MIRA INFORM REPORT
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Report No. : |
313083 |
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Report Date : |
18.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
JYOTHY LABORATORIES LIMITED (w.e.f. 12.08.1996) |
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Formerly Known
As : |
JYOTHY LABORATORIES PRIVATE LIMITED (w.e.f. 15.01.1992) JYOTHY LABORATORIES |
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Registered
Office : |
Ujala House, Ram Krishna Mandir Road, Kondivita, Andheri (East),
Mumbai-400059, Maharashtra |
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Country : |
India |
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Financials (as on)
: |
31.03.2014 |
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Date of
Incorporation : |
15.01.1992 |
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Com. Reg. No.: |
11-128651 |
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Capital
Investment / Paid-up Capital : |
Rs.181.023 Million |
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CIN No.: [Company Identification
No.] |
L24240MH1992PLC128651 |
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TIN No.: |
Not Available |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMJ05484D |
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PAN No.: [Permanent Account No.] |
Not Available |
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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, body care and
incense sticks. |
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No. of Employees
: |
Information denied by management |
RATING & COMMENTS
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MIRA’s Rating : |
A (64) |
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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 |
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Status : |
Good |
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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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Non-Convertible Debenture = AA- |
|
Rating Explanation |
High degree of safety and very low credit
risk |
|
Date |
20.10.2014 |
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
Management Non Co-Operative (Tel No.: 91-22-66892800)
LOCATIONS
|
Registered Office / Corporate Office : |
Ujala House, Ram Krishna Mandir Road, Kondivita, Andheri (East), Mumbai-400059,
Maharashtra, India |
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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 |
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Designation : |
Chairman and Managing Director |
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Address : |
403 Shagun Tower, Winga Gen. A.K. Vaidya Marg, Yashodham, Goregaon
(East), Mumbai-400063, Maharashtra, India |
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Date of Birth/Age : |
22.08.1946 |
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Qualification : |
Postgraduate Degree in Financial Management |
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Date of Appointment : |
15.01.1992 |
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DIN No.: |
00553406 |
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Name : |
Mr. K. Ullas Kamath |
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Designation : |
Joint Managing Director |
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Address : |
Flat No. 202, No. 40, Renaissance Mangalam, 13th Cross Between 10 and 11th
Main Malleswaram, Bangalore-560003, Karnataka, India |
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Qualification : |
M.Com., F.C.A., A.C.S., L.L.B., A.M.P. – Wharton Business School and
Harward Business School |
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Date of Birth/Age : |
01.01.1963 |
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Date of Appointment : |
26.03.1997 |
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DIN No.: |
00506681 |
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Name : |
Mr. S. Raghunandan |
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Designation : |
Whole Time Director and Chief Executive Officer |
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Date of Birth/Age : |
49 Years |
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Qualification : |
MBA |
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DIN No.: |
02263845 |
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Name : |
Mrs. M.R. Jyothy |
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Designation : |
Whole Time Director |
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Address : |
403 Shagun Tower, Winga Gen.
A.K. Vaidya Marg, Yashodham, Goregaon (East), Mumbai-400063, Maharashtra,
India |
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Date of Birth/Age : |
14.01.1978 |
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Date of Appointment : |
24.10.2005 |
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DIN No.: |
00571828 |
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Name : |
Mr. Nilesh B Mehta |
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Designation : |
Independent Director |
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Address : |
203 Tulsi Villa, Podar Road,
Santacruz (West), Mumbai-400054, Maharashtra, India |
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Date of Birth/Age : |
24.04.1962 |
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Date of Appointment : |
07.02.2003 |
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DIN No.: |
00199071 |
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Name : |
Mr. K P Padmakumar |
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Designation : |
Independent Director |
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Address : |
House No. 5B, JM Paradise,
Palarivattom P.O. Ernakulam-682025, Kerala, India |
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Date of Birth/Age : |
20.04.1944 |
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Date of Appointment : |
25.09.2007 |
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DIN No.: |
00023176 |
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Name : |
Mr. Bipin Ratanlal Shah |
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Designation : |
Independent Director |
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Address : |
8-D, IL Palazzo, Little Gibbs
Road, Malabar Hill, Mumbai-400006, Maharashtra, India |
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Date of Birth/Age : |
16.07.1932 |
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Date of Appointment : |
25.09.2007 |
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DIN No.: |
00006094 |
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Name : |
R. Lakshminarayanam |
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Designation : |
Independent Director |
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Date of Birth/Age : |
58 Years |
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Qualification : |
Master of Science in Industrial Chemistry |
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DIN No.: |
00238887 |
KEY EXECUTIVES
|
Name : |
Mr. M.L. Bansal |
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Designation : |
Company Secretary / Chief Financial Officer |
|
Address : |
801, Marathon Galaxy-I, L.B.S. Marg, Mulund (West), Mumbai-400080,
Maharashtra, India |
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Date of Birth/Age : |
15.03.1948 |
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Date of Appointment : |
31.07.2002 |
SHAREHOLDING PATTERN
As on 31.12.2014
|
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 |
|
|
|
|
|
|
|
|
7849934 |
4.34 |
|
|
53285 |
0.03 |
|
|
6623583 |
3.66 |
|
|
19331570 |
10.68 |
|
|
8630279 |
4.77 |
|
|
8630279 |
4.77 |
|
|
42488651 |
23.47 |
|
|
|
|
|
|
6369161 |
3.52 |
|
|
|
|
|
|
10205903 |
5.64 |
|
|
131220 |
0.07 |
|
|
1000 |
0.00 |
|
|
946160 |
0.52 |
|
|
830 |
0.00 |
|
|
199988 |
0.11 |
|
|
15016 |
0.01 |
|
|
584351 |
0.32 |
|
|
145975 |
0.08 |
|
|
17653444 |
9.75 |
|
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 |
0.00 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Promoter and Promoter Group
|
Name of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
M P Ramachandran |
72112060 |
39.84 |
|
Sahyadri Agencies Limited |
15000000 |
8.29 |
|
M P Divakaran |
7085061 |
3.91 |
|
M P Sidharthan |
5215230 |
2.88 |
|
M R Deepthy |
5030032 |
2.78 |
|
M R Jyothy |
4618084 |
2.55 |
|
M G Shanthakumari |
3617954 |
2.00 |
|
U B Beena |
3446600 |
1.90 |
|
M P Divakaran |
1904000 |
1.05 |
|
K Ullas Kamath |
1451380 |
0.80 |
|
Sidharthan M P |
1320000 |
0.73 |
|
K K Sujatha |
81000 |
0.04 |
|
Total |
120881401 |
66.78 |
(*) The term encumbrance has the same meaning as assigned to
it in regulation 28(3) of the SAST Regulations, 2011.
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
Shareholder |
No. of Shares |
Percentage
of Holding |
|
ICICI Prudential Life Insurance Company Limited |
6096195 |
3.37 |
|
Fidellity Management and Research Company Limited A/c Fidelity
Investment Trust Fidelity Series International Small Cap Fund |
3841337 |
2.12 |
|
Emblem FII |
2831184 |
1.56 |
|
PI Opportunities Fund I |
2303446 |
1.27 |
|
Napean Trading and Investment Co Private Limited |
2363090 |
1.31 |
|
Morgan Stanley Investment Management Inc A/c Morgan
Stanley India Investment Fund Inc |
1951809 |
1.08 |
|
L And T Mutual Fund Trustee Limited- L And T Tax Advantage
Fund |
2425427 |
1.34 |
|
Total |
21812488 |
12.05 |
Details of Locked-in Shares
|
Name of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
Sahyadri Agencies Limited |
15000000 |
8.29 |
|
Total |
15000000 |
8.29 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in manufacturing and marketing of fabric whiteners,
soaps, detergents, mosquito repellents, scrubber, body care and incense
sticks |
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Products : |
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Brand Names : |
-- |
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Agencies Held : |
-- |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information denied by management |
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Bankers : |
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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. |
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Statutory Auditors : |
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Name : |
S.R. Batliboi and Associates Chartered Accountants |
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Address : |
2nd Floor, Jalan Mills Compound, 95 G.K. Marg, Lower Parel
(West), Mumbai-400013, Maharashtra, India |
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Internal Auditor : |
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|
Name : |
Mahajan and Aibara Chartered Accountants |
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Memberships : |
-- |
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Collaborators : |
-- |
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Wholly Owned Subsidiaries |
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Other Subsidiaries : |
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Partnership firm : |
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Firm / HUF in which the relatives of individual having control
are partners / members / proprietor : |
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Enterprises significantly influenced by key management
personnel or their relatives : |
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CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2570000000 |
Equity Shares |
Re.1/- each |
Rs.2570.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
181023496 |
Equity Shares |
Re.1/- each |
Rs.181.023 Million |
Reconciliation of
the number of shares
|
Equity Shares |
Number
of Shares |
Rs In Million |
|
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 Million]
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) Reserves & Surplus |
0.000 |
552.792 |
0.000 |
|
(c) Money
received against share warrants |
8,623.572 |
6,526.173 |
6,654.425 |
|
|
0.000 |
0.000 |
0.000 |
|
(2) Share Application money pending
allotment |
|
|
|
|
Total
Shareholders’ Funds (1) + (2) |
0.000 |
0.000 |
0.000 |
|
|
8,804.595 |
7,240.229 |
6,735.057 |
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
|
|
|
(b) Deferred tax liabilities (Net) |
5,159.000 |
4,130.000 |
4,300.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
153.379 |
|
(d) long-term
provisions |
1,472.009 |
0.000 |
27.000 |
|
Total Non-current
Liabilities (3) |
95.242 |
91.768 |
63.176 |
|
|
6,726.251 |
4,221.768 |
4,543.555 |
|
(4) Current
Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
|
|
|
(b) Trade
payables |
0.000 |
1,260.028 |
1,229.125 |
|
(c) Other
current liabilities |
1,107.004 |
1,143.050 |
632.644 |
|
(d) Short-term
provisions |
355.561 |
1,018.997 |
149.858 |
|
Total Current
Liabilities (4) |
674.749 |
705.062 |
278.982 |
|
|
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 |
|
|
|
|
(ii)
Intangible Assets |
2,659.325 |
2,616.090 |
1,947.220 |
|
(iii)
Capital work-in-progress |
3,640.103 |
4,098.845 |
87.138 |
|
(iv)
Intangible assets under development |
34.835 |
32.671 |
28.181 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
939.189 |
247.073 |
3,454.669 |
|
(d) Long-term Loan and Advances |
0.000 |
0.000 |
0.000 |
|
(e) Other
Non-current assets |
6,552.868 |
4,943.588 |
5,485.792 |
|
Total Non-Current
Assets |
5.304 |
1.305 |
2.359 |
|
|
13,831.624 |
11,939.572 |
11,005.359 |
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
|
|
|
(b)
Inventories |
594.546 |
0.000 |
322.429 |
|
(c) Trade
receivables |
1,611.920 |
1,674.464 |
792.819 |
|
(d) Cash
and cash equivalents |
556.304 |
1,099.570 |
425.155 |
|
(e)
Short-term loans and advances |
555.784 |
381.359 |
509.940 |
|
(f) Other
current assets |
482.109 |
453.661 |
491.401 |
|
Total
Current Assets |
35.873 |
40.508 |
22.118 |
|
|
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 |
|
QUARTERLY RESULTS
|
Particulars |
30.06.2014 (Unaudited) |
30.09.2014 (Unaudited) |
31.12..2014 (Unaudited) |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3552.300 |
3552.200 |
3443.000 |
|
Total Expenditure |
3006.700 |
3202.900 |
3087.600 |
|
PBIDT (Excl OI) |
545.600 |
349.300 |
355.500 |
|
Other Income |
175.100 |
190.900 |
146.000 |
|
Operating Profit |
720.700 |
540.100 |
501.400 |
|
Interest |
29.300 |
29.600 |
31.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
691.400 |
510.500 |
469.900 |
|
Depreciation |
173.800 |
180.400 |
172.900 |
|
Profit Before Tax |
517.600 |
330.100 |
297.000 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and
contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
517.600 |
330.100 |
297.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
517.600 |
330.100 |
297.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
8.42 |
4.32 |
12.59 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
17.54 |
16.85 |
21.05 |
|
|
|
|
|
|
|
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 Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs. In
Million |
Rs.
In Million |
Rs.
In Million |
|
Share Capital |
80.632 |
161.264 |
181.023 |
|
Reserves & Surplus |
0.000 |
552.792 |
0.000 |
|
Money received against share
warrants |
6654.425 |
6526.173 |
8623.572 |
|
Share Application money pending allotment |
0.000 |
0.000 |
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 Million |
Rs.
In Million |
Rs.
In Million |
|
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 Million |
Rs.
In Million |
Rs.
In Million |
|
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 |
No |
|
10] |
Designation of contact
person |
No |
|
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 Million |
31.03.2013 Rs.
In Million |
|
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 Million 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 Million. 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
Million compared to Rs.7559.459 Million in previous year and the sales in
homecare segment grew to Rs.2913.197 Million compared to Rs.2449.086 Million in
previous year. The profitability of Soaps and Detergents segment improved to
Rs.1269.318 Million from Rs.765.471 Million in the previous year. The
profitability in homecare segment improved to Rs.833.76 Million from Rs.794.13
Million 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.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER 2014
(Rs. In Million)
|
Particulars
|
Quarter Ended ( Unaudited) |
Quarter Ended ( Unaudited) |
Nine Month Ended
( Unaudited) |
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
|
|
|
|
|
1. Income
from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
3400.644 |
3547.836 |
10497.356 |
|
b) Other operating income |
42.401 |
4.351 |
50.069 |
|
Total
income from Operations(net) |
3443.045 |
3552.187 |
10547.425 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
1310.820 |
1087.877 |
3598.856 |
|
b) Purchases of stock in trade |
716.465 |
853.628 |
2328.847 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(252.317) |
(19.403) |
(360.444) |
|
d) Employee stock |
312.496 |
316.122 |
958.771 |
|
e) Employees stock option expenses |
117.975 |
60.270 |
178.245 |
|
f) advertisement and sales promotion expenses |
420.970 |
440.188 |
1235.768 |
|
g) Depreciation and amortization expenses |
172.915 |
180.355 |
527.090 |
|
h) Other expenditure |
461.188 |
464.235 |
1356.442 |
|
Total expenses |
3260.512 |
3383.272 |
9823.575 |
|
3. Profit from operations before other income and
financial costs |
182.533 |
168.915 |
723.850 |
|
4. Other income |
145.976 |
190.850 |
511.306 |
|
5. Profit from ordinary activities before finance costs |
328.509 |
359.765 |
1235.156 |
|
6. Finance costs |
31.526 |
29.639 |
90.442 |
|
7. Net profit/(loss) from ordinary activities after
finance costs but before exceptional items |
296.983 |
330.126 |
1144.714 |
|
8. Exceptional item |
0.000 |
0.000 |
0.000 |
|
9. Profit from ordinary activities before tax
Expense: |
296.983 |
330.126 |
1144.714 |
|
10.Tax expenses |
0.000 |
0.000 |
0.000 |
|
11.Net
Profit / (Loss) from ordinary activities after tax |
296.983 |
330.126 |
1144.714 |
|
12.Extraordinary Items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13.Net Profit / (Loss) for the period |
296.983 |
330.126 |
1144.714 |
|
14.Paid-up equity share capital (Nominal value Rs.10/- per share) |
181.023 |
181.023 |
181.023 |
|
15. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
16.i) Earnings per share (before extraordinary items)
of Rs.10/- each) (not annualised): |
|
|
|
|
(a) Basic |
1.64 |
1.82 |
6.32 |
|
(b) Diluted |
1.63 |
1.82 |
6.30 |
|
Particulars
|
Quarter Ended ( Unaudited) |
Quarter Ended ( Unaudited) |
Nine Month Ended
( Unaudited) |
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
60142095 |
60142095 |
60142095 |
|
- Percentage of shareholding |
33.22% |
33.22% |
33.22% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
44400000 |
50500000 |
44400000 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
36.73% |
41.78% |
36.73% |
|
Percentage of shares (as a % of total share capital of the
company) |
24.53% |
27.90% |
24.53% |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
76481401 |
76481401 |
76481401 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
63.27% |
63.27% |
63.27% |
|
Percentage of shares (as a % of total share capital of the
company) |
42.25% |
42.25% |
42.25% |
|
|
|
|
|
|
B.
Investor Complaints |
|
|
|
|
Pending at the beginning of the quarter |
|
Nil |
|
|
Receiving during the quarter |
|
59 |
|
|
Disposed of during the quarter |
|
59 |
|
|
Remaining unreserved at the end of the quarter |
|
Nil |
|
Notes:
1.
The statutory auditors have carried out a limited
review of the financial results of the Company. The same were reviewed by the
Audit Committee and approved by the Board of Directors at their meeting held on
January 28, 2015.
2.
Prior period item in consolidated financial
results relates to sales promotion expenses incurred relating to previous
years.
3.
Exceptional item relates to additional payment
towards retrenchment of employees on closure of the Bhubaneshwar and Chennai
manufacturing unit.
4.
Other Operating Income for the quarter ended and
nine months ended December 31, 2014 includes Rs.37.491 Million of credit note
received from Gail (India) Ltd. for revision in fuel prices from 2008-09 to
2013-14.
5.
Subsequent to the quarter, Jyothy Fabricate
Services Limited (Subsidiary of the Company) has issued 400 Rated Unlisted
Redeemable Non- Convertible Debentures of face value of Rs.1.000 lac each for
cash at a premium of 10.25% p.a. on maturity, aggregating of Rs.400.000 Million
on private placement basis.
6.
Subsequent to the quarter, a scheme of
amalgamation of Associated Industries Consumer Products Private Limited
('AlCPPL') ('the transferor company') with Jyothy Consumer Products Marketing
Limited ('JCPML') ('the transferee company') has been filed with the Honourable
High Court. The appointed dated of the merger as per the scheme is April 01,
2014.
7.
The Company has opted to publish consolidated
unaudited financial results for the financial year 2014-15 for the first time.
Accordingly, the corresponding figures for the quarter and nine months ended
December 31, 2013 are based on management accounts and have not been reviewed
by the auditors.
8.
Ratios for the year ended March 31, 2014 have
been computed as follows :-
Interest Service Coverage Ratio = Earnings
before Finance cost, Depreciation and Tax / Interest on debt Debt Service
Coverage Ratio = Earnings before Finance Cost, Depreciation and Tax / (Interest
on debt + Principal repayment)
Debt comprises long-term borrowings and current maturity}' of
long-term borrowings.
9.
Previous period / year’s figures have been
regrouped/rearranged wherever necessary.
AUDITED SEGMENT
WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In
Million)
|
Particulars
|
Quarter Ended ( Unaudited) |
Quarter Ended ( Unaudited) |
Nine Month Ended
( Unaudited) |
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
1. Segment Revenue |
|
|
|
|
a. Soaps and Detergent |
2721.297 |
2722.525 |
8366.280 |
|
b. Home Care |
646.097 |
798.910 |
2039.650 |
|
c. Laundry Services |
0.000 |
0.000 |
0.000 |
|
d. Others |
36.440 |
42.536 |
139.372 |
|
Total |
3403.834 |
3563.971 |
10545.302 |
|
Less : Inter Segment Revenue |
3.190 |
16.135 |
47.946 |
|
Net Sales |
3400.644 |
3547.836 |
10497.356 |
|
|
|
|
|
|
2. Segment Result (Profit before
Interest and Tax) |
|
|
|
|
a. Soaps and Detergent |
213.091 |
204.786 |
837.689 |
|
b. Home Care |
5.864 |
54.704 |
102.211 |
|
c. Laundry Services |
0.000 |
0.000 |
0.000 |
|
d. Others |
5.396 |
-0.492 |
0.322 |
|
Total |
224.351 |
258.998 |
940.222 |
|
Less : (i) Interest |
31.526 |
29.639 |
90.422 |
|
(ii) Other un-allocable expenditure net off un-allocable
income. |
42.520 |
90.421 |
217.277 |
|
Add: Other Un-Allocable Income |
146.678 |
191.188 |
512.211 |
|
Profit before Tax |
296.983 |
330.126 |
1144.734 |
|
|
|
|
|
|
3. Capital Employed |
|
|
|
|
a. Soaps and Detergent |
4745.357 |
5156.045 |
4745.357 |
|
b. Home Care |
1046.206 |
917.550 |
1046.206 |
|
c. Laundry Services |
0.000 |
0.000 |
0.000 |
|
d. Others |
219.712 |
224.594 |
219.712 |
|
e. Unallocated Assets |
4085.216 |
3383.345 |
4085.216 |
|
Total |
10096.491 |
9681.534 |
10096.491 |
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 |
- |
·
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:
EXPECT 10% UPSIDE IN JYOTHY
LABORATORIES: PRAKASH DIWAN
Prakash Diwan of Altamount Capital Management told CNBC-TV18, "In this entire flight to safety, people end up going back to the same world of Hindustan Unilever Limited (HUL), Marico and Britannia Industries and we have seen overpricing of sorts coming to the defensives. Now if the Budget were to be a great Budget, it possibly is going to be restricted to manufacturing and infrastructure. Fast moving consumer goods (FMCG) is not something that people are expecting great sops on but my sense is that consumption driven stocks will do extremely well along with financials."
"It pays to be in some of these reasonably valued stocks. Jyothy Laboratories is analysts' delight. The coverage is extensive, most brokerages have been covering it long time. It is a stock that has moved from a single brand, domestic play challenging the MNCs has bought out Henkel’s portfolio a couple of years back, successfully integrated it to their own, to the extent that they had the Ujala brand, which was a flagship, in fact that was the only thing they were known for. Now they have Henko, Pril, Exo and a parent brands have subsided which is Margo and predominantly they used to be very strong in the south but this time around the numbers which came up is about 56-58 percent which are from the non-south sales," he said.
"The earnings numbers are pretty decent, the margins have improved but advertising and promotional (A&P) expenses are quite high so that has eaten into that. They also had Rs.110.000 Million ESOP this quarter but if you take those things away, the margins have definitely improved. They also have a benefit of a lower crude regime which people haven’t discounted completely. My sense is the kind of strength that they have built in to distribution into margins, because of lower input cost, if they cut down on A&P expenses, it is going to be a stellar change. It is even not valued as extremely as you have rest of the FMCG players. So it could be back in the spotlight. I am expecting a sudden spurt at least till the next quarterly numbers are out and then of course it will organically grow at about 30 percent compounded annual growth rate (CAGR) and thereon.-So you look at 10 percent of an uptick from here very quickly."
JYOTHY
LABS RAISES RS.2630.000 MILLION VIA PREFERENTIAL ALLOTMENT
Home-grown consumer goods company Jyothy
Laboratories Limited (JLL) today said it has raised Rs.2630.0000 Million via
preferential allotment of shares to a promoter Group firm.
The city-based company has allotted 15 Million 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 Million from Rs.166.000 Million. 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 Million, leaving a cash
balance of about Rs.2500.000 Million, 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 Million 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 Million, 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 Million through preferential allotments
and with the addition of Rs.4000.000 Million- 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 Million 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 Million against this preferential allotment. We had
raised Rs.4000.000 Million of Negotiable Certificate of Deposits (NCD) coupon
payable after three years. With that, we have now Rs.6620.000 Million 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 Million 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 Million 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 Million 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 Million
and it was making a loss of Rs.6000.000 Million, while Jyothy's revenues were at
Rs.6000.000 Million and its profit after tax, Rs.740.000 Million. "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 Million, it saved almost Rs.1000.000 Million. 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 Million, and profit after tax
139% at Rs.770.000 Million, 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 Million. 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 Million, 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 Million 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 Million 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 Million 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 Million, its losses stood at RS.400.000 Million a
year. Over the years, it had lost over Rs.6000.000 Million, 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 Million 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 Million against this tax liability. The
company also had real estate worth at least Rs.1000.00 Million. 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.62.82 |
|
UK Pound |
1 |
Rs.92.83 |
|
Euro |
1 |
Rs.66.17 |
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 |
|
--PROFITABILITY |
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.