Jyothy Labs conducted their earnings con-call today at 3:00 PM

Here are the key highlights 😀👇

@drprashantmish6 @unseenvalue @proxy_investor @deepakshenoy

#concall

Sector Trend:
• Strong demand in Homecare and healthcare
• Institutional business has gradual comeback and now near to pre-covid level
• New launches: Exo All Surface Cleaner launched in South of India
• Media spent increased for more growth
• Market share has been improved
Business: Updates:
• A&P spend increased with growth in business segment.
• Segmental performance in image.
• Due to lower other expenses the EBIDA margins have seen growth insipte of increase in adv. cost.
Business segment:
• Mainwash segment has started doing better.
• Postwash segment is still constrain as school and office are closed. However there is gradual growth.
• Dishwash segment remain robust and company continuous to see good growth over diswash.
Sales Growth:
• Higher utlization has been helping in decreasing the cost.
• Sales force with higher utlization reduces per cost, hence increase in margin.
• Increase in price has very little part.
• Company has current guidance of same margins of around 14-15%.
Recovery of Detergent:
• All of the detergent are back on growth.
• Ujala and Mr White are doing good. Ujala post wash is coming back to pre-covid levels (90-95% of pre-covid levels)
• Crisp and Shine has been only in 2 states which is affect by covid, hence it may take time.
Household Insecticide.
• Coil segment company has 20% of market share and in liquid company has 8-10% of market share.
• Segment is still profitable.
• Company expects more 3-4 quarter to see a significant growth in the liquid coil segment.
• Coil segment company has 20% of market share and in liquid company has 8-10% of market share.
• Segment is still profitable.
• Company expects more 3-4 quarter to see a significant growth in the liquid coil segment.
• Product Delivery have been improved with compare to competitor.
• Other Expense as a % of sales will be same and there is no on-off.
• Tax Rate: Company is under MAT for this year and entire FY 2022, hence tax rate can be 18-20%.
• Personal care: Main growth driver is Margo
• Rural growth is higher than the urban.(1.3:1 growth rate rural:urban).
• Channel Inventory: Generally is 2-3 week
• Debt: Company stands at net cash. Gross debt is expected to be ~50-60cr.
• There may be little decline in A&P cost keeping EBIDTA margins expectation in line.
•Low presence in East: East is next biggest market hence there is good presence of the company.

• In e-commerce company don't go for Grofferes due to unfavourable T&C.

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More from For later read

This response to my tweet is a common objection to targeted advertising.

@KevinCoates correct me if I'm wrong, but basic point seems to be that banning targeted ads will lower platform profits, but will mostly be beneficial for consumers.

Some counterpoints 👇


1) This assumes that consumers prefer contextual ads to targeted ones.

This does not seem self-evident to me


Research also finds that firms choose between ad. targeting vs. obtrusiveness 👇

If true, the right question is not whether consumers prefer contextual ads to targeted ones. But whether they prefer *more* contextual ads vs *fewer* targeted

2) True, many inframarginal platforms might simply shift to contextual ads.

But some might already be almost indifferent between direct & indirect monetization.

Hard to imagine that *none* of them will respond to reduced ad revenue with actual fees.

3) Policy debate seems to be moving from:

"Consumers are insufficiently informed to decide how they share their data."

To

"No one in their right mind would agree to highly targeted ads (e.g., those that mix data from multiple sources)."

IMO the latter statement is incorrect.

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