 40, Renaissance Mangalam, 13th Cross Between 10 and
11th Main Malleswaram, Bangalore-560003, Karnataka, India |
|
Qualification : |
M.Com., F.C.A., A.C.S., L.L.B., A.M.P. – Wharton Business School and
Harward Business School |
|
Date of Birth/Age : |
01.01.1963 |
|
Date of Appointment : |
26.03.1997 |
|
DIN No.: |
00506681 |
|
|
|
|
Name : |
Mr. S.
Raghunandan |
|
Designation : |
Whole Time Director and Chief Executive
Officer |
|
Date of Birth/Age : |
49 Years |
|
Qualification : |
MBA |
|
DIN No.: |
02263845 |
|
|
|
|
Name : |
Mrs. M.R. Jyothy |
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Designation : |
Whole Time Director |
|
Address : |
403 Shagun Tower, Winga Gen. A.K.
Vaidya Marg, Yashodham, Goregaon (East), Mumbai-400063, Maharashtra, India |
|
Date of Birth/Age : |
14.01.1978 |
|
Date of Appointment : |
24.10.2005 |
|
DIN No.: |
00571828 |
|
|
|
|
Name : |
Mr. Nilesh B Mehta |
|
Designation : |
Independent Director |
|
Address : |
203 Tulsi Villa, Podar Road,
Santacruz (West), Mumbai-400054, Maharashtra, India |
|
Date of Birth/Age : |
24.04.1962 |
|
Date of Appointment : |
07.02.2003 |
|
DIN No.: |
00199071 |
|
|
|
|
Name : |
Mr. K P Padmakumar |
|
Designation : |
Independent Director |
|
Address : |
House No. 5B, JM Paradise,
Palarivattom P.O. Ernakulam-682025, Kerala, India |
|
Date of Birth/Age : |
20.04.1944 |
|
Date of Appointment : |
25.09.2007 |
|
DIN No.: |
00023176 |
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|
|
|
Name : |
Mr. Bipin Ratanlal Shah |
|
Designation : |
Independent Director |
|
Address : |
8-D, IL Palazzo, Little Gibbs
Road, Malabar Hill, Mumbai-400006, Maharashtra, India |
|
Date of Birth/Age : |
16.07.1932 |
|
Date of Appointment : |
25.09.2007 |
|
DIN No.: |
00006094 |
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|
|
|
Name : |
R. Lakshminarayanam |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
58 Years |
|
Qualification : |
Master of Science in Industrial Chemistry |
|
DIN No.: |
00238887 |
KEY EXECUTIVES
|
Name : |
Mr. M.L. Bansal |
|
Designation : |
Company Secretary / Chief Financial Officer |
|
Address : |
801, Marathon Galaxy-I, L.B.S. Marg, Mulund (West), Mumbai-400080,
Maharashtra, India |
|
Date of Birth/Age : |
15.03.1948 |
|
Date of Appointment : |
31.07.2002 |
SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
105881401 |
58.49 |
|
|
15000000 |
8.29 |
|
|
120881401 |
66.78 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
120881401 |
66.78 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
8461123 |
4.67 |
|
|
21321 |
0.01 |
|
|
6807880 |
3.76 |
|
|
26276706 |
14.52 |
|
|
1000 |
0.00 |
|
|
41568030 |
22.96 |
|
|
|
|
|
|
6497498 |
3.59 |
|
|
|
|
|
|
10913537 |
6.03 |
|
|
101938 |
0.06 |
|
|
1061092 |
0.59 |
|
|
1080 |
0.00 |
|
|
98050 |
0.05 |
|
|
19516 |
0.01 |
|
|
649181 |
0.36 |
|
|
293265 |
0.16 |
|
|
18574065 |
10.26 |
|
Total
Public shareholding (B) |
60142095 |
33.22 |
|
Total
(A)+(B) |
181023496 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
181023496 |
100.00 |
Individual shareholders holding nominal share
capital up to Rs.0.100 millionShareholding of securities (including shares, warrants, convertible securities)
of persons belonging to the category Promoter and Promoter
|
Name of the Shareholder |
Encumbered shares (*) |
Encumbered shares (*) |
|||
|
Details of Shares held |
As a % of grand total (A)+(B)+(C) |
No |
As a percentage |
As a % of |
|
|
M P
Ramachandran |
72112060 |
39.84 |
50500000 |
70.03 |
27.90 |
|
Sahyadri
Agencies Limited |
15000000 |
8.29 |
0 |
0.00 |
0.00 |
|
M P
Divakaran |
7085061 |
3.91 |
0 |
0.00 |
0.00 |
|
M P
Sidharthan |
5215230 |
2.88 |
0 |
0.00 |
0.00 |
|
M R
Deepthy |
5030032 |
2.78 |
0 |
0.00 |
0.00 |
|
M R
Jyothy |
4618084 |
2.55 |
0 |
0.00 |
0.00 |
|
M G
Shanthakumari |
3617954 |
2.00 |
0 |
0.00 |
0.00 |
|
U B Beena |
3446600 |
1.90 |
0 |
0.00 |
0.00 |
|
M P
Divakaran |
1904000 |
1.05 |
0 |
0.00 |
0.00 |
|
K Ullas
Kamath |
1451380 |
0.80 |
0 |
0.00 |
0.00 |
|
Sidharthan
M P |
1320000 |
0.73 |
0 |
0.00 |
0.00 |
|
K K
Sujatha |
81000 |
0.04 |
0 |
0.00 |
0.00 |
|
Total |
120881401 |
66.78 |
50500000 |
41.78 |
27.90 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Name of the Shareholder |
No. of Shares held |
Shares as % of Total
No. of Shares |
|
ICICI
Prudential Life Insurance Company Limited |
6572898 |
3.63 |
|
Fidellity
Management & Research Company Limited
A/c Fidelity Investment Trust Fidelity Series International Small Cap
Fund |
5154431 |
2.85 |
|
Sundaram Mutual
Fund A/c Sundaram Select Midcap |
1998002 |
1.10 |
|
Emblem
FII |
2831184 |
1.56 |
|
PI
Opportunities Fund I |
2303446 |
1.27 |
|
Napean
Trading and Investment Company Private Limited |
2363090 |
1.31 |
|
IDFC
Premier Equity Fund |
2200000 |
1.22 |
|
Morgan
Standley Investment Management Inc A/c Morgan Stanley India Investment Fund
Inc |
1846184 |
1.02 |
|
Total |
25269235 |
13.96 |
Details of Locked-in Shares
|
Name of the Shareholder |
No. of Shares held |
Shares as % of Total
No. of Shares |
|
Sahyadri
Agencies Limited |
1,50,00,000 |
8.29 |
|
Total |
1,50,00,000 |
8.29 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in manufacturing and marketing of fabric whiteners,
soaps, detergents, mosquito repellents, scrubber, bodycare and incense
sticks. |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by management |
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Bankers : |
·
Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan,
227, D, Nariman Point, Mumbai-400021, Maharashtra, India ·
The Federal Bank Limited, Chowallupady Branch,
Thaikkad P.OI. Guruvayur, Thrissur, Taminadu, India ·
The Federal Bank Limited ·
ICICI Bank Limited ·
Axis Bank Limited |
|||||||||||||||||||||||||||
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|
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Facilities : |
Long Term
Borrowings Details of loan: a)
Term Loan from bank has been repaid during the
year. b)
All the Debentures are secured by first charge on
all fixed assets and select Brands (Maxo and Exo). c)
4,000 Rs.1.000 Million Zero coupon
non-convertible redeemable debentures is redeemable at premium of Rs.0.368
Million per debenture after 3 years from the date of allotment i.e. November
14, 2013. d)
650 Rs.1.000 Million 9.65% Secured Redeemable
Non-Convertible Debentures are redeemable at par after 3 years from the date
of allotment i.e. June 21, 2013. e)
500, 10.25% Secured Redeemable Non-Convertible
Debenture are redeemable at par at the end of 3 years and 7 days from the
date of allotment i.e. November 7, 2012. f)
Deferred payment liabilities is repayable over a
period of 3 years in equal installments Short Term
Borrowings Short term loan and bank overdraft carries interest @ 11.50% p.a and
was repayable on demand. The same has been repaid during the year. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
S.R. Batliboi and Associates Chartered Accountants |
|
Address : |
2nd Floor, Jalan Mills Compound, 95 G.K. Marg, Lower Parel
(West), Mumbai-400013, Maharashtra, India |
|
|
|
|
Internal Auditor : |
|
|
Name : |
Mahajan and Aibara Chartered Accountants |
|
|
|
|
Wholly Owned Subsidiaries |
·
Associated Industries Consumer
Products Private Limited |
|
|
|
|
Other Subsidiaries : |
·
Jyothy Kallol Bangladesh Limited ·
Four Seasons Drycleaning Company
Private Limited ·
Snoways Laundrers and Drycleaners
Private Limited ·
Jyothy Consumer Products Marketing
Limited ·
Jyothy Fabricare Services Limited ·
Diamond Fabcare Private
Limited ( Merged with Jyothy Fabricare
Services Limited) ·
Akash Cleaners Private Limited (
Merged with Jyothy Fabricare Services Limited) ·
Fab Clean and Care Private Limited
( Merged with Jyothy Fabricare Services Limited) |
|
|
|
|
Partnership firm : |
·
M/S JFSL-JLL (JV) |
|
|
|
|
Firm / HUF in which the relatives of individual having
control are partners / members / proprietor : |
·
Beena Agencies ·
Quilon Trading Co. ·
Travancore Trading Corp. ·
Tamil Nadu Distributors ·
Deepthy Agencies ·
Sahyadri Agencies ·
Sreehari Stock Suppliers ·
Sujatha Agencies ·
M.P. Divakaran - H.U.F. ·
M.P. Sidharthan - H.U.F. |
|
|
|
|
Enterprises significantly influenced by key management
personnel or their relatives : |
·
Sahyadri Agencies Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2570000000 |
Equity Shares |
Re.1/- each |
Rs.2570.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
181023496 |
Equity Shares |
Re.1/- each |
Rs.181.023 Millions |
Reconciliation of
the number of shares
|
Equity Shares |
Number
of Shares |
Rs In Millions |
|
At the beginning of the period |
161264000 |
161.264 |
|
Issued / Subscribed during the year # |
19759496 |
19.759 |
|
Outstanding at the end of the period |
181023496 |
181.023 |
#During the year, the paid up share capital of the Company has increased
on account of:
i. Issue of 4,759,496 shares (including 2,379,748 bonus shares) on the amalgation of Jyothy Consumer Products Limited
ii. Issue of 15,000,000 shares on preferential allotment basis to Sahyadri Agencies Limited at a premium of Rs.174.15 per equity share.
Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
M. P. Ramachandran |
72112060 |
39.84% |
|
Sahyadri Agencies Limited |
15000000 |
8.29% |
As per of the Company, including its register of shareholders/ members
and other declarations received from shareholders regarding beneficial
interest, the above shareholding represents both legal and beneficial
ownerships of shares.
Terms/ rights attached to equity shares
The Company has only one class of equity shares having par value of Re.1
per share. Each holder of equity shares is entitled to one vote per share. The
Company declares and pays dividends in Indian rupees. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. During the year ended March 31, 2014, the
amount of per share dividend recognized as distributions to equity shareholders
was Rs.3 (2013: Rs.2.50), including interim dividend of Re.1 per equity share
paid during the year. In the event of liquidation of the Company, the holders
of equity shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
Aggregate number of bonus shares issued, shares issued for consideration
other than cash during the period of five years immediately preceding the
reporting date:
|
Equity Shares |
Number of Shares |
|
Equity shares allotted as fully paid bonus shares by capitalization of
securities premium |
2379748 |
|
Equity shares issued for consideration other than cash pursuant to
scheme of amalgamation with Jyothy Consumer Products Limited (JCPL) |
2379748 |
|
Total |
4759496 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
181.023 |
161.264 |
80.632 |
|
(b) Share Capital Suspense |
0.000 |
552.792 |
0.000 |
|
(b) Reserves & Surplus |
8,623.572 |
6,526.173 |
6,654.425 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
8,804.595 |
7,240.229 |
6,735.057 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
5,159.000 |
4,130.000 |
4,300.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
153.379 |
|
(c) Other long term liabilities |
1,472.009 |
0.000 |
27.000 |
|
(d) long-term provisions |
95.242 |
91.768 |
63.176 |
|
Total Non-current Liabilities (3) |
6,726.251 |
4,221.768 |
4,543.555 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
1,260.028 |
1,229.125 |
|
(b) Trade payables |
1,107.004 |
1,143.050 |
632.644 |
|
(c) Other current
liabilities |
355.561 |
1,018.997 |
149.858 |
|
(d) Short-term provisions |
674.749 |
705.062 |
278.982 |
|
Total Current Liabilities (4) |
2,137.314 |
4,127.137 |
2,290.609 |
|
|
|
|
|
|
TOTAL |
17,668.160 |
15,589.134 |
13,569.221 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2,659.325 |
2,616.090 |
1,947.220 |
|
(ii) Intangible Assets |
3,640.103 |
4,098.845 |
87.138 |
|
(iii) Capital
work-in-progress |
34.835 |
32.671 |
28.181 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
939.189 |
247.073 |
3,454.669 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
6,552.868 |
4,943.588 |
5,485.792 |
|
(e) Other Non-current assets |
5.304 |
1.305 |
2.359 |
|
Total Non-Current Assets |
13,831.624 |
11,939.572 |
11,005.359 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
594.546 |
0.000 |
322.429 |
|
(b) Inventories |
1,611.920 |
1,674.464 |
792.819 |
|
(c) Trade receivables |
556.304 |
1,099.570 |
425.155 |
|
(d) Cash and cash
equivalents |
555.784 |
381.359 |
509.940 |
|
(e) Short-term loans and
advances |
482.109 |
453.661 |
491.401 |
|
(f) Other current assets |
35.873 |
40.508 |
22.118 |
|
Total Current Assets |
3,836.536 |
3,649.562 |
2,563.862 |
|
|
|
|
|
|
TOTAL |
17,668.160 |
15,589.134 |
13,569.221 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12,601.793 |
10,191.917 |
6,634.468 |
|
|
|
Other Income |
44.702 |
9.925 |
45.110 |
|
|
|
Interest Income |
517.641 |
481.560 |
520.260 |
|
|
|
TOTAL (A) |
13,164.136 |
10,683.402 |
7,199.838 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3,656.092 |
3,243.961 |
2,248.880 |
|
|
|
Purchases of Stock-in-Trade |
3,054.963 |
3,002.212 |
1,472.618 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
54.983 |
(569.477) |
4.382 |
|
|
|
Employees benefits expense |
1,186.573 |
1,105.618 |
780.218 |
|
|
|
Share in loss of Partnership Firm |
3.087 |
0.000 |
0.000 |
|
|
|
Other expenses |
2,975.236 |
2,165.180 |
1,296.944 |
|
|
|
Prior period item |
0.000 |
18.271 |
0.000 |
|
|
|
Exceptional item |
23.007 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
10,953.941 |
8,965.765 |
5,803.042 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2,210.195 |
1,717.637 |
1,396.796 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
531.134 |
660.827 |
194.325 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1,679.061 |
1,056.810 |
1,202.471 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
616.041 |
616.452 |
170.319 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1,063.020 |
440.358 |
1,032.152 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1.879 |
0.000 |
196.996 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1,061.141 |
440.358 |
835.156 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
454.314 |
674.554 |
273.679 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
120.000 |
50.000 |
200.000 |
|
|
|
Proposed Dividend |
362.047 |
415.059 |
201.580 |
|
|
|
Tax on Proposed Dividend |
61.530 |
70.539 |
32.701 |
|
|
|
Interim dividend |
181.023 |
0.000 |
0.000 |
|
|
|
Tax on Interim dividend |
30.765 |
0.000 |
0.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
537.251 |
125.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
222.839 |
454.314 |
674.554 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
119.140 |
89.074 |
87.298 |
|
|
TOTAL EARNINGS |
119.140 |
89.074 |
87.298 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
45.407 |
76.407 |
2.091 |
|
|
|
Capital Goods |
34.495 |
0.474 |
0.657 |
|
|
TOTAL IMPORTS |
79.902 |
76.881 |
2.748 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.21 |
2.65 |
10.36 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
8.06 |
4.12 |
11.60 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.44 |
4.32 |
15.56 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.37 |
2.88 |
10.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.06 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.59 |
0.74 |
0.82 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.80 |
0.88 |
1.12 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
80.632 |
161.264 |
181.023 |
|
Reserves & Surplus |
6654.425 |
6526.173 |
8623.572 |
|
|
0.000 |
552.792 |
0.000 |
|
Net
worth |
6735.057 |
7240.229 |
8804.595 |
|
|
|
|
|
|
long-term borrowings |
4300.000 |
4130.000 |
5159.000 |
|
Short term borrowings |
1229.125 |
1260.028 |
0.000 |
|
Total
borrowings |
5529.125 |
5390.028 |
5159.000 |
|
Debt/Equity
ratio |
0.821 |
0.744 |
0.586 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
6,634.468 |
10,191.917 |
12,601.793 |
|
|
|
53.621 |
23.645 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
6,634.468 |
10,191.917 |
12,601.793 |
|
Profit |
835.156 |
440.358 |
1,061.141 |
|
|
12.59% |
4.32% |
8.42% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS NOT AVAILABLE
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
Case Details |
||||||||||
|
Bench:- Bombay |
||||||||||
|
Presentation Date:- |
03/12/2013 |
|||||||||
|
Lodging No.:- |
CPL/825/2013 |
Filing Date:- |
03/12/2013 |
Reg. No.:- |
CP/153/2014 |
Reg. Date:- |
26/02/2014 |
|||
|
|
||||||||||
|
Petitioner:- |
VVF (INDIA) LIMITED |
Respondent:- |
JYOTHY LABORATORIES LIMITED (CIN NO.: L24240MH1992PLC128651) |
|||||||
|
Petn.Adv:- |
DHRUVE LILADHAR AND COMPANY () |
Resp. Adv.: |
0 (0) |
|||||||
|
District:- |
MUMBAI |
|||||||||
|
|
||||||||||
|
Bench:- |
SINGLE |
|||||||||
|
Status:- |
Pre-Admission |
Category:- |
COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT |
|||||||
|
Next Date:- |
21/08/2014 |
Stage:- |
COMPANY PETITIONS FOR ADMISSION |
|||||||
|
Last Date:- |
06/01/2014 |
|
||||||||
|
Coram:- |
ACCORDING TO SITTING LIST |
|||||||||
|
|
|
|||||||||
|
Act :- |
Companies Act and Rules 1956 |
Under Section:- |
433 (E) 434 439 |
|||||||
CHARGES:
|
Entity |
Person |
Competent Authority |
Regulatory Charges |
Regulatory Action(S) / Date
Of Order |
Further Developments |
|
JYOTHY
LABORATORIES LIMITED (ALONG
WITH : JYOTHY CONSUMER PRODUCTS LIMTED) |
|
SEBI |
DID NOT
COMPLY WITH MINIMUM PUBLIC SHAREHOLDING REQUIREMENT |
DEBARRED/RESTRAINED
FROM BUYING /SELLING /DEALING /IPOS IN SECURITIES/ SPECIFIED SCRIPS DIRECTLY
/INDIRECTLY FROM 04-JUN-2013 TILL COMPLIANCE MINIMUM PUBLIC SHAREHOLDING
REQUIREMENT |
SEBI VIDE
ITS ORDER DATED 08/08/2013 ABATED THE PROCEEDINGS INITIATED VIDE ITS ORDER
DATED 04/06/2013 WITH IMMEDIATE EFFECT |
|
JYOTHY
LABORATORIES LIMITED |
|
BSE |
DID NOT SUBMIT
SHAREHOLDING PATTERN UNDER PROVISIONS OF CLAUSE 35 FOR THE QUARTER ENDED
31-MARCH-2008 |
PUT UP ON
BSE WEBSITE FOR PUBLIC NOTICE |
NOT
APPEARING IN THE LIST FOR THE QUARTER ENDED 30-JUNE-2008 |
UNSECURED LOAN:
|
Particulars |
31.03.2014 Rs.
In Millions |
31.03.2013 Rs.
In Millions |
|
Long Term
Borrowings |
|
|
|
Deferred sales tax loan |
9.000 |
18.000 |
|
Short Term
Borrowings |
|
|
|
Commercial Paper |
0.000 |
641.120 |
|
Total |
9.000 |
659.120 |
Note:
Commercial Paper has been repaid during the year.
BACKGROUND
The Company is a public company incorporated on January 15, 1992 under
the provisions of the Companies Act, 1956. The Company is principally engaged in
manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito
repellents, scrubber, bodycare and incense sticks.
COMPANY OVERVIEW
Jyothy Laboratories came
into being in 1983 and has grown to become a multi-brand, multi-product company
with operations all over the nation. The Company has its presence in the fabric
care, household insecticide, dishwash, personal care and other home care
segments.
The company has the distinction of making a mark in the
virtually non-existent category of liquid fabric whitener. With products that
are reasonably priced, conveniently packaged, extensively distributed and
supported by strategic communication, Jyothy Laboratories has established a
strong presence in the market as well as in the minds of millions of households
in India.
Today, Jyothy Laboratories has a pan Indian presence with
brands catering to the needs of consumers across the length and breadth of the
nation. The group today has a turnover of over Rs.13000.000 Millions. All
manufacturing facilities and personnel are sensitised to ensure minimal
wastage, promote environmental conservation and maintain high quality
standards.
PERFORMANCE
During the year, the sales of soaps and detergents was Rs.9532.365
Millions compared to Rs.7559.459 Millions in previous year and the sales in
homecare segment grew to Rs.2913.197 Millions compared to Rs.2449.086 Millions
in previous year. The profitability of Soaps and Detergents segment improved to
Rs.1269.318 Millions from Rs.765.471 Millions in the previous year. The
profitability in homecare segment improved to Rs.833.76 Millions from Rs.794.13
Millions in the previous year.
GLOBAL OVERVIEW
The US witnessed
broad-based growth across sectors while the UK gradually emerged from recession
during the last fiscal year. Japan experienced high growth on account of its
Abenomics policy powered by monetary easing and public spending. Growth in the
Eurozone remained uneven, and struggled to gain momentum. Speculation about the
withdrawal of quantitative easing in the US led to capital flight and currency
depreciation, hurting developing countries in their financial markets.
Most emerging economies adjusted through depreciated
currencies and higher interest rates. Going forward, lower commodity prices are
good for the emerging world’s commodity importers; so are rising demands for
exports from developed markets. However, policy makers still need to
re-energise the domestic demand story. ‘
For FY 2013-14 as a
whole, India’s current account deficit declined significantly to 1.7% of the
GDP (Source: RBI Bi-monthly policy statement, June 2014). This was largely due
to shrinking import demand, reduced gold imports and revival of export growth.
India has created adequate buffers of forex reserves, with an increase in portfolio
investments in India.
The RBI has allowed
foreign portfolio investors to participate in the domestic exchange traded
currency derivatives market to the extent of their underlying exposures plus an
additional US$ 10 million. This will improve the depth and liquidity in forex
markets.
With sensible reining of expenditures and containing fiscal
deficit at 4.6% of GDP, India can now accelerate the pace of reforms in
2014-15. (Source: Department of Economic Affairs). Comprehensive policy actions
and revival in aggregate demand should help India move forward on the path to
sustained growth
Structural reforms in China geared to making growth more
consumption-driven and gradual tightening of the monetary policy in US, if
orchestrated rightly can give a further fillip to global growth.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10482475 |
13/02/2014 * |
4,000,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India |
B98512098 |
|
2 |
10487359 |
06/01/2014 * |
650,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India |
C04475844 |
|
3 |
10410578 |
07/02/2013 * |
500,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India |
B71948707 |
|
4 |
10364193 |
06/01/2014 * |
1,000,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India |
B94795010 |
|
5 |
80045769 |
15/05/2008 * |
100,000,000.00 |
Standard Chartered Bank |
19, Rajaji Salai, Chennai, Tamil Nadu - 600001, India |
A39319082 |
|
6 |
90300901 |
29/09/1999 |
60,000,000.00 |
DEUTSCHE BANK |
Brook House 9 Shakeapeare Sarani, Calcutta, West Bengal - 700071, India |
- |
|
7 |
80055469 |
08/05/1941 |
94,800,000.00 |
UNITED BANK OF INDIA |
Netaji Subhas Road Branch, 67a Netaji Subhas Road, Calcutta, West Bengal - 700001, India |
- |
* Date of charge modification
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Dies and Moulds
·
Furniture and Fixture
·
Office Equipments
·
Vehicles
·
Goodwill
·
Trademark and Copyrights
·
Knowhow
·
Software and Licenses
PRESS
RELEASE:
JYOTHY
LABORATORIES LIMITED Q4FY14 NET SALES UP 21.24% AT RS. 3299.100 MILLIONS
Q4FY4 v/s Q4FY13
·
Net Sales at Rs.3299.100 Millions, up 21.24%
·
Net Profit at Rs.291.700 Millions, up 146.80%
·
EBIDTA margin at 10.13% v/s12.59%
·
EPS at Rs.1.71 v/s Rs.0.71, growth of 140%
FY14 v/s FY13
·
Net Sales at Rs.125.510 Millions, up 23.37%
·
Net Profit at Rs.10.611 Millions, up 140.97%
·
EBIDTA margin at 13.31% v/s 12.23%
·
EPS at Rs.6.21 v/s Rs.2.65 growth of 134.1%
Mumbai, May 22, 2014:
Jyothy Laboratories Limited
(JLL), the home grown Indian FMCG company, today reported Net Sales of
Rs.3299.100 Millions for the fourth quarter ended March 31st, 2014
as against Rs.2721.200 Millions for the corresponding period; a rise of 21.24%.
Net Profit for the period under consideration stood at Rs.291.700 Millions up
by 146.80%, as against Rs118.200 Millions in the same period of last fiscal.
The EBIDTA margin for the quarter was at 10.13% as against 12.59%
reported in Q4FY13.
EPS rose to Rs.1.71 in Q4FY14 as against Rs.0.71 in the same period of
last fiscal.
For the full year, Net Sales stood at Rs.12551.000 Millions compared to
Rs.10173.800 Millions in FY13; an increase of 23.37%. Net profit for the same
period rose to Rs.1061.100 Millions compared to Rs.440.400 Millions in the same
period of last fiscal a rise of 140%.1.
EBIDTA margin for the year was at 13.31% as against 12.23% in FY13.
EPS for the twelve months period was reported at Rs.6.21 as against
Rs.2.65 in FY13.The Board of Directors have recommended a final dividend of
Rs.2 per equity share of Re.1/- each for the year ended March 31, 2014. Further
an interim dividend of Re 1 per equity share was paid during the year. Total
Dividend proposed/paid is Rs.3 per equity share (300%) compared to previous
year where Rs.2.5 per equity share was paid (250%). The payment of dividend is
subject to approval of shareholders.
Segmental Performance (Q4FY14 v/s Q4FY13):
Soaps and Detergent business, which includes
brands like Ujala, Henko, Exo, Pril,
Margo, Mr. White and Chek, stood at Rs.2277.700 Millions during the
quarter compared to Rs.1829.500 Millions during the same period last year; up
by 24.5%. Ujala fabric whitener continues to be the market leader with a market
share of 72.5% by value as on December 2013.
Home Care, which includes mosquito repellant Maxo and Exo scrubber, saw revenues for the
quarter ended 31st March 2014 at Rs.990.600 Millions up 18.03% as
against Rs.839.300 Millions during the same period last year.
Others, which include brands like Fa and Neem, saw revenue increase of 24% at Rs.64.800 Millions against
Rs.52.400 Millions for the quarter ended March 31st, 2014.
Commenting on the company’s results, Mr. M P
Ramachandran – Chairman and Managing Director, Jyothy Laboratories Limited.
said, “We have sustained our growth momentum despite
inflationary pressures, rising input costs and moderation in demand. Our
sustained focus on enhancing visibility of our brands through marketing
exercise and advertising spends has helped us to deliver above industry growth.
Our portfolio will get further boost with the launch of innovative products in
FY15.”
“Going forward, we expect growth rate to
sustain on the sales and margin front. We continue to enhance our market share
in the urban market, without losing our focus in the rural market.” he further added.
JYOTHY
LABS RAISES RS.2630.000 MILLIONS VIA PREFERENTIAL ALLOTMENT
Home-grown consumer goods company Jyothy
Laboratories Limited (JLL) today said it has raised Rs.2630.0000 Millions via
preferential allotment of shares to a promoter Group firm.
The city-based company has allotted 15 Millions equity shares of Re 1 each at a
price of Rs.175.15 per equity share to Sahayadri Agencies Limited.
Post allotment, the paid up equity share capital of Jyothy Labs has increased
to Rs.1810.000 Millions from Rs.166.000 Millions. With this the promoter
holding in JLL has gone up from 63.69% to 66.7%, a company release said here.
"Post successful integration with Henkel India it was the right time to
invest in existing brands and also expand JLL's portfolio. The preferential
allotment of shares along with NCDs to a clutch of investors will help JLL to
save the yearly interest burden of about Rs.600.000 Millions, leaving a cash
balance of about Rs.2500.000 Millions, Jyothy Labs
Joint Managing Director Ullas Kamath said.
"The fund will be utilised for the organic and inorganic growth of the
company," he said.
The FMCG firm last month raised Rs.4000.000 Millions through zero coupon
non-convertible debentures (NCDs) payable after three years.
The amount raised through preferential allotment has been used to repay the
term loan of approximately Rs.4000.000 Millions, the release said.
The news of preferential allotment boosted Jyothy Labs shares. The stock ended
the day at Rs.199.70, up 5.86% on the BSE. In intra-day, the scrip jumped
10.25% to Rs.208.
DEBT-FREE
JYOTHY LABS REVEALS ITS ACQUISITION PLANS
After having raised Rs.2625.000 Millions through preferential allotments
and with the addition of Rs.4000.000 Millions- worth Negotiable Certificate of
Deposits (NCDs), FMCG company Jyothy Labs is now debt-free.
Speaking to CNBC-TV18, Ullas Kamath, joint managing director, Jyothy
Labs says the company now has a war chest of Rs.2500.000 Millions which it will
use to expand inorganically.
Also read: Jyothy Labs up 10% on preferential allotment to Sahyadri
“Yes, we have identified some of the brands but it is too early for me
to comment on that. But like any other growing company, inorganic growth is
best way to grow in India and which we demonstrated by our acquiring Henkel and
now that it is behind us, we thought, why not. Also the new management team is
in place and the products are in place, it is the right time for us to grow,”
adds Kamath who has a one year timeline for the acquisition.
Below is the edited transcript of Kamath’s interview to CNBC-TV18
Q: Take us through this preferential allotment and how will you utilise
this money?
A: This preferential allotment is to the promoter group at Rs.175 and we
have brought in Rs.2625.000 Millions against this preferential allotment. We had
raised Rs.4000.000 Millions of Negotiable Certificate of Deposits (NCD) coupon
payable after three years. With that, we have now Rs.6620.000 Millions coming
into the company with which we have paid off all the debts now. The reason for
raising this money, one to have the war chest into the company that we have now
about Rs.2500.000 Millions of bank balance now which will help us to grow to
the next level and we are also seeing any opportunity for inorganic growth. So,
the reason is mainly to grow the business and also the interest what we used to
pay about Rs.600.000 Millions every year which is about 4 EPS wont be there
from this quarter onwards.
Q: About the inorganic growth, can you give us some more details about
or throw some more light on whether anything is planned in 2014 itself and what
could we be looking at?
A: Like any other growing company, we keep looking at any other
opportunities available, now that we have acquired Henkel and we have seen
Henkel become a game changer for Jyothy in a way if you see. So, we are
extremely happy to look at any probable inorganic growth opportunity especially
in India and with the regional brand. So we are keeping ourself ready with the
war chest of Rs.2500.000 Millions and now balance sheet is completely now free
of all the debt. We are hoping to do something in the coming year.
Q: Within which segment are you looking at for inorganic growth, will it
be in the soaps and detergents segment or will it be in the other homecare
segment, anything that you have identified yet?
A: We will be extremely happy if it is in the fabric care segment but we
don't mind going with other categories as long as it becomes a synergised
product with the sales distribution and manufacturing setup what we have. So,
we will not be going completely outside from where we are now but in case we
get a product which can fit in our existing portfolio, I will be extremely
happy. We are especially looking at regionally strong brands.
Q: Have you zeroed in on anything because the problem with this space is
that not too many players and if there are, the deals normally happen at very
high prices and sometimes the synergies are not good enough at that price, are
there any particular targets that you have in mind?
A: At this point in time we do not want to discuss about it. It is not
just a valuation, we need to see how it adds value to our existing setup. It
takes time and it is always better to have the money in the bank first and then
start talking to people. Yes, we have identified some of the brands but it is
too early for me to comment on that. But like any other growing company,
inorganic growth is best way to grow in India and which we demonstrated by our
acquiring Henkel and now that it is behind us, we thought, why not. Also the new
management team is in place and the products are in place, it is the right time
for us to grow.
JYOTHY
LABORATORIES' HENKEL ACQUISITION PAYS OFF IN 2 YEARS
In 2011, when Jyothy Laboratories, which makes soaps, detergents, fabric
whiteners and home insecticides, announced that it's
acquiring stake in loss-making Henkel India, its stock tanked almost 20%. Every
equity research outfit thought it was a crazy thing to do and put a 'Sell'
recommendation on it.
Henkel India's revenues were Rs.4000.000 Millions
and it was making a loss of Rs.6000.000 Millions, while Jyothy's revenues were
at Rs.6000.000 Millions and its profit after tax, Rs.740.000 Millions.
"The whole world was negative about this acquisition except me and my
chairman," recalls Ullas Kamat, joint managing director of Jyothy Labs.
"Without looking at the company's profit and
loss statement, we asked ourselves if we could generate 14-15% operating
margins on their products. The answer was yes. They had 7 strong brands which
had survived for more than 25 years, but were just not managed well. Henkel
India's operating margins were at -4.4% then," says Kamat.
Their optimism wasn't misplaced, and in less than two years of acquisition, the company turned around Henkel India.
"We realised that Henkel was spending too much on ads, and its sales were
more geared towards urban India. At the same time, our strength was in rural
areas. This all-India brand recognition made it easy for us to take Henkel's
products to the rural markets," explains Kamat.
Moreover, Jyothy Labs trimmed Henkel's staff strength to 50 from 475.
Many of them retired voluntarily as they were expats and didn't want to work
for an Indian company. Jyothy also roped in Raghunandan S, current CEO of
Jyothy and ex-Reckitt India head, and more than 200 people from big consumer
companies, including HUL, Dabur, PandG, Cadbury, Marico and Paras.
"I give a lot of credit to Raghunandan for the turnaround,"
says Kamat. "He helped us improve the entire working
capital cycle. Our distributor margin is down to 6% from 8% earlier. He
improved our procurement and saved on costs."
All this helped the company achieve 8% efficiency, which means on a top
line of Rs.12000.000 Millions, it saved almost Rs.1000.000 Millions. This helped
it improve profitability and at the same time allowed high ad spends. In the
last two years, it has almost doubled its ad spends from 5-6% of sales to 10%
now.
The result is also reflected in numbers. In the first nine months of
FY14, Jyothy's sales were up 24% at Rs.9250.000 Millions, and profit after tax
139% at Rs.770.000 Millions, year-on-year. The company's stock has outperformed
the BSE FMCG Index by 30% in the past six months. Going forward, Jyothy Labs is
confident of delivering strong growth. "We will grow our top line by at
least 25%, and bottom line by 35-40% over the next couple of years," says
Kamat, adding, "We are hungry to deliver."
On Thursday, Jyothy Labs stocks slipped a tad to close at Rs 207.20 on
BSE from its previous close of Rs.207.25.
Confident than ever before, the company is looking at more acquisitions.
"We are already talking to a few regional companies and are comfortable
with an acquisition of around Rs.5000.000 Millions. You can expect an
announcement in the June quarter." But this time, we won't be diluting our
equity - it will be mostly funded through internal accruals and debt, Kamat
adds.
HOW
JYOTHY LABORATORIES SILENCED SCEPTICS
Soon after homegrown Jyothy Laboratories acquired Henkel’s India
business in May 2011, joint managing director Ullas Kamath went on a month-long
road trip across the country. Kamath remembers that as being a lonely time,
with only his driver for company. Just as well, though, as it was also a time
for introspection and ideation.
Consider that Kamath, along with his boss MP Ramachandran, the
chairman-promoter of Jyothy, had just engineered a takeover that left many in
the industry stunned. For a bargain basement price of Rs.6850.000 Millions, Henkel AG had sold its Indian consumer products business
to Jyothy, which hadn’t yet completed three decades of operations.
No one doubted that Jyothy had come a long way since it was founded in 1983.
However, it was still considered a one-hit wonder with Ujala, its fabric
whitener, as the cash cow. The markets feared that Jyothy had bitten off more
than it could chew. How could a domestic company successfully revive an ailing
multinational that had accumulated losses of around Rs.6000.000 Millions Did
they have the management bandwidth or the marketing budgets? What about the
RandD set up that would spur innovation—a key factor in the success of consumer
franchises?
In the months that followed, the doubts manifested in Jyothy’s stock price
which took a beating, erasing almost 40 percent of its market cap. The sceptics
were vindicated—but not for long.
Not one to be fazed by the noise around him, Kamath, who had been keeping a
close eye on Henkel, had an integration plan all laid out in his head. But to
begin with, he knew that rallying the sales force (known internally in the
company as its ‘white army’) was what would eventually make the difference
between success and failure. On that journey, Kamath crisscrossed the country,
making it a point to spend the nights in the homes of his salespersons. “I
wanted them to feel like they were the most important people in the company,”
he says.
Two-and-a-half years on, his efforts have borne fruit. Jyothy is on course to
cross Rs.10000.000 Millions in revenue. Its EBITDA (earnings before interest,
taxes, depreciation, and amortisation) margins—a key measure of a consumer
goods company’s health—are at 14.5 percent, up from
9 percent. It has also charted out an aggressive growth path. So much so that
Ramachandran and Kamath are already mapping out the road ahead. Their
destination: Rs.50000.000 Millions in sales in the next five years.
Integrating Henkel
When Jyothy inked the Henkel deal in May 2011, here’s what it bought: The
Indian subsidiary of a German multinational that had been operating in India
for the last 22 years. During that time it had never been profitable and, with
a top line of Rs.4000.000 Millions, its losses stood at RS.400.000 Millions a
year. Over the years, it had lost over Rs.6000.000 Millions, a sorry legacy for
a prospective buyer to have to take over. Its brands, Henko (detergent), Pril
(utensil cleaner) and Margo (soap), were seen as laggards and had never been
backed up with significant marketing spends.
But for Kamath all that mattered was the gross margin. And all of Henkel’s brands
had gross margins of over 25 percent. Some like Margo, a small soap brand with
a fanatical following, exceeded 50 percent. A state-of-the-art detergent plant
in Karaikal near Pondicherry was part of the deal too. Henkel’s accumulated
losses of Rs 6000.000 Millions were also transferred to Jyothy’s books
This, however, was not a worry for Kamath. Jyothy, which had followed a
dispersed manufacturing model, had 22 plants across the country. While setting
these up, the company had been granted tax breaks that would expire over the
next few years.
Kamath could set off the Rs.6000.000 Millions against this tax liability. The
company also had real estate worth at least Rs.1000.00 Millions. Further, from
Henkel’s staff strength of 475 people, Kamath believed he would need to retain
no more than 50.
“This was the time when Paras had been sold for eight times its sales [to
Reckitt Benckiser]. And here I was buying a company for one-and-a-half times
its sales value… no one was convinced,” says Kamath.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.102.87 |
|
UK Pound |
1 |
Rs.81.44 |
|
Euro |
1 |
Rs.60.23 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
64 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.