Ladies and gentlemen, good day and welcome to Jyothy Labs Limited Q3 and FY 2025 earnings conference call, hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Bhuwania from ICICI Securities. Thank you, and over to you, sir.
Thank you, madam. Good evening, everyone. It's a pleasure at ICICI Securities to host Q3 FY 2025 business conference call of Jyothy Labs. From the management, we have Ms. M. R. Jyothy, Chairperson and Managing Director, Mr. Pawan Kumar Agarwal, Chief Financial Officer. I'll hand over the call to the management for their opening remarks, post which we can open for Q&A. Thank you. Over to you.
Good afternoon, everyone, and a warm welcome to the Q3 earnings call of Jyothy Labs Limited. The complete financial results and investor presentations are available on both our company's website and the stock exchange. I hope everyone had a chance to look at it. For the quarter ending 31st December 2024, consolidated revenues from operations reached INR 704 crore, which represents a 4% year-on-year value growth and 8% volume growth. The difference between volume and value growth is driven by higher grammages and promotional price-off in a few categories. Ex-HI segment Q3 grew by 6.1% year-on-year in value terms and volume grew by 10.3%. The overall demand environment continues to be subdued amid inflationary pressures and muted growth rates in urban India. However, good monsoon and growing rural wages saw decent rural demand during the quarter.
Having said that, the demand recovery, especially in the rural areas, is gradual, and in our assessment, cannot compensate for the stress in urban demand fully. With the rising proportion of Indian consumer purchases getting unplanned and of low to moderate order value, there has been an increase in demand for instant fulfillment served by quick commerce platforms. The rapid rise of some of the quick commerce platforms, promising 10 to 30-minute delivery service in urban markets, seems to be influencing the consumer habits in retail. While in our assessment, the material impact is felt more on food, groceries, and other impulse buying categories, we are closely observing the evolving behavior of consumer purchases in the home and personal care categories. Our gross margin for the quarter stands at 49.8%, which was maintained at the same level on a year-on-year basis.
Our coverage of some of the key raw materials helped us protect the gross margin in Q3. We have taken select price increases in the body soap category in Q3, the impact of which should be visible in Q4 FY 2025. Depending upon the direction of input prices and market conditions, we'll trigger price increase actions in Q4. Our focus on strengthening the brand remains undiluted, despite some demand headwinds in the near term. Our advertisement and sales promotion spend remain constant at 9% in Q3 FY 2025 as compared to the same period last year. Our operating EBITDA margin for Q3 stands at 16.4% compared to 17.5% in the same period last year.
While gross margin was protected at 49.8%, the drop in EBITDA margin by 110 bp s is largely due to the fact that while volume has grown by 8%, the value growth was 4%, and operating expenses grew by 7% to 8% on a year-on-year basis. Q3 saw fabric care category touching nearly double-digit year-on-year growth. The growth was contributed mainly by liquid detergents and duly supported by detergent powders. Our post-wash category remained a key priority, with Ujjala Supreme maintaining its leadership position. This was bolstered by a new pan-India multimedia campaign featuring national award-winning actress Vidya Balan, launched in October 2024. Ujjala Crisp and Shine was supported by an impactful campaign featuring lady superstar Nayanthara, emphasizing the transformative role of crisp and polished attire in enhancing confidence.
In Kerala, Ujjala IDD detergent powder achieved a market share of 24.5% in its segment during Q3 FY 2025, supported by a multimedia campaign led by superstar Manju Warrier. Within our liquid detergent portfolio, exclusive packs for Henko were introduced to target key markets, complemented by active sampling programs. Sustained multimedia campaign continued featuring Kajal Aggarwal, leveraging television and digital platforms in priority markets to enhance Henko brand visibility. More Light liquid detergent continued to perform well and we successfully launched Mr. White liquid detergent in strategic markets in October 2024, garnering a positive initial response. Dishwash segment grew by 3.6% on the backdrop of growth in Pril liquid, Exo, and Scrubz. Exo achieved a market share of 14.1% in Q3 FY 2025. The ongoing campaign featuring Shilpa Shetty was sustained with higher frequency, reinforcing brand salience.
TV and digital multimedia campaigns on Pril liquid continued nationwide in Q3, featuring actors Genelia and Riteish Deshmukh to highlight its superior grease-cutting performance and time-saving benefits. Pril continues to perform well in modern trade retail stores and e-commerce platforms. Personal care declined 3.7% year-on-year in Q3 due to slowdown in consumption. Our national multimedia campaign featuring Raashii Khanna continues to effectively communicate the brand's core proposition of promoting good habits. We leverage digital platforms and targeted consumer engagement to maximize the impact of our campaigns, while also broadening our portfolio with new variants to address evolving consumer preferences. To tap growth opportunities in the mass toilet soap category, we have just launched Jovia beauty soap, crafted with the goodness of vitamin E and natural ingredients. Jovia comes in two variants: Lemon and Aloe Vera, and Sandal and Turmeric for clear and glowing skin.
Household insecticide segment was severely impacted due to continuous shift in consumer preference towards insect sticks and not-so-favorable weather conditions. Liquid vaporizer had a tough quarter, but for the nine-month period ended December 2024, it has grown at a healthy double digit compared to the same period previous year. To counter some of the challenges in HI segment, we have intensified the multimedia campaign featuring Kareena Kapoor , focusing on high-priority regions. Over the past few years, slowly but consistently, we have successfully reduced our dependence on HI segment with the growth of various other business segments for the company. With the launch of Maxo Racket, an anti-mosquito racket which has a long battery life, there is one more addition to our household insecticide portfolio. For the nine-month period ended December 2024, the company has delivered a 4% value growth and a 7.2% volume growth.
Except for HI, all other segments have delivered growth during this period. HI witnessed a degrowth of 7.3% for the nine-month period ended December 2024. On the gross margin front as well, there is an improvement of 150 bp s, that is 50.4% compared to 48.9% of last year. EBITDA in absolute terms improved from INR 371.4 crores in the last year to INR 387.7 crores in this year, and the EBITDA margin saw an improvement of 10 bp s from 17.7 to 17.8. Profit after tax too improved from INR 291.2 crores to INR 294.1 crores. Despite recent inflationary trend noticed in a few key inputs, we are committed to delivering on our long-term profitability and sustainable growth objective.
As mentioned in the past, we are focused on launching innovative products, leveraging our competitive advantage such as strong manufacturing capabilities spread across the country, cost optimization, excellent vendor partnerships, deep distribution networks, and we remain optimistic about the long-term growth potential of the company, wading through somewhat volatile near-term demand scenarios. Growth for us has been driven by our ability to deliver quality products, which are manufactured in-house, hit market-relevant price points, and pack sizes for urban and rural consumers, nicely supported by our strong brands, efficiencies in operation, and distribution of our products across geographies through various channels. Protecting margins amidst these sluggish demand scenarios and commodity inflation will be the key focus area for us in Q4. We remain committed to strengthening our market presence across categories by investing in strategic brand-building initiatives, driving innovation, and enhancing consumer engagement.
Last but not the least, I would like to thank you for your continued trust and support as we work towards delivering sustained growth and value creation. With this, I conclude my opening remarks and will be happy to answer any questions. Thank you.
Thank you very much, ma'am. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Abneesh Kumar Roy from Nuvama Wealth and Investments. Please go ahead.
Yeah, thanks. My first question is on H2. So a market leader has come out with a new technology, which is more efficacious, which currently other players don't have. And when I see numbers clearly, they seem to have done much better than you, although they have also seen decline. Your decline is much sharper in spite of being much smaller. So could you comment on whether you need much more effective technology to compete with market leaders? And are you also seeing downtrading? So that could potentially benefit your coils business.
Thanks, Abneesh. While the market conditions have been bad, we trust our formulation very well, and it's a, what do you say? It's a very solid formulation, and now only we are in this space, and I have a lot of confidence in our formulation. It's the coil segment that has grown for us. If you see year-on-year, we are at good double-digit growth in the liquid segment. Now, the best is that this segment overall is contributing in the lower single digits. For us, our focus is on growing all other categories and not particularly HI. HI will be there and will have good enough growth for the coming year. We'll have a few launches, which you will also see.
So I understand it is a small portion of your business. That is well understood. My specific question was in terms of your comment that you are the only company in this subcategory, if you could comment a bit more. And our sense is the higher active molecule in terms of the agarbatti, those seem to be doing well for the market leader also. So if you could comment on that part of the segment, more effective agarbatti.
Yeah, good luck to the market leader, I would say here. And we'll see some more action in that space later.
Okay. My last question will be on dishwash. Here, market leader again has seen high single-digit growth while you have seen 3%. So if you could comment here what's happening in terms of the liquids versus the basic dishwash in both how the growth is, because overall growth is 3%. So if you could comment both brands-wise also and the liquid and the overall, the mass end.
Yeah, for us, the liquid has grown in double digits, while the bar segment has grown decently. And we also have scrubbers here. So it is a mix of all of these categories.
So scrubbers would have underperformed because if liquids is double-digit and overall growth is 3%, something would have seen a decline also, right?
Yeah. See, if you see the major volume growth is what we have achieved in the segment. We have given more grammages. So if you see the overall volume growth for the company has been driven by dishwash for us.
Okay. Understood. That's all from my side. Thank you.
Thank you.
Thank you. A reminder to all participants, if you wish to ask any question, you may press star and one on your touchtone telephone. We have our next question from the line of Vishal Gutka from HDFC Securities. Please go ahead.
Yeah, I think three, four questions from my side. First is on Jovia. So what is the right to win out over here? What is the differentiating point that we launch? Or are we planning to build the brand more lightweight, which in the way give excellent quality to customers and give high margin to trade? And if it works, then I think at a later point of time, we can start advertising the product. So that's the first question. And second related question on Margo. So we have launched the Sandalwood variant out over here for a neem-based soap. There are also decent competition from Santoor and recently Lux have also ventured in a big way into the Sandalwood variant. So first, if you can answer these two questions, and then we'll take the other two questions. Thank you.
Yeah. So Jovia, we have launched in the mass segment, Vishal. And there it is, the bundle pack that goes, right? And we have differentiated with vitamin E, and the pricing is very competitive. And this is obviously you are seeing downtrading across categories that is happening. And we want to also explore that segment. We want to not lose that opportunity as well. So that is one. And we have launched the Sandalwood variant, but it's again a variant play there just to enhance the overall extension bit. So yeah.
Okay, and Jovia launched here on the Pan India basis and selected geographies have been launched.
Initially selected geography, but it is intended to have a Pan India launch.
Got it. Got it. Other two questions on new launches on the Maxo Racket that you introduced for the mosquito. So it is modern trade model or what is the differentiation again you're offering because the pricing of local and regional players will be far, far lower. So I understand that in the presentation, there's extended battery life, I think for six months that you have stated. That could be one of the differentiating points in the pricing principle if you can highlight a bit. And second thing on the dishwashing side, HUL has launched a new product in the value for money liquid segment under the brand name Sun. Do you have any plans to introduce liquids in the value for money segment, dishwashing liquids? Thank you.
Yeah. The racket introduction is basically, Vishal, to have a complete portfolio rather. It's a very small market segment, market category as it is here. But our presence is needed. There is all other competition also present in there. We have to be present there. And hence, that's a good addition to the category. That's all that is there to the racket. And then what was the other question? The liquid in dishwash, while our Pril is doing well, you'll see if there are more launches right now. I wouldn't want to comment anything on it.
Got it. Got it. Got it. Great. Thank you.
Thank you. Before we move on to the next question, a reminder to all participants, you may press star and one to ask questions. The next question is from the line of Sonal Minhas from Prescient Capital. Please go ahead.
Hi, this is Sonal. Am I audible?
Yes, Sonal. So please go ahead with the question.
Yes, sure. Yeah. So I have two questions with regard to the personal care segment. I wanted to get a bit of a subjective commentary on how do you see your personal care category compared to competition when you've launched Jovia, which is on the economy segment. What is your take on products which are a little more premium or a little more higher up in the value chain? That's one. And secondly, as we see the market being a little sluggish, are people downsizing in terms of volume? But that should show up in your margins. Just wanted to understand what is the customer behavior as we speak right now on personal care, given there is slow demand.
Yeah. So see, for us, I wouldn't want to comment on others, Sonal. For us, the personal care segment is quite small right now. And with the introduction of Jovia, we are only adding to the personal care so that we can increase this 10% to 12% to a larger percentage in the future. So you will see some more additions coming in the personal care category over a period of time. And that is, like I said previously, the consumers are downtrading. And we don't want to lose any opportunity either in an economy segment or a premium segment. So that's where we are. We want to be there in most segments as much as possible. Now, coming to market sluggishness, yes, that people are downtrading. There are issues with volume. So that will remain for some more time is what the guess is.
Okay. Just to follow up on this, so is it better to look for alternative link categories to, let's say, soap which have more resiliency than actually go down the value chain and say, "We're going to launch an economy range of soap," because that's a fairly cluttered market? I'm just trying to basically just get your sense on that. So rather than soap, let's say a bathing gel is a resiliency. But what's your take on that?
Yeah, yeah. So the gel, you're saying the body wash category, right? The body wash category is there. It is not growing. I mean, you're seeing growth there, but not as much as your liquid detergents are growing. For us, the soap segment, we had to have this segment as a good addition for us right now. While we are not ignoring the body wash segment, we will be having a presence later.
Okay. So that's not on the cards immediately is what basically you're saying. Got it. That's it from my side. Thank you.
Yeah.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Prolin Nandu from Edelweiss Public Alternatives. Please go ahead.
Yeah. Hi. Thank you for taking my question. A few questions from my side. So Jyothy Labs, I mean, if we look at the gap between volume and value growth, it's on a very higher side versus our long-term average, right? So from Q4 onwards, do we think that we will revert back to whatever this gap was on the basis of our long-term average? And also, if I think about FY 2026, will you be reiterating that you will be—are you confident on achieving our long-term or our objective of double-digit volume-led growth?
See, Nandu, right?
Prolin, Prolin, yeah.
Prolin. Okay. Prolin, the thing is our ambition is still there to grow in double-digit volume growth. But we are a little cautious here. We'll try our best to be in the double-digit, but I don't want to guide you there. Right now, we are facing, and the market is challenging, but we'll do our best what we can. That's all what I can say.
Sure, sure. And if I look at your long-term, I mean, your guidance on margin as well, right? We have given this band of 16% to 18%, and we want to invest in brands, right? So when I look at your presentation, right, and even in the slide deck, let's say if we look at slide number 25, the number of celebrities that we have doing our ad campaigns for each of the products is probably one of the highest for the revenue that we generate. So when we want to invest in some of the brands, is there a case to rationalize some of our existing brands and some of the investment in newer brands can be recouped from our existing ANP spends as well?
This is Pawan Agarwal . So I think brand investment strategy will continue because this is what is going to fuel the future growth. While your suggestion of rationalizing some of these celebrities and putting money on some of the new brands which probably would emerge in future, again, it's a complex matter which cannot be taken at this stage. Right now, we are on a stage where we are investing in our existing brands, and these brands are delivering good growth for us. And as and when in future, when we add new brands and we enter into new product categories, etc., we'll continue to promote those brands as well. So I think in the near to midterm, the ANP spend broadly would remain range-bound.
Sure, sure. All right. And last question from my side would again be pertaining to your launch of Jovia, right? Now, in a way, you mentioned that we are seeing a lot of downtrading, and we want to be present in this market. But at the other end, we also want to focus on, let's say, liquid detergent in our other part of our portfolio, right? So is it not right to probably take one approach and probably focus on premiumization because these are more opportunistic kind of a move? Where I'm coming from, Jyothy Labs, is that how do we manage so many launches, so many products, right? We have also launched a racket, right? So a lot of management bandwidth, promotion, and all would be going in some of these launches. So how do we manage the portfolio?
Do you have a thought on probably cutting back on some of these products which are not performing? Maybe the coil segment in HI could be a case in point, right? Do you have any thoughts on exiting some of these products?
See, Prolin, I believe in building for the future, and that's where the launches play. Today, we need to have certain play in these categories, and hence we are launching, and this will be the future growth. We are just seeding in with all these new launches that will be coming. It's only the HI segment, and within HI, it's only the coil which is not doing well for us right now. If you see the personal care segment again, it's a very temporary thing, is what I believe. Most of our segments are on a growth path, and within HI, it's the coil which is not doing well. What we have done is by doing all of this, we are trying to grow all the other categories which is doing well for us, and they have been our strength to grow so far.
And we'll be investing behind growing these categories. We are bringing down the importance of HI in the overall thing. So earlier, it used to be 15% of the company. Now, it has reduced to 4% to 5%, and I think we have been successful in that. If you remove HI, our volume growth for the rest of the category is at 10+% growth, which is very good, I believe, in today's scenario.
And also, just to add to what Jyothy said, the kind of distribution network that we have created over the past three, four years, the amount of products that can be placed in this channel across the country, I think, is just the beginning. So we have great opportunity and runway available before us.
Sure. That's it from my side, Jyothy Labs. All the best, and thanks a lot for taking my questions.
Thank you.
Thank you.
Thank you. We have our next question from the line of Amit Purohit from Elara Capital. Please go ahead.
Yeah. Hi. Thank you for the opportunity, ma'am. Just on this volume value pricing gap, growth gap, because in this quarter, it's almost 4%. Last quarter was 2.8%. And so where are the actions that we have taken? Because we would have taken some pricing increase in soaps you indicated, and then some price of higher grammages in Exo. Any price changes we would have done in detergent as well?
No, actually, the higher grammages in dishwash and in fabric care, the detergent liquid, which is doing really good for us. So there, the realizations are still lower. So this basically and promos, of course. So these factors put together has led to this gap between volume and value growth that you see.
What is the price increase taken in soap then?
Soap, we have taken towards the end of December. It's a low single-digit increase that we have taken, but we are planning to take further pricing action in quarter four in personal care category.
Okay. And then if that's fair, so going forward also, do you think this gap, because one, the detergent portfolio and as well as the dishwash portfolio, that should continue, right? Because the liquid will continue to do well, and that will continue to have a negative effect. And it's the soap portfolio probably will help us to negate this, right? Is that the right way to think and hence?
It will be a combination of various factors. So the gap between value and volume would not necessarily be as high as you see right now. It will revert to the mean level. So 2% to 3% gap over a fairly long period of time is what we can consider. So that is how it is going to look like.
So I mean, for FY 2026 also, there would be some gap of, say, 2% or so. Is a fair assumption to think about?
Yeah. 2% to 3% should be the gap.
Yeah. Then I just want to understand more on this margin, segmental margin. I understand we look at overall, but still, just to understand, our gross margins remain stable on a YoY. Our dishwash performance, despite giving good grammage, our EBIT margins remain same. Maybe we would have spent less on advertisement. But fabric wash gross margins, EBIT margins declined. Household declined. Personal care also declined. And personal care, I can understand that because this would have a gross margin impact. And fabric care, if you are doing liquid more, maybe, like you said, there is a pricing impact, and hence your gross margins may not be as good as the powder margin because of promotions or advertisement and all. So I'm not able to understand how the gross margin is still stable in that sense.
Yeah. Thanks. That's a great question. Actually, it's a combination of multiple factors. Some of the things you have already articulated. One missing piece that you did not mention is the media and advertisement spend. So that varies considerably from quarter to quarter across categories. And also the raw material coverage, input coverage that we have had in various segments. That also helped us maintain the gross margin YoY.
But ad spends were actually on a YoY basis. You haven't reduced your ad spend, as if I look at on a percentage of sales.
But within the categories, there will be reshuffling. So the ad spend would be not uniform across all categories.
The other expenditure increase, is this just because last Q2 we would have not spent, and this is the quarter when we spent because last quarter was no significant growth was seen, and it's just a shift of spend? Is that the way to look at it, or is there anything because that has gone up by 9.5%?
Are you talking about quarter on quarter or year on year?
YoY basis. I'm saying 9.5% is up the other expenditure.
Yeah, so one important point is you would have noticed that our volumes have gone up by 8% YoY, so freight and transportation logistics cost has actually increased, so that's the only increase. Other than that, most of the expenses are in line with previous year.
Sure. And lastly on the outlook on the margins, how does one assess? I mean, you've been indicating 16%, 17%, but what is the guidance probably in the near term and FY 2026?
See, the margin scenario is very, very competitive, and the market scenario is very, very competitive, and the external environment is not very conducive. As of now, we are holding on to our 16%, 17%, but we are closely observing the external trend, and our effort and business plans are geared to deliver 16%, but we will let you know as we progress, as we get into the next financial year.
But would you say that this margin of Q3 would be the bottom end of the thing, or you think that there would be some more pressure coming in? That's the last resort.
Difficult to say because the way input prices are fluctuating, crude prices are fluctuating, it's a highly volatile scenario right now. So while in the immediate near term, we have to first protect our quarter four margin, this is what we are working on, and for the next year, till now, we are still believing that we should be able to deliver between 16% and 17%, but we'll come back to you in the next earnings call probably what would be the guidance for the next year.
Sure. Thank you. Thanks.
Thank you. We have our next question from the line of Tanay Gandhi, shareholder. Please go ahead.
Yeah. Hi. I just wanted to understand the split you all have between urban and rural, and if you could just paint a better picture on their growth, how each of them are growing?
So the ratio is 60/40, 60 urban, 40 rural. And rural has been decent while urban continues to have issues.
Yeah. That was just my question. If you could just shed a bit of light on decent, what do you mean by that?
See, if you see last year, rural was struggling. So I think on the basis of good monsoon and, relatively, rural has come out of it. It is not. The growth is not great, but it is coming back is what I believe. But for us, it contributes only 40%. So whatever good growth, if at all in future, you get in rural, it will not compensate for the issues that are there in the urban.
Got it. Thank you.
Thank you. A reminder to all participants, you may press star one to ask a question. We have our next question from the line of Vishal Gutka from HDFC Securities. Please go ahead.
Yeah. Just wanted to check on the current HI season is ongoing because January, I think, almost a month has passed by. And your guidance for losses for this business, I think we are making approximately INR 30 to INR 40 crore losses in this business. Shall we expect down to break even in FY 2026 as the contribution to liquid further increases?
See, HI, a lot depends on the season. February and March, like everybody, we are also waiting for the season to pan out in our favor with bated breath. Having said that, if you look at nine months performance, despite the decline in HI, the losses have come down from INR 27 crore to INR 20 crore nine months period. And even in the quarter also, even though there has been a significant decline in the top line HI segment, the losses are restricted to INR 10 crore only as opposed to INR nine crore same period last year. And this is largely a lot of fixed costs that is sitting there. Now, everything depends on volume. And going by how the season pans out, I think the profit and loss figure would also dramatically shift.
Okay. The FY 2026, I understand that it will depend upon the seasonality. But FY 2026, what are the plans to bring down further losses? Losses shall further drift down?
We are working on a lot of things. As you saw, this racket launch and there are a few other things which are happening. We are examining our strategy, using our strategy state by state, and we will be taking the necessary action wherever necessary.
Got it. And on the innovation front, I think Jyothy Madam previously highlighted that your calendar year 2022 year of innovation. So a couple of innovations we have done. I think more innovation will follow through. So I think in the past, you highlighted a lot more innovation are planned in personal care segment. So we can broadly highlight which segments, any new segment you are planning to foray or within the existing segments, we are trying to make more innovations.
Vishal, that I would like to not comment anything right now. You will see as and when we launch, you will get to know that.
Got it. Got it. Got it. Last question on the quick commerce. So just wanted to check whether you are available with all the leading three apps that are available because we generally seen some challenge in that the challenger brand being placed in the network. So if you can, just broadly give your thoughts on quick commerce. Are we there in all the apps and most of the cities are we there or not?
Yes, yes, we are there. We are there.
Okay. No major challenge in what do you call the placing the product with Quick Commerce platforms, right?
Can you repeat that, please?
Yeah. No major challenge in placing the product at the quick commerce platform, right? Because we are challenger brands in most of the category, that is why I'm asking. Generally, they tend to keep the high velocity brands. Just wanted your thoughts on that.
No, no, no. So we are present across, and for us, that challenge also has been growing.
Okay. Okay. Thank you. Thank you. And wishing you all the best for Q4 FY 2026. Thank you.
Thank you.
Thank you.
Thank you. A reminder to all participants, you may press star and want to ask questions. The next question is from the line of Sonal Minhas from Prescient Capital. Please go ahead.
Hi, this is Sonal. Thanks for taking my questions again. My question was linked to kind of what the earlier gentleman was asking around quick commerce. Wanted to understand roughly, ballpark, what percentage of your sale is quick commerce, and typically, we've seen that whenever a new distribution channel gets made, there's a new set of brands which basically have they take the pole position in a new distribution, and there are new brands which get formed. So what is your observation from that channel? Are there some products, some SKUs which you specifically made from a grammage perspective or from just a positioning perspective for that particular channel? Just wanted to hear your side.
So yes, for us, quick commerce has been growing fairly well. And I wouldn't want to mention which one is doing for us. All the categories are fairly present there, and we are growing handsomely in that channel is what I would like to say, Sonal.
Sure. And what percentage of your sale, ballpark, would it be? Like less than 5%, 5% to 10%?
We wouldn't want to comment on that.
Sure. Okay. That's it for my side. Thank you.
Thank you.
Thank you. A reminder to all participants, you may press star one to ask questions. The next question is from the line of Anurag Lodha from Axis Capital. Please go ahead.
Yeah. Thank you for the opportunity, so I just wanted to understand the competitive scenario in the dishwash segment and when do you expect it to stabilize? And I also wanted to understand about the pricing, the grammage that you've taken here, so I mean, majority of the grammage that has come in on the company, has it come from this segment? What has the split been like? Yeah, that is my question.
So yes, FMCG is competitive across categories, Anurag, and dishwash is no, it is very competitive there as well. Yes, we have passed on the grammage benefits to the consumer like any other player in the industry, and it has been doing well for us.
Understood, ma'am. But I mean, what is your anticipation with regards to how this competition is shaping up and when do you anticipate it to stabilize? So any sense over there?
In a scenario where everybody wants volume growth and when consumers are not willing to come, there will be this competitive aspect that will continue for quite some time. But we are ready with our strategy and that we'll continue. In a scenario like this, I believe that we have done well and that we will be competitive in the future as well. Stabilizing, I don't see that in the coming this thing. It will continue this way till quite some time, I guess.
Understood, ma'am. Thank you.
Thank you. Ladies and gentlemen, you may press star and want to ask a question. We have our next question from the line of Vishal Punmiya from Yes Securities. Please go ahead.
Yeah. Hi. Thank you for the opportunity. A couple of questions on Jovia. So firstly, just wanted to check what is the price point for this brand? Is it in the range of INR 20 to INR 25 for a 75 g single pack, which you obviously have been selling in abundance? Is that the same range?
Yeah, yeah. It will be around INR 25, INR 26. Correct.
Okay. Okay. And what would be the profitability in terms of maybe you can highlight the gross margin? Is it similar to the company's average, or would it be currently lower for us? At such a small scale, obviously, we'll start with a very small scale.
It will be a reasonable margin. It will not be too attractive a margin as it's going to be competing in the mass segment. So it will be reasonable, competitive enough.
Could you elaborate for us on gross margin levels in the near term, at least for the next couple of years?
Yeah. At least initially, yes.
Okay. Okay. And do you expect the launch in the mass segment to help us with Margo scalability? Do you think that in non-South markets where Margo is currently not present, can a mass product help you to tap those markets?
Yeah. The intent is to be there everywhere, Vishal. This will be a pan-India later.
I get your comment on Jovia being there pan-India, but can it help Margo to go in areas where it is currently not present?
Jovia and Margo are totally unrelated. Margo, while we have a decent presence in the South except Kerala, Margo is quite strong in Tamil Nadu and AP, Karnataka. So Margo is doing well there as well. And it is also present in the rest of the country. So with this, it is a different segment altogether. Margo is a different segment altogether. And it is, in a way, a niche segment where people believe in the ingredient name very strongly. That is that segment, while Jovia is a beauty segment.
Okay. Understood. And any guidance in terms of near-term volumes? Are you kind of seeing a better trajectory in volume terms over the next couple of quarters? I know things are quite volatile even in terms of demand. But internally, are you seeing the benefits on More Light as well as Mr. White launches as well as the latest introduction of mass segment soaps? Would it help aid volume growth to be better from current levels?
No. It looks challenging. The initial signs in quarter four are not very encouraging. So I don't think quarter four is going to be meaningfully different or superior. So it's going to be tough.
Okay. Okay. Thank you.
Thank you. Ladies and gentlemen, that was the last question for today. And I now hand the conference over to the management for closing comments.
Yes. We sincerely thank you for taking interest in Jyothy Labs. While we have tried to answer most of your questions, if there are any questions left or further clarifications needed, feel free to get back to us. Thanks once again, and I have a blessed evening ahead.
Thank you.
Thank you.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.