CHAIRMAN'S
STATEMENT

In FY2013-14, the Company delivered a strong performance. My team achieved this despite facing challenging market conditions. We continued to grow on all our Power brands.


EBITDA grew by 34% to ` 167.1 crores in FY 2013-14.


Net Sales grew by 23% to ` 1,255.1 crores in FY 2013-14.


Dear Shareholders,

In FY2013-14, the Company delivered a strong performance. My team achieved this despite facing challenging market conditions. The team continued to grow on all our Power brands. In the two years since acquiring Henkel, we have consolidated our strengths, addressed challenges and successfully turned our Company around. We now have six Power brands offering attractive growth opportunities.

During the year, we put a contemporary, refreshed positioning for all our brands. We strengthened our Research and Development (R&D) efforts for new product development and to maximise customer satisfaction while addressing customer requirements. We are working constantly to meet the newer requirements of our valuable consumers.

All our products have a unique and individual identity. We have integrated our departments; from product development to R&D and marketing, and created more effective cross-functional processes in the organisation. We aim to achieve deeper penetration and build stronger brands. We achieved cost efficiency and increased automation in plants. We have now harnessed all attributes to forge ahead with significant scale benefits.


Translating our Efforts into Numbers

For FY 2013-14, Net Sales grew by 23%, to ` 1,255.1 crores on a standalone basis. In terms of profitability, the EBITDA which stood at ` 167.1 crores grew 34% from the previous year even after increasing our advertisement and promotional expenditure by 65%. The EBITDA Margins stood at 13.3% as opposed to 12.2% in the last year. Our gross margin rose from 44% to 46% this year.

Despite a difficult economic environment, we registered a Profit after Tax of ` 106.1 crores in FY2013-14 from ` 44.0 crores in 2012-13. Our Debt Equity Ratio stands at 0.58.We are comfortably servicing the same from internal cash accruals and it is hence, manageable. We are achieving greater scale with greater portfolio clarity and sharper communication.

In FY 2013-14 the strong net revenue growth of the business has been leveraged into even higher increases in profit and good cash conversion. Net cash flow from operations was ` 146.5 crores while cash profit stood at ` 167.7 crores.


Going forward

Jyothy continues to provide superior value for the money that our customers spend on the products across categories. This remains our organisational goal and all our activities and efforts reflect this core objective.

During FY 2014-15, we hope to strengthen brands which will encompass new creatives, marketing spends and leveraging on the re-engineered distribution system while maintaining production efficiencies. Going ahead, we aim at outperforming the industry in terms of revenue growth.

The change at Jyothy was managed commendably by my colleagues. I would like to thank all my team members for their dedication and passion over the year. We have delivered a strong performance for our shareholders. The company has in place all building blocks to speed innovation and gain market share and we are confident that the strategies the Company continues to pursue will stand us in good stead. I have the utmost confidence in my team to lead the Company to continued success. I also take this opportunity to thank each one of our stakeholders who have reposed their trust in us.



M. P. Ramachandran
Chairman & Managing Director