Jyothy Labs Ltd
NSE:JYOTHYLAB
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
393.35
579.2
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Jyothy Labs Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Jyothy Lab's Q1 FY '23 Results Conference Call hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Manoj Menon from ICICI Securities. Thank you, and over to you, sir.
Hi, everyone. A wonderful good morning, good afternoon, good evening to you depending on the part of the world you are joining this call from. At I-Sec, it's our absolute pleasure to host once again the management of Jyothy Labs for the Q1 FY '23 results conference call.
At I-Sec, we continue to have a constructive view on Jyothy Labs business and on the stock. And the results that you reported a couple of hours back, in our opinion, has been top of the street. Welcoming M.R. Jyothy, Managing Director; and Sanjay Agarwal, CFO, to the call. Over to the management, please. Thank you.
Thank you, Manoj, and good afternoon, everyone. Welcome to the conference call of Jyothy Labs. We'll be discussing the performance of the company for the June quarter 2022 with all of you and will be followed by a question-and-answer session.
Overall, we had a good quarter. We continue to have healthy double-digit top line growth. This quarter, we had about 13.7%. And even if you look at it on a 2-year CAGR basis, we grew by 17.5%. And on a 3-year basis at 12.2% on a 3-year CAGR basis.
So -- and if you look at it for this quarter, ex HI business, our business has grown by 21.8%. So overall, I sum it up as a good quarter. And we have been able to strengthen our core business with focus on distribution and brand investment and this is in spite of the quarter witnessing high inflationary pressure on the household budget and overall economic challenges post-COVID.
Specifically for our business, we see our consumer franchise getting stronger by every quarter. We've consistently been able to strengthen our market share across our brands, which confirms our optimism that there is immense potential for all our brands.
This quarter, particularly, as we all have witnessed hot summer with record temperatures, the demand for Main Wash, Post Wash and soaps segment saw good demand, while due to extreme water conditions in our core markets of North and East had an impact on our HI business. Our profitability got impacted due to continuing or persisting input cost inflation across our product categories of Fabric, Dishwash and Personal Care.
The impact has been higher in our business since 2/3 of our portfolio consumes key raw materials like LABSA, soda ash, palm oil, which have increased by at least 40% to 50% in the last 1 year. So as we speak, we believe on margin front, more or less, we have bottomed out. And with initial signs of softening of commodity prices, H2 margins should be sequentially better given the current slide in the commodity prices.
Successful price increases, which we had to take, have been impacting the volume. However, to some extent, we are insulated on the demand as the product portfolio is more essential, detergents and Dishwash, day-to-day household consumption. Hence, overall, we are witnessing a stable consumer demand across India.
Both urban and rural continue to do well. And we'll continue to focus on rural as we believe that's giving us a sustainable advantage. We've been focusing on adding rural stocks, [indiscernible] operations. So this whole growth is more distribution-led and more sustainable growth for us.
Then why we believe distribution and brand investment because when we see an immense potential in our product, we'll fund building [ scale ], leveraging on all the growth opportunities which we can add by our distribution, making brand investments and getting to a larger consumer base, gaining market share and strengthening our position in other geographies where we see a potential to gain further market share.
To share some more fact for Jyothy portfolio, our input prices have increased as a percentage to turnover by [indiscernible] over previous year. We have mitigated the same with 8% to 9% price increases across our portfolio, and balance has impacted our margins.
Moving on to the category performances. Our Fabric Care is doing well, [ 38% ] growth this quarter. Our extensive distribution drive have helped in the growth of detergent brands. In specific, we have witnessed a good demand uptick for out-of-home categories post opening up in large formats stores or Modern Trade, CSD and e-commerce.
Also, we have standard distribution network of 1 million retail outlets. We put extra focus on sales of our existing economy or mid-priced detergent brands of Mr. White and MoreLight, which have delivered over high-growth momentum.
In Ujala Fabric Whitener, we have launched a new media campaign starring superstar Taapsee Pannu, and digital campaigns have also been rolled out across key social media platforms, which have again helped us to get sales back to pre-COVID levels in Fabric Whitener.
In Main Wash, all our detergent brands at premium end at Henko Power Matic and Liquid all are doing well. And we see a good demand for midsized brands of Ujala IDD, Mr. White and MoreLight during these inflationary times.
Moving on to our next category of Dishwash category. Both Exo and Pril continue to do well with near double-digit growth for this quarter. Even if we look at our 2-year or a 3-year CAGR basis, it's a good healthy 15% growth what we have seen in Dishwash category for us.
The magic here in the Dishwash category is more under penetration and a consistent drive and higher offtake of the LUP, which is driving the penetration and which has helped the brand to reach out to new consumers and hence, growing at a faster pace. Given the potential, we have been increasing our -- continuing our media investment in brand with a few high-impact properties, which we have signed up who are helping us to accelerate sales on a pan-India basis.
In HI segment, we witnessed extreme weather conditions, as I spoke earlier. We have other strong markets of North and East, which were impacted. The temperatures have been high. Both these North and East account were 75% of our sales, and these are big markets for us. We have a higher market share there. And because of this extreme weather, the impact has been more for us this quarter, resulting in negative growth.
However, if you -- if we look at it on a 3-year CAGR basis, the revenue growth is 20%. And our market shares have improved both in Coils and Liquids back to 10%. So overall, a very positive momentum for us in HI category.
Also, when we look at HI, the -- this quarter number, if we analyze more in deep, there was a higher base in Q1 FY '22. And as the sales primarily fluctuate between Q4 and Q1 of each financial year. Even on a Jan-June basis, we look at it on a 3-year basis, it's positive in spite of the seasonal impact. Hence, our growth outlook is positive on the HI category.
Finally, a Personal Care segment, which is primarily our Margo franchise. I mean, a lot of groundwork or activities are underway to celebrate our 100 years of Margo, advocating the natural benefit of neem, and that is doing well.
This category has seen frequent price increases due to higher input prices. However, as we all are witnessing recently the LABSA prices or palm oil prices down or been softening, we expect the margin profile for this category will improve from here on.
So in summary, we continue to focus on volume-led growth what we have demonstrated for the last 8, 9 quarters and achieving a higher scale of our business. We'll focus on investment towards strategic brand building and direct distribution, which is a critical source of competitive advantage and barrier of entry.
We believe we have headroom for market share gains in most of the categories we are present. And hence, we'll continue to focus and sustain our growth.
On the margin front, we expect that with the softening of commodity prices of crude oil, palm oil and specific and others, it should reduce the inflationary impact. And with a normal monsoon and government welfare measures, we believe consumption should pick up. And it should lead to our overall growth momentum for us to deliver double-digit growth in the next few quarters as well.
So with this, I finish my opening remarks. We are happy to answer any questions and clarifications you all may have. Thank you very much.
[Operator Instructions] The first question is from the line of Vishal Gutka from PhillipCapital.
Vishal here. I have 2 questions. First is -- first on HI category. So in liquids, your market share has moved up significantly. Just wanted to understand from where this market share gains are coming?
And secondly, that's overall segment revenue has declined by 38%. But it seems that the growth for Liquid segment should have been much better, given the market share gain than present in urban areas. So any color on that will be really helpful.
Second question is on the Fabric Care segment. Market leader highlighted that they've seen high single-digit volume growth during this quarter. And plus, they also gained some market share. You've also seen very strong growth in the quarter. I just wanted to understand more about the industry growth. Is it a smaller player who was losing out because they're not ready to manage the RM index?
And over and above any color on Matic and Liquid detergents would really helpful because although you're in a very low base, but that is a segment which is seeing much faster growth. And sir, last question on volume growth for the quarter, any color on that? What is the volume growth for the quarter would be very useful.
Yes. On the HI segment, yes, we have gained on our LV, which is a Liquid format we have gained overall. But the growth hasn't been there because of the extreme heat, which is our strong markets are North and the East. And what has happened is, overall, the category has not done really well in this quarter, owing to seasonal changes.
So our strong markets are the North, which is the Punjab, Haryana, all of those and the rest. So overall gains have been in those areas even with whatever the sales that we have done.
Coils have seen -- if you see as a category, it's a flat category, and it has much more seasonal impact. And again, larger contributions comes from the North and East for us.
Now giving you a perspective on the Liquid and the powder categories, we have launched Liquid Ujala and Henko, Henko Matic. Both are in the South right now and also on the e-comm channels. We are witnessing good acceptance by the consumers there. And we are seeing a shift especially in the Matic category from the powder to Liquid, which is as of now kind of growing at 40% year on. Powder, Matic powder and segment are at kind of 2% to 3% growth. Yes, and Liquid is at 5%, volume growth, yes.
Okay. And just overall volume growth for the quarter, what is the number for that?
Hello, the management. There's a question from Mr. Vishal Gutka. Please answer.
Ladies and gentlemen, the management line has disconnected. Please be on hold while we could [indiscernible] reconnected. Please give me a moment.
[Technical Difficulty]
Ladies and gentlemen, this is the operator. The management line has reconnected.
Yes. My questions have been answered.
The next question is from the line of Percy Panthaki from IIFL.
I was looking at your segmental growth and all of the categories have done well except for Personal Care, where the 3-year CAGR is only 5%. In fact, in most companies, this soaps division actually has seen a very good growth because it has seen a fair degree of price increases.
In fact, price increases in soaps have been higher than what they have been in most other FMCG segments. So despite this, only 5% and let's say, even if we haven't taken price increases as much as the competition, but still, there would be a fair amount of price increase. So just wanted to understand what is the reason behind this market share loss in soaps?
Yes, so market share, it isn't market share loss. We have grown. The only thing is we have taken a lot of price increases. And we are facing a sort of volume access going lower. But as such, we don't see the brand doing anything -- the performance going back. It's the price increases which has affected the volumes.
Ma'am, I'm talking about in value terms growth only. So if there is a price increase actually in most FMCG companies, that adds to the overall value growth.
Yes, yes. So yes. It is -- we also had the sanitizer and the handwash got added in the last 2 years because of the pandemic. And with the pandemic not -- I mean, people, they have taken it, they've come out of it more or less as we see a kind of decline or rather not as much acceptance like it was in the past. And hence, you see the growth or rather kind of flattish growth on those segments.
That was not figure in the 3-year CAGR. But anyway, let me take this offline. Secondly, on Pril, in your annual report also, you have given a market share for Pril across 3 years. And there is a declining market share there. So while we have done very, very well in Exo with market share increasing, your Pril market shares have been weak. So can you tell us what are the actions you are taking to gain back that market share?
Yes. We -- so we were predominantly doing well in the large PAT segment. And our focus has been now increasingly on these smaller PAT segments as well to increase the penetration. And the focus is more on the lower PAT segments here. And that's why we are seeing a shift or increase in market share.
Okay. Understood. Understood. And lastly, if you can give us some idea on what are your plans to restore margins? Before this cost inflation struck, we were at around 16% margins. Now we are down to 10%. And are we just relying solely on the commodity cost to come down? Or is there any other plan apart from that because the commodity costs may not come down?
So Percy, a very good question. There is a bunch of seasonal pricing actions which we have taken, say, in April, May, June, broadly around 1.5% to 2% of the total portfolio value. So we have taken some pricing actions, which should help as we move along.
Second is we hope and what we have seen already in the palm oil price is already coming down significantly. Now in this quarter, if you see on the Personal Care side of it, broadly from INR 12-odd crores of EBIT to it has come down to INR 2 crores, INR 3 crores of EBIT. So around INR 810 crores of loss has happened just because of one particular product.
And if the prices or the input prices have come down significantly, then we should definitely see an improvement there. This quarter, because of the HI being like, I mean, impacted significantly because of the lower fixed cost absorption, the loss or the loss in the HI category has been higher.
So I think bunch of these multiple levers, I would say, gives us the confidence that from H2 onwards, the margin profile should be sequentially improving. And maybe by end of H2, we should be back to our earlier margin profile of 15%, 16%.
The next question is from the line of Selva Muthukumar, an individual investor.
Just [indiscernible] and about how much market share they are improving in Mr. White segment? Can you throw some color on what is the percent capacity dilution if we compared to pre-COVID level and percent level? And last and final question is regarding how much cash we have available. Any possible near-term [indiscernible] is possible? Can you throw some color?
Sir, we don't give capacity on any individual brands, right? Overall, as a company, we have 22 factories, and we are operating at a 65% capacity utilization at this point of time.
Okay. Compare to pre-COVID level, is it same or we are slow?
No, we are now back to pre-COVID numbers.
Okay. What about cash portion available?
So we have a cash position of -- net cash of around INR 80-odd crores as of June 30.
The next question is from the line of Harit Kapoor from Investec Capital Services India.
So in your presentation, you mentioned in the category highlights that you've -- there's an extensive distribution, which is extensive distribution rise for all detergent brands. So can you just give some more sense on across the detergent portfolio where this expansion has happened on distribution maybe brand-wise? Or how do you want to answer that?
Yes. So on detergent, we have brands like Henko. We have MoreLight, Mr. White and Ujala IDD. Ujala right now sells in Kerala, Tamil Nadu, and we had extended it to West Bengal about 6 months back. And MoreLight and Mr. White are the brands that are seeing the momentum right now. They were initially there in 1 or 2 states as such. And we are seeing a lot of geographical expansion and acceptance also from the consumers. So hence, these 2 brands are growing.
Any sense on numbers in terms of what the distribution was for these 2 brands as a percentage of your total distribution? And what it is now? What could be a targeted number? Any sense on that?
So Harit, I think it's not fair to give specifics for each brand distribution. Overall, as you know, the distribution has been expanding on a pan-India basis. And we'll continuously keep doing that. And the results of what we have seen on a full year or a full quarter basis is what we have seen in Fabric Care, where some of the brands have done. We have grown substantially on a pan-India basis. So we continuously invest behind distribution across all the brands.
And Sanjay, can you just give a -- just remind me on the direct reach number, what are we at?
Yes, we are now at around 1 million on a direct reach basis, which we've crossed in March itself.
Okay. Perfect. The second thing was on the incremental price increases. So you said you put in about another 2% in quarter 1. Anything else which has been affected in quarter 2 thus far in terms of pricing? I understand incrementally, you may not want to take it up. But July, August, anything in pipe, which has already you've gone through depending on what competition, et cetera, has done?
Yes, it will be whatever competitive requirements are, definitely we'll do that, but difficult to predict for now. As of now, we're only predicting that we should get some softening of the input prices. And it obviously comes with a lag of a quarter with the raw materials already there in our basket. So hopefully, the impact what we have seen on or the price increases which we have taken in Q1, some partial benefit we have got. Hopefully, in Q2, we'll get the full benefit out of it.
So July incrementally have not done anything new, is that what you're saying?
Not really.
Okay. Okay. Okay. And last thing is on the Margo bit. I think earlier participant also asked the question. So you're seeing the impact of Margo is more to do with the fact that some of the hygiene growth kind of came off, and that impacted the numbers on the volume side there?
That's right. Also creep in price.
Yes, that's right.
Our next question is from the line of Gaurav Jogani from Axis Capital.
Congrats on good set of numbers. So my first question is with regards to the RM benefit that's expected to come because of the lowering of the RM prices. But you have target the [indiscernible] that shows that even in the July month if you compare Y-o-Y basis, some of the RMs have been [ additionally ] to that extent.
So do you expect the incremental impact on the margins versus Q1 to Q2 and then the softening to come in Q3? Or the -- the margins impact has bottomed out in Q1 itself that we should see incremental in Q2 onwards?
[indiscernible] And by end of H2 only.
I'm sorry, sir. Your voice is not audible. Can you repeat that, sorry?
[indiscernible]
Okay. Okay. Okay. And sir, one bookkeeping question rather to that end. As you know, the other income this quarter seems to be particularly high. The number [indiscernible] is around INR 5-, INR 6-odd crores and they've seems to be higher. So any one-off there? And also on the tax rate [indiscernible], what would be the guidance for '23 full year and '24 full year?
Yes. So this year other income -- this year includes there is a sale of our [indiscernible] factory, which can lead to a gain of around INR 828 crores. So that is part of the other income. And on the tax rate, we continue to do the match [indiscernible], and you can assume 17% to 18% for the full year of '23 and '24.
Sorry, you said 17% to 18%, right?
Yes, sir.
The next question is from the line of Pavas Pethia from Enam AMC.
I have a question regarding your HI business. I'm not concerned about your recent quarter, but if I look at the longer-term trajectory, we have been hardly profitable over 5 years, 7 years, 8 years. And it's not like that we have kind of leadership position here also, a second -- distant second, but still second. So what more we can do here to turn around the business? Or is this something we can have a look of divesting and perhaps concentrating more on Personal and Home Care?
This is a business which has a long-term value. This is a business where we have a leadership position. It's a large category. Unfortunately, it has a seasonal impact. This business is only 10% to 15% of our total portfolio.
So where we are moving is on a higher profitable and we have spoken in the past also, and we are going in the right direction. We are seeing the results. It's to move on to the Liquid side of the business, where all India market share has now again reached 10%.
So we'll have to be patient in this business. And we believe that once our mix of Coil to Liquid becomes 50-50, I mean, currently, we're at 30%, 35% Liquid, if it touches 50% over the next few years, this will be a good profitable business for us.
Okay. But is there any timeline for this turnaround to happen?
So we expect that our Liquid share should improve. The mix should improve in the next 2, 3 years. And then it should be a good cash flows from the overall HI business.
In the past, again, we have said that because we've been overinvesting on the Liquid side of it, if you look at the business pre-media trend, we have been cash-positive. And since we would like to do a brand investment, [indiscernible] is our brand ambassador there. So therefore, we are in this business slightly ahead of, the revenue is what we see. And we are seeing the results of our market share improving quite a lot over the last few years.
Okay. And is it necessary to have both Coil and Liquid in the product portfolio? Or can we look at a partial divestment?
This is a business where in the East of India where we have a Coil which -- where the company is known for. Over a period of time, as electrification is happening and as they paying capacity of the consumer, these are the same Coil consumers who will move to electric or to the Liquid side of it. So it's not an either all situation. We'll have to work on both the categories or some categories of HI.
Next question is from the line of Tejash Shah from Spark Capital.
Couple of questions from my side. Sir, first question pertains to Modern Trade and e-commerce cannel. What percentage of our current revenue is coming from these 2 channels?
Sir, I couldn't hear your question.
Hello. Am I audible? Hello?
Now a little better.
Yes. on e-ommerce channel.
Can you please repeat your question, Tejash?
Hello?
Tejash, we can't hear you, sir.
Sure. I'll come back in queue.
The next question is from the line of Abneesh Roy from Edelweiss.
I have a question on HI again. So essentially, in Q2 also, the season seems to be a bit challenging in most parts of the country have seen higher rainfall and UP, Bihar, Jharkand, Bengal, et cetera, a big deficit also, both of which are not good from an HI demand perspective. So would you say Q2 also is looking tough for the category?
Yes. So initially, yes, we are hoping for a good rainfall to happen. But yes, it has been raining North and the East. As you rightly said, Bihar is almost on the verge of declaring a drought. So we are certainly experiencing hopefully by August, September, if things improve, it should see some positive things.
Right. Second question is on quick commerce and e-commerce. We have seen quick commerce emerge as a very good opportunity in some of the FMCG categories. How relevant is this to your category? And if you could talk about the tie-up, anything different you are pushing here versus the broader e-commerce? And this year, do you see Modern Trade taking some share from e-commerce because people are now back to malls, et cetera?
Yes. So we are seeing growth both at the retail and the e-comm segment as well. And both have been healthy, and both are growing at healthy double-digit growth.
Ma'am my question was on quick commerce, 10-minute, 20-minute deliveries. It's relevant for the category?
10 minutes, frankly, I think people have kind of understood the 10-minute delivery isn't really a thing. See, for a housewife, as I understand the consumer, they do have a list of things to order. And I don't think anything which is delivered in a 10-minute thing is what the consumer is really preferring.
Unless there is something urgent, there's something that gets over fast, that's when mainly in food or items like that, is where the 10-minute delivery comes in. Not so much so in our segment.
Sir, last question on the powder to Liquid disruption, which some of the other peers are doing in hand wash. So do you think this has become big over medium, long term? And is Jyothy also working on some of the categories in terms of this kind of disruption?
It's -- we'll see how the market is trending and then take a call, frankly. We have our own opinions on that, which we wouldn't want to comment on that right now.
Next question is from the line of [ Shreya Sharma ], an individual investor.
My question is on your margins for the Dishwash segment. They have sequentially improved. And also there is an improvement in your market shares. So any color on that?
So it's a good thing. Somewhere the margins are looking good. Yes, we have taken a lot of effort and both the Pril and Exo has worked well. And if you look at the -- for this quarter also, around 8%, 9% has been the pricing growth. And 2%, 3% has been the volume growth. So we continuously keep investing into it. There have been a bunch of price increases, grammage reductions, focus on LUPs. All of those things have worked well for us.
Okay. And anything or any color on the volume growth in the Fabric Care segment?
Fabric Care volume growth has been good. Broadly, if you look at it, so 14%, 15% has been the price increases in this category and the balance has been on the volume growth.
Next question is from the line of [ Nisha Parik ] from [ Native Capital ].
My question is, can you just help the volume mix between rural, urban and on the rural side, what is the volume value growth? Are you seeing any differing trends between the [indiscernible] if you could just talk a bit about the demand outlook between [indiscernible]?
Yes. So I think if you look at it on a rural market, obviously, some more good LUP-driven market. And the volumes do get impacted when the prices of the products improve significantly. So -- but that's a market which we have to keep investing into it.
Urban is doing better on Modern Trade and e-commerce. Large PATs are doing good. So it's a mix of both stories where you have to keep focusing on both markets where -- and there is a revival of business and a revival of consumption or demand in rural India also, most part of India the monsoons are doing good.
Overall, all the government measures have helped the rural economy. So we look at both the urban and rural, both the growth markets for us. And we have a mix of products or brands which cater to both the geographies.
And what would be the volume decline in the rural area?
No, there's no volume decline. In both the markets, we have seen a positive growth only.
Got it. And my second question is on Personal Care segment. What is the near-term plan on the segment in terms of the products? And obviously, there are multiple subsegments which are possible in this. So is there a plan to launch any new summer brands or new products or new categories within this portfolio given, obviously, there's a more profitable portfolio generally for other -- some of the peers?
I think innovation will keep happening. And it continuously happen as and when there is a consumer demand. And we'll keep doing those activities across categories. It's not only in Personal Care. And we have some plans in Personal Care as well, and we will let you guys know at the right time.
Next question is from the line of Abhijeet Kundu from Antique Stockbroking.
So my question was on the margin in Fabric Care. We have taken price hikes. But still, there has been an impact on -- a good amount of impact on margins. Has it been due to lower the required price hikes taken in Ujala Fabric Whitener? Or is it across the board for everything, I mean? Ujala Fabric Whitener is one of your most profitable products?
And there -- and it's more rural focused. So if there is -- so has there been the decline in margins, the reason is due to Ujala Fabric Whitener? Or it's across the portfolio only less than effective price hikes have been taken -- required price hikes taken?
So sir, across portfolio, we have taken the price hikes as the competitive market allows us to take, which I'm saying is on the Main Wash. On the Post Wash, since we own the category, we have taken price hikes as required. So there is no delay or [ that's our end ] to take the price hikes.
However, we -- as you know, both the soda ash and LABSA prices have been on appearing rise. And therefore, the Fabric Care brand, category has seen a margin decline, which we hope in the next few quarters, if things improve, we should be able to increase our margin there.
And when I speak about April to June quarter, when we've taken price increases, yes, they have been more in the Fabric Care category. So overall, we should be in good margin profile in the next few quarters.
So essentially, as you had earlier also alluded to, if raw material prices remain at the current levels for the -- I mean, so going ahead with the prices already taken, you should ideally then see a sequential improvement in margin starting from Q3 even if it remains at the current levels.
Yes, sir.
Next question is from the line of Tejash Shah from Spark Capital.
Am I audible? Hello?
Yes, sir. We can hear you Tejash.
Yes, yes. So my first question pertains to Modern Trade and e-commerce. What percentage of our current revenue, not the quarterly, but overall revenue in the last trailing 12 months basis is coming from Modern Trade and e-commerce?
And are we -- in terms of market share, which of our brand portfolio is actually -- is higher indexed in terms of market share in Modern Trade versus General Trade?
Yes. So Modern Trade and e-commerce collectively contributes around 10% to 12% of our total portfolio. And market share, if you're comparing trade to GT, it will depend on each brand to brand. But overall, we have -- keep a good parity on our market share and not -- never trying to go over indexing our market share in Modern Trade just to get some quick large PAT sales and stuff like that. So we always keep a good mix in both GT and MT, and that's working well.
So sir, the question was actually on specific brands only. Which brands are faring better versus GT on MT within our portfolio?
More in Dishwash, which is Exo and Pril and some of the premium brands of Fabric Care, which is Henko.
Okay. And are they gaining market share in last 2, 3 years in Modern Trade at least?
Yes, sir.
Okay. Second question is for Ms. Jyothy. Ma'am, since you took over, it has been one crisis after another. And you started with a lot of initiatives to make changes in sales engine that we have, our route-to-market efficiency, [ fill ] rates and all. So where are we on all those parallel initiatives, which obviously would have got muffled because of all the crisis that we have seen parallel playing out on the macro front?
Yes. So all the initiatives are in place, and I have a good team who is actually making things happen. And we are very positive of the future that's ahead of us. These are all crisis. I think it will come and go. We are very much optimistic. We are adding one brick every day. And hopefully, you will see a better picture in the future.
Ma'am, if you can elaborate a bit more on the initiatives?
Yes. So one is on the distribution, second is on technology, back to distribution, investment on the brands and few innovations in the pipeline. All of these put together should definitely add to our existing strength.
And have we added some team strength to achieve those objectives? Or is it the same team we are actually trying to achieve all this?
It's the same team that will continue.
[Operator Instructions] The next question is from the line of Senthil Manikandan from ithoughtpms.
Question on how private label will impact our categories. So the same categories we [ collected ], which was categories impacted by the private label?
And my second question is with respect to the distribution on the Fabric Care side. So in your growth initiating strategy you've outlined, so how much you have achieved and how much is pending, particularly from the distribution point of view?
Sir, we couldn't hear your second question.
Yes. Yes, sir. Second question is on the Fabric Care side, what is the potential of distribution expansion that can happen over the next 2 to 3 years?
Yes. So on that, we have a few brands in select geographies. So the thing is we are taking it each -- geographic expansion on each of these brands. And that will -- in the future, you will see all those growths coming in. We have pockets of strength, and we have certain brands in certain markets like Kerala and Tamil Nadu, we would be expanding it in the other geographies of India.
Okay. So my first question was on the impact of private labels on our different categories.
Yes. So private label, frankly, as of now, there's no impact. And private labels were there before as well. Before -- they have always existed. But we as -- there has no -- not been any specific impact, and our market shares are intact as of now.
And we don't see that affecting much in the future because I believe in brand part and consumers also kind of believe in certain brands. They test certain brands. So I believe, if at all, it will -- but it wouldn't be a kind of threat to any of the branded players.
Okay. So just last question. So on the previous call also you mentioned that overall, our distribution reach has crossed 1 million unit, 1 million retail outlets. And you mentioned that target should be -- you should breach the industry benchmark. So if you can quantify what is the industry benchmark that you're [ trying ], overall our distribution?
Yes. We have that industry benchmark with us. We wouldn't want to comment anything on that. We are increasing our -- putting all our efforts on increasing the retail coverage. But we didn't want to specify anything here.
As there are no further questions, we have reached the end of question-and-answer session. I would now like to hand the conference over to the management for closing comments.
Thank you, everyone. Thanks for asking all these questions and going through our presentation and to having a discussion with us this afternoon. We look forward for any further questions and clarifications you require. And look forward to catching up with you next quarter again. Thank you very much.
On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.