Jyothy Labs Ltd

NSE:JYOTHYLAB

Earnings Call Analysis

Jyothy Labs achieves strong revenue and market share growth.

Jyothy Labs reported an 8% increase in revenue and a 10.8% rise in volume for Q1 FY '25. EBITDA margin improved to 18% from 17.1% last year. Fabric Care grew 8.8%, while Dishwash expanded by 7.1%. The Personal Care segment, led by the Margo brand, saw a 10.9% increase. Management aims for double-digit sales growth, emphasizing rural markets and modern trade channels. With robust distribution and innovative products, the company maintains a debt-free balance sheet and strong cash reserves of around INR 650 crore, setting a positive outlook for sustained growth.

Solid Start to FY '25

In the first quarter of FY '25, Jyothy Labs reported a healthy revenue growth of 8% in value terms and an impressive 10.8% in volume, signaling a robust start to the fiscal year. The company's ability to increase its market share across its brands demonstrates a consistent operational performance despite competitive pressures.

Revenue and Profit Performance

The revenue growth, when viewed over two and three-year bases, reflects an annual growth rate of approximately 11.5% and 12.2%, respectively. This growth can be attributed to effective product strategies such as increased grammages and selective SKU price reductions. The EBITDA margin improved to 18% from 17.1% during the same quarter last year, with net profit also rising by 5.7%. It is important to note that last year's profit comparisons include a one-off income gain of INR 9.6 crores from property sales.

Key Growth Areas

The Fabric Care segment led the way, posting an 8.8% growth propelled by brands like Sujana Fabric Winer and Dana Crispin Shine. Increasing penetration in the premium segment has been crucial. The Dishwash category, encompassing brands Exo and Pril, also exhibited solid performance with a 7.1% increase this quarter, influenced by aggressive advertising strategies withdrawing from traditional routines towards modern media channels.

Focus on Consumer Engagement

The company is keen on enhancing its consumer engagement through extensive marketing campaigns across its product categories. Initiatives like multimedia advertisements for the Ujala brand have fortified brand presence. Jyothy Labs is also rolling out new product forms such as larger liquid detergent packs, catering to both premium and value-oriented customers.

Strategic Focus on Distribution

The management emphasized the importance of expanding distribution channels, which has benefitted both the urban and rural market segments. With aggressive distribution investments, Jyothy Labs aims to enhance accessibility and customer awareness across its brand portfolio. This strategic focus has resulted in substantial market share gains particularly in underperforming regions.

Margin Outlook and Future Guidance

Looking ahead, the management is optimistic about maintaining or surpassing historical EBITDA margins of 16-17% on an annual basis. However, they remain cautious, projecting margins between 16% and 17% for the next few quarters with a quarterly high seen at 18%. They noted potential operational efficiencies could further enhance margins.

Cash Position and Capital Allocation

As of the current fiscal period, Jyothy Labs reported a healthy cash position with reserves exceeding INR 650 crores. The management is in a cash conservation mode, strategically positioning itself for future growth opportunities rather than immediate shareholder payouts.

Investment in Rural Markets

The management reiterated its commitment to ramping up rural market penetration. Anticipated recovery in rural demand, influenced by favorable economic policies and weather conditions, could serve as a catalyst for future growth. The company is well-positioned to leverage this shift for further expansion.

Challenges and Market Dynamics

Despite the positive growth indicators, the company faces challenges including intense competition particularly in the Fabric Care sector. The management remarked that while they currently enjoy market share growth, vigilance in product differentiation and distribution robustness remains critical in maintaining competitive advantages.

Earnings Call Transcript 2025-Q1

[Operator]

Ladies and gentlemen, good day, and welcome to Jyothy Labs Q1 FY '25 Conference Call hosted by ICICI Securities.

[Operator Instructions]

Please note that this conference is being recorded. I now hand the conference over to Karan Bhuwania from ICICI Securities. Thank you, and over to you, sir.

[Karan Bhuwania, analyst]

Good afternoon, everyone. It's our pleasure at ICICI to host Q1 FY '25 results content call of Jyothy Labs. From the management, we have M.R Jyothy, Chairperson and Managing Director; and Mr. Sanjay Agarwal, Chief Financial Officer. I'll add on the call to the line to the opening of us, [indiscernible] Which we can talk of your L.

[Sanjay Agarwal, executive]

Thank you, Karan and good afternoon, everyone. I welcome you all to the conference call of Jyothy to discuss the financial performance of quarter 1 FY '25. The results and investor petitions are available on our -- on the stock exchange and on our company's website. I hope everyone had a chance to look at it. Overall, there's been a healthy consistent operational performance. with rise in market share for each of our brands. The year has started on a positive note with revenues growing by 8% in value terms and 10.8% in volume.

On a 2-year and 3-year ADR basis, it works out to 11.5%, 12.2%. The gap in value and volume growth is primarily due to increase in grammages and select SKU price cuts. On EBITDA margin, for the quarter, we stood at 18% versus 17.1% for the same period last year, increased by 13.7%, and our net profit grew by 5.7%. Last year same quarter, we had a gain from one-off sale of property of INR 9.6 crores in other income. Hence, the net profit when you see is not strictly comparable at the PAT level. So I mean, overall, if you see, we have delivered higher revenue growth in the last few years versus the industry. And this is coupled with increasing operating margins and a debt-free balance sheet and a healthy cash position, which is empowering our or will also empower our future growth. And we'll continue to focus on our rural growth or rural market, which is giving us a sustainable advantage. Our consumer franchise is getting stronger every quarter, and we have been able to strengthen our market share across all our brands. For this quarter, all of the segments have reported positive growth.

In terms of key category performance, Fabric Care is doing well, it increased by 8.8% in this quarter. By post-wash brand, Sujana Fabric Winer, and Dana Crispin Shine has delivered consistent growth now. Our main watch brand, detergent brand, Senko, Kujala, IDD, Mr. White, More Light, they all have also accelerated growth across all channels. In our Post Wash portfolio, Ujala Supreme, we've launched the Multimedia campaign nationwide with the brand image as Panu. And to brand presence in Ujala, Krisp and shine, we've been running campaigns featuring Superstar in key other markets. In addition to a liquid detergent portfolio of Ujala and Henko, we have also introduced in More Light liquid detergent in 5-liter one pack. And there is an intense competition across the detergent or the fabric care portfolio, but we have expanded our distribution. Lot of ground level activities and our product differentiation is helping us driving this growth in our Fabric Care portfolio. We are focusing on the premium segment and also on the value offerings. And the objective of the strategy is to build scale across the different categories.

In Dishwash category, both Exo and Pril continue to do well with 7.1% growth for this quarter. Both the brand, Exo and Pril -- we've been investing aggressively across outdoor media and out-of-home apart from the conventional medium. This has also boosted our growth and all our brands are considered in a preferred choice among the consumers in the utensil cleaning category. In the interest of time, I mean, you would have seen our investor presentation, which captures several campaigns we are running on conventional media and digital platforms. So I'll skip that. In the household incentive side segment, our sales increased by 2% in this quarter. The category has witnessed recovery. However, this quarter, again, the business was impacted because of extreme summer in North and East of India, which are our core focus markets.

And I mean we are focused on growing our saliency in our liquid waferizers with campaign featuring Super Star wherein we have a unique feature or automatic feature of our machine, which is unique in the category. And hence, the focus is to grow the share in the business. Finally, our Personal Care segment, which is primarily the Margo franchise. It has registered a good growth of 10.9% for this quarter. As you know, the new base Margo portfolio is preferred by the consumers for its authenticity and several ongoing initiatives. We've been involved using influencers and social media and key markets to raise awareness and encourage trials targeting the youth primarily. In summary, we continue to focus on volume-led growth and achieve higher scale of business operation. We have delivered or consistently delivered double-digit revenue growth for the last few years, and we'll strive to build scale with relentless execution and grow our brands market share.

We believe the efforts taken to strengthen our distribution, investment behind brands and innovation. On an annual basis, we aim to have double-digit sales growth, primarily led by volume. Also on the margin front, we should be able to hold on or do better than our historical EBITDA margin of 16% to 17% on an annual basis. We continue to focus on introduction of relevant innovation and expanding our sales and distribution network. In addition, we are leveraging on the modern trade and e-commerce channel, which is posed for higher growth. With this, I'll finish my opening remarks, and we're happy to answer any questions or clarifications you may have. Thank you.

[Operator]

[Operator Instructions]

Ladies and gentlemen, we will wait for a moment for the question you assembled. The first question is from the line of Vishal Gutka from HDFC Securities.

[Vishal Gutka, analyst]

First one, [indiscernible] risen. I think that has been launched at a disruptive price point of INR 70 per liter in elected MD outlets. I just wanted to understand what is the margin profile? Any quality player to be helpful? Will you sell somewhere near to the company-level margins? And how is the brand doing? I believe it's launched towards the end of the quarter. It might be early, but whatever trends you can give on that?

Second question on the personal care front. The growth has moderated to 11%, right. Last year, we saw around 20% growth rate for the segment as a whole. So what are the plans to revise? And the new variants that you had launched in Margo, I think 1 year has passed by. So any flavor on that, what is happening, how things are shifting about or that will be very helpful.

Third question on capital allocation front. So cash is approximately INR 60 crores -- and on other side, the dividend payout has gone down from 60%, 35% now. The last 3 years average even per was 60%, up down to 35% in 24. So how are we thinking about capitalization going forward? Thank you. Those are the questions from my side.

[Moothedath Jyothy, executive]

Yes. So on More Light, yes, we have launched a liquid event. And this is -- if you see there's the liquid detergent as a market, that segment has been doing well, and we see a lot of players come in there. and our wishes to be there for every consumer. And right from the premium end to a price where it is affordable for the customers. in a situation like that we are in today, where the consumer demand net. We want to entice the consumer we want to give them value, and we want them to also try our liquidities.

And that's the main reason to launch that at that price point. While margins I won't be able to share right now -- so that's the intent that more and more consumers come into the liquid detergent for it. On Personal Care, double-digit growth is a fairly good growth that is there. and our brands continue to do well in a market like this. And the new variants are also on an average doing well. So that's on personal care.

[Sanjay Agarwal, executive]

And Vishal, on the utilization of cash, as per the Board decided capital allocation strategy, yes, dividend is one way to reward the shareholders. And currently, we have been conserving cash for any future opportunity, which we may consider. So right now, we are in a cash conservation mode for any future opportunities.

[Operator]

The next question is from the line of Percy from IIFL.

[Percy Panthaki, analyst]

I just wanted to understand a little bit of the flavor of your growth. Is it coming mainly? I mean, is it -- is your state mix changing? Is it that you are very weak in some states and -- now the growth in those states is significantly higher than the national average. Is that the source of growth? Or is it that [indiscernible] getting this kind of growth uniformly across geographies?

[Sanjay Agarwal, executive]

So it's across the board. I think the results of our distribution expansion is paying off. and states which have been doing well, they are doing further better with the higher A&P spend, which we are doing and markets where we were less or whatever dominant is where the several big spends, which we've been doing has been helping us.

So no, I wouldn't call out any particular state, which is doing much better than the rest. I think it's a mix of everything. Also, the modern trade and e-commerce business has been doing well. So that's something which is also driving the growth.

[Percy Panthaki, analyst]

So geographic market states over the -- sorry, market shares over the last 3 years or so have not changed much in wherever the market shares are low, they remain at that same level and wherever they are high, they also remain. I mean, there's no sort of case to -- I mean, there's no on-the-ground evidence to suggest that wherever the market share was low, the increase there has been higher than what you have normally seen in terms of market share growth?

[Moothedath Jyothy, executive]

See, we have seen market share growth across our segments this quarter. And in fact, in most of the geographies. So as this thing is to, while we have been very out strong in terms of XO. East is an example where some very low single digits, we are into double digits.

So we are gaining market share across the country, and we'll continue to focus on our distribution. We'll continue to offer better quality products compared to the rest. And that's where we are.

[Percy Panthaki, analyst]

So that is exactly what I was hinting towards that like you no, your Eastern region growth is higher than the southern region growth, right? Because you were under-indexed in East. So that kind of story is playing out in other categories also.

[Moothedath Jyothy, executive]

Yes. It is a mix yes. It's a distribution and brand investments that we are continuously doing is yielding us better results.

[Percy Panthaki, analyst]

Second question is on gross margin. this quarter, I think nobody else has taken a price cut this quarter. I mean, last quarter, you had a 0% pricing this quarter, you have a minus even , there is a slight difference in the pricing but not to the extent of 300 basis points. So what is happening there? And secondly, related to this, despite such a sharp price cut in 1 quarter, Q-o-Q as well as Y-o-Y your gross margins have improved. So what is the source of that margin expansion?

[Sanjay Agarwal, executive]

So Pat, see, gross margins is dependent on, in our case, on the product mix, certain scale benefits you get and the operating efficiencies or efficiencies in the business operations also drive the gross margin.

So again, the price cuts, which you're referring to, they have been done in -- across the portfolio for us in the Dishwash or more so in Dishwash than in Fabric Care and Personal Care.

So if you look at the weather -- I mean, at this level of RPM prices, we'll be comfortable with the gross margin range of 49% to 50%.

[Percy Panthaki, analyst]

And finally, on EBITDA margin, you have done about 18% EBITDA margin this quarter. And every quarter sort of you're doing slightly better than what we expect. So are you being a little conservative in terms of your guidance? And what is the reason that this 18% margin will not sustain going ahead, if at all?

[Sanjay Agarwal, executive]

I mean just the beginning -- I mean, the first quarter of the year. And as I mentioned, that the RMPM prices are also volatile. We have seen how things have shamed out in the last 3 years. And our stated objective has been that we want to invest more behind the brands. We want to keep expanding the distribution because that's where there's a lot of scope for us. So -- and hence, we want -- we're comfortable the 16% and 17% range. Yes, this quarter in '18. But as we move along, I think we'll be able to guide you much better.

[Operator]

The next question is from Shirish Pardeshi from Centrum Booking.

[Shirish Pardeshi, analyst]

I have a basic question. In the Fabric Care post wash, I think we have been talking and getting more penetration in the liquid side. But even our power detergent is also very strong. So will you be able to give me some color what is the growth we have expected? Or what is the growth we have delivered on powder and liquid specifically in this quarter?

[Sanjay Agarwal, executive]

So as you know, Shirish, [indiscernible] is on a smaller base, and it's growing faster. So the growth rates are going to be much faster and powder category is much steam. So I think I can just offer you that the base numbers are less on liquids growth is much higher. I think I would just leave it there. The fact that we launched [ Janina ] and now with More Light large pack 5 liter, demonstrates that the folds the category is doing -- it's good for the country, good for the consumers that they're using a better quality product. So yes, we are also focusing on that and trying to get to the consumers to use a better quality product.

[Shirish Pardeshi, analyst]

Let me step back and ask me a little different question. If the industry is right because you guys have given a product at a very competitive price. So is -- do you think that there is a bottom of the pyramid, which is there is a fast shift and there is a price propensity which will bring in more customers to the category? Is that the thinking there?

[Moothedath Jyothy, executive]

We can't hear you talk to lead is. Could you repeat the question?

[Shirish Pardeshi, analyst]

So I'm saying we have launched 5-liter pack and I think at a very price competitive range. So what I wanted to understand is the industry structure is changing much faster that every customer is now trying to look at and trying to expement the liquid.

[Moothedath Jyothy, executive]

Yes. So we see this more the liquid detergent adoption more from South, which is a market which responds to such in the new as the people are more experimentative in that sense. They also have money to invest and all that. So you see this more in the South than modern trade e-com and then in the metros. So yes, we want -- and like I said, that many players have come in and like you see that in powder detergents, there are various segments. The liquid diverse is also kind of mirroring or you're seeing that kind of growth and price points at different levels.

[Shirish Pardeshi, analyst]

Second, on Margo, I think historically, Margo is a very strong brand in the East. But over the last 1.5, 2 years, we have expanded in this franchise. And -- we've also complemented with the adjacencies. So maybe in non-East market, which are the segments or which are the subsegments you are seeing a stronger growth on the Margo franchise?

[Moothedath Jyothy, executive]

So it's not just East. For as Margo has been delivering, if you see in the last 4, 5 years across the other states as well. It's not just ease for us. Margo's growing stronger in.

[Shirish Pardeshi, analyst]

And the last question, I mean, I did understand what Sanjay gave the explanation on the margin front. But the question here is that are we left because what we also gather is that if rural comes back and this is what both the syndicated data agencies are saying canter we heard in the morning, they are saying that the rural growth will be much faster. So does that mean that the price increases can come a little faster instead of second half, maybe end of second quarter?

[Sanjay Agarwal, executive]

So we -- I don't think we are looking at any price increases for now, whether it is now or in the H2, at least for now. So current focus is volume growth. And at these price levels, I think we are having decent margins to invest in the business and have they were to be shareholders as well.

[Shirish Pardeshi, analyst]

No, the reason I'm asking, you've done a good fantastic job delivering double-digit volume growth. So this volume growth will continue in the second half also. That's my question. I mean it's too early to talk about, but if the rural growth comes back, we can build on that.

[Sanjay Agarwal, executive]

So I think [indiscernible] for now. I think what we can only see between the quarter, things will vary. And -- so on a yearly basis in how we would aim at least from the external perspective, -- and it will change over quarters. I mean over different quarters. But the aim is to continue the same momentum, which our double-digit volume rate growth for the annual basis. and which will vary in different quarters.

[Operator]

[Operator Instructions]

The next question is from Abneesh Roy from Nuvama.

[Abneesh Roy, analyst]

Yes. My first question is on the tire business. So essentially, the market leader has come out with a disruptive product would you be concerned on that? Because the efficacy claim is much higher. And second, if there is high rate, is that again not adverse for muscular population and -- so Q2 also, the growth could be weak for the entire sector because of very high range, which is happening?

[Moothedath Jyothy, executive]

So on HI, see, we are very focused on our LV and we believe that we have a great product with us. We have an innovation with us. and we have a tried and tested molecule with us. The very reason that we have gained market share is proof of all of that. And we are very confident on our product and we don't have much concerns with what happens elsewhere.

And on the question on rains, yes, anything in extreme is that -- so with the high heat eye summer, high winters and anything that has to do with higher amount of rain, yes, the markets will get washed away. So let's see, hopefully, we should be able to still grow the market, especially in the tray segment.

[Abneesh Roy, analyst]

One follow-up on the market share gain. So if I see 3 years and 4 years, you have a dip in terms of CAGR. And if I see the market leaders' Q1 update, -- that also suggests that RHI is also very similar in terms of Y-o-Y, almost flattish, which is in your case also almost flattish, low single digit. So where is the market share gain coming from? Would it be from the #2, #3 player because it's a 4, 5 player market only, right? Who are you gaining from?

[Moothedath Jyothy, executive]

Sir, we wouldn't want to comment on that. And the thing is the same protein that we have gained market share. We have gained 300 bps compared to last quarter, and that's good enough and a good direction for us. to show that our efforts are working. That's where I can comment.

[Abneesh Roy, analyst]

Last question would be on body wash. So essentially, there again the market leader is doing a disruption. The brands in which they are doing Lux LIBOR may not be competing necessarily with Marco. But just want to understand, I'm sure, being a soap manufacturer, -- how impactful do you think such a disruption is in the past also, it has been right, but TFM and later being less. Do you see customers asking for such products? Because if they ask, I think, in Margo also, is there a use case for doing that in Margo.

[Moothedath Jyothy, executive]

While it's a good suggestion. We'll look into it. We don't have much to comment on that segment right now.

[Abneesh Roy, analyst]

But till now there's no impact because of the market gates disruption, right? Too early for that?

[Moothedath Jyothy, executive]

Yes, yes. I think we are growing well on our brand. So that's what.

[Operator]

The next question is from the line of Dhiraj Mistri from Ant.

[Unknown Analyst]

Onion good set of numbers. So I have 1 question regarding personal care category. So if I look at FY '20 numbers, you were making somewhere around 20% plus EBITDA EBIT margin, -- and over the last 5 to 6 quarters, there has been quite a few volatility in their EBIT margin personal -- so how do we see that going ahead? That's where the EBIT margin as a company, where do we look at EBIT margin to settle down?

So see, over last 3, 4 years, as you know, the brand has been doing well -- and the key call raw material is almond you know how the parent prices are so volatile. -- and it's an imported product. So therefore, not a flat cost going up and down and now right now, freight cost will be going up. also impacted.

[Sanjay Agarwal, executive]

So the margins are dependent on the palm oil prices. which we have been updating every quarter when the prices are going up and all of that. Now also last year or so, we have launched 3 new variants in it. And we have seen the success of those variants Obviously, we had to do higher A&P to launch that. As you know, we had VanajaAshikada there, which is really done wonders. So this quarter also and in the last 2 quarters, we have seen higher E&P and it will vary across quarters, but the margins are intact, being the personal care or mark as a franchise. So that's not a concern. You want to grow the franchise much better. That's the...

[Unknown Analyst]

Yes. And second question in that category only that we have done sites launches. What would the contribution of new products in Personal Care and also from the overall company's perspective?

[Sanjay Agarwal, executive]

Sir, the launches were done last year, what we are happier or satisfied is that there are repeat purchases and gives us a lot more confidence in our new -- or further initiatives of doing innovation and new launches. So the numbers -- my apologies, I will not be able to speak specifics between what the green Margo soaps and what the new variants are that split. -- but all of them are doing well, and that gives us a lot of confidence for the future.

[Unknown Analyst]

And sir, can you give -- last question from. Can you give some color on the growth in terms of user market versus urban market? And also in terms of region that east and south compared to West and something like that?

[Sanjay Agarwal, executive]

So I think for us, all markets are doing well. Rural market was a concern for a lot of us. But things are now started to looking up. And the union budget also gives a lot of focus on job creation. And so that is helping, especially now with the monsoons coming on track. That will also help in the rural growth. We, as a company, have products which do well in dog markets and our distribution has also expanded in the last few years in the rural. So we are quite confident that with the growth or pickup in the rural demand, we will be able to capture that.

[Unknown Analyst]

But was it higher compared to a market during the quarter?

[Sanjay Agarwal, executive]

No, no. There's nothing like that it's been higher. It's just that the challenges which we were seeing has now been let out. And going forward, we can be more optimistic on the rural demand.

[Operator]

The next question is from Gaurav Jogani from Axis Capital.

[Gaurav Jogani, analyst]

So I have a couple of bookkeeping questions. So what is on the other expenses. If you look at the other expenses, it has gone up by around 20% out. So is there any one-off in that? Or that's a state other expenses that we can expect going?

[Sanjay Agarwal, executive]

No, sir. It's very much in line with the overall sales increase and overall expense increases. It varies -- I mean, again, it can move between one quarter here and there. But very much in line, there are no one-offs in the other expenses.

[Gaurav Jogani, analyst]

So sir, likewise on the depreciation, it also depreciation, both on a Y-o-Y and a Q3 basis has seen a share. So because we don't have any CapEx also. So what is this with regards to.

[Sanjay Agarwal, executive]

The overall CapEx, we believe should be in the range around INR 50 crores to INR 60 crores for the full year. And depreciation also has been in line with that.

[Operator]

The next question is from the line of Nihar am from Ambit.

[Unknown Analyst]

Sir, I have 2 questions. First was on the Dishwash category. While easing market share gains, what explains the market share loss that perils been specifically over the last few years?

[Moothedath Jyothy, executive]

We have gained in both.

[Unknown Analyst]

Okay. I was referring to the annual report data where at least I see that phase gone from 17% to 14%.

[Moothedath Jyothy, executive]

Yes. We have gained compared to last quarter. The recent quarter we have gained market share both in [indiscernible]

[Unknown Analyst]

And if I say compare it to 3 years by where it's looking lower, what would explain that?

[Moothedath Jyothy, executive]

See, directionally, we are growing. That is where I would want to stop it, and we are investing for us internally also we are growing in double digits in terms of volume.

[Unknown Analyst]

Sure. The second question was just to understand the distribution better. The absolute reach for us has been more or less similar at around 2.8 million to 3 million outlets, wherever direct rate has been increasing -- so is the focus ahead to obviously focus more on direct distribution and get more revenue per store that kind of perspective or they're looking at an absolute distribution in sees also as we by focusing on new states.

[Moothedath Jyothy, executive]

See, for us, are distribution makes sense. But from a future listing, it will be both direct and indirect as well.

[Unknown Analyst]

Do we have a specific outlet target for the coming year?

[Moothedath Jyothy, executive]

We wouldn't want to say that right now.

[Operator]

The next question is from the line of Amit Purohit from Elara.

[Amit Purohit, analyst]

Sir, on modern trade, what would be the sales of modern trade now, say, 2, 3 years back?

[Sanjay Agarwal, executive]

So modern trade and e-commerce business is around 15% of our top line. So that's what it contributes now and it has been growing at a much faster.

[Amit Purohit, analyst]

And 3 years back, this number would be [indiscernible] ?.

[Sanjay Agarwal, executive]

It would be around 6-odd percent.

[Amit Purohit, analyst]

And -- in other markets, I mean, basically, when I look at the South market, is it safe to assume that the entire product portfolio, excluding the HI portfolio would be there available in the modern trade in South market and whereas in the non-South market, is the entire range available in the modern trade? Is it a right assumption? Or we are still to build up that?

[Sanjay Agarwal, executive]

Yes, mostly, yes, absolutely right.

[Amit Purohit, analyst]

So I mean in the non-South market, also the entire range is available in voluntary.

[Sanjay Agarwal, executive]

Correct.

[Moothedath Jyothy, executive]

Yes, yes, selective that way. But yes.

[Amit Purohit, analyst]

So what is driving modern trade growth? Is it new store expansion in monitored or -- how do you think about.[indiscernible]

[Sanjay Agarwal, executive]

So it's been a combination of a few things. A, winter's big certain specific SKUs, which have been introduced for the water dridmarket, which is a large packs and focus on as a team to -- because that business is doing well as per se, e-commerce and modern trade. And we have been investing on our A&P spends and which is also gathering the momentum there. So those are the 2 specific things. And we have been there with all these brand or whatever the modern players and e-commerce players. So I think it's now catching up on the fast growth with us.

[Amit Purohit, analyst]

And sir, lastly, I mean, South has seen a good amount of rain. I mean, in excess of rail, does that actually have any positive or negative stress on any of the category? Or is it not so relevant in terms of [indiscernible]

[Sanjay Agarwal, executive]

It's annual rent. I mean every year, it happens. So it's nothing like anything specific will happen for us on the rains. Yes, monsoons do make a liquid for our HI category, but certain markets we are not that strong update. So what Yes. So therefore, it remains business as usual, Amit.

[Operator]

The next question is from the line of Harshad from Investec.

[Unknown Analyst]

This is Harit from Investec. I just had 2 questions. this reduction in this loss in the HI business, is that completely attributable to the mix stream between LD and coil for this quarter? Because obviously, the revenue growth hasn't been big neutral.

[Sanjay Agarwal, executive]

Is that the only question? Do you have other questions?

[Unknown Analyst]

I have 2 more. I can ask them all together.

[Sanjay Agarwal, executive]

Sure. So on HI, I see the EBIT loss has been lower Again, it will vary on product mix. Yes, so liquid share has gone up, and therefore, to some extent, the EBIT loss has come down. And again, this would vary on quarter-to-quarter. It depends on the spend, which one has done on that category Yes.

[Unknown Analyst]

And just a broader question on margins. If you look at over a longer term, 3, 4-year period, the assumption is that HI losses will keep coming down as our mix improves in probably next few years' time, do not have any of the other losses. As one of the other participants also mentioned personal care will -- can probably see an acceleration in profitability from what did you compared to F '24 levels, given that those levels are a little bit lower, so over a 3, 4-year period, that can go up. So over a slightly nominal term period, given fabric and Vishay in the set isn't there enough kind of scope to improve the profitability, overall margin structure of the business, even from these levels of or 17% or which you might hang on to for the next 15 months?

[Sanjay Agarwal, executive]

Is your concern that HI will be running may continue into losses, and therefore, your margins may we capped here or you are saying that the -- still not got the main point which you want to.

[Unknown Analyst]

My point is that I will not will actually become profitable at some point as the mix you get to optimum mix. And we will foresee margin expansion in Personal Care also from low levels of 24% over the next 2, 3 years. So then over a slightly medium to over slightly longer term, even the more scope for margin improvement from current levels of 17-odd percent over a slightly longer term.

Yes, right on the business as a whole.

[Sanjay Agarwal, executive]

These will be bodes for us, HI contributing positive. And personally has been a good margin business. And at those levels is when we are making 16%, 17% of guidance in this quarter, 18%. But yes, mathematically, yes, it -- these businesses also start doing much better numbers over the medium term. The margin profile would improve from here.

[Unknown Analyst]

And just a couple more on the smaller sites. One was on the pricing. So in absence of change in the pricing structure, as you mentioned, there's no real need to take pricing now, would 1 assume that this minus 2% to minus 3% kind of number would be the case for the balance part of the year as well? Or is it too early to say?

[Sanjay Agarwal, executive]

Yes. I mean, these cuts prices which are taken will remain there for the balance year as well. So there would be a decline to that extent.

[Unknown Analyst]

And last thing was on the south, non-South. So South is still about 40% of the business. If I remember correctly, 3, 4 years back also, I think this number was fairly similar, not very distant. So again, fair to assume that this growth in the last 3, 4 years that you've been continuing to do double-digit in fact more than 3 closes in 5 years. has been secular in South and on South since the share is not dramatically shifted -- or am I reading some am I reading the wrong?

[Sanjay Agarwal, executive]

Yes. So it's broadly the same range of and non-sort.

[Unknown Analyst]

Which is the same case a few years back as well, yes after there. Got it. Those are my questions. I wish you all the best.

[Operator]

The next question is from the line of Vishal Punmiya from YES Securities.

[Vishal Punmiya, analyst]

And congratulations on good volume growth and margin performance this quarter. I actually just have one question. Almost a year back, there was a comment in a media interview regarding the ambition of taking personal care to of 15% kind of mix for the business from the 11%, 12% range. Just wanted a clarity in terms of whether this includes -- any inorganic accretion that you do? Or is it just the organic growth that you are expecting from the segment?

[Moothedath Jyothy, executive]

See, that's the risk that we want to be, I mean, to take from existing 12 to 15, and we'll see all possibilities, both organic and [indiscernible] .

[Vishal Punmiya, analyst]

Any time line for that?

[Moothedath Jyothy, executive]

No, not.

[Operator]

The next question is from the line of Vishal Gutka which is a follow-up question from HDFC Securities.

[Vishal Gutka, analyst]

Just one follow-up question, when you especially expect the aspiration NPDs because apart from a disruptive launch in the liquid digital side, we are not seeing much. So when should we expect that? Any color on that?

[Sanjay Agarwal, executive]

So chart, we've been doing our bit. And in terms of launches, this hold out, there will be some things -- I mean a market would require an astray, we'll definitely launch that. And our organic business, what we are currently doing is also pretty fine. So you will hear more about the entities in the coming times.

[Operator]

Thank you very much. I will now hand over to Mr. Karan Bhuwania from ICICI Securities.

[Karan Bhuwania, analyst]

Two questions. One, can you share what is the share of [indiscernible] enteral revenue. And second, also can share more cash on books of.

[Sanjay Agarwal, executive]

So Karan, we couldn't hear you. Could you just speak louder?

[Karan Bhuwania, analyst]

Can you please share what is the share of liquids in your overall revenue basically liquidity genetically test, etcetera? And secondly, what is the cash on the books currently?

[Sanjay Agarwal, executive]

So Karan, as I mentioned, currently some previous question, I mean difficult for us to give a number for the share of liquid. It would have been on a low base, it's growing much faster. The category is doing well. And with our several introductions in Henko, Gala and now with More Light, the growth is much faster than the detergent. So I just rest in there and the cash balance now in the range of around INR 650-plus crores.

[Operator]

Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments.

[Sanjay Agarwal, executive]

Sure. Thank you. So thank you all for attending the call, and I hope we have answered most of your questions and queries. If you still have any further queries, you can reach out to us, and we'll be happy to address them all. And thank you, Karan and the team at ICICI for organizing this conference call and Chorus team. Thank you very much.

[Operator]

On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.