Jyothy Labs Shares in Focus: Approved Sale of 75% Stake in Jyothy Kallol Bangladesh

Jyothy Labs Limited has announced the sale of its entire 75% equity stake in Jyothy Kallol Bangladesh Limited (JKBL) to Kallol Enterprise Limited for a total consideration of BDT 3,01,92,134. The transaction was approved by the company’s Board of Directors in a meeting held on March 25, 2025.

As a result of the sale, JKBL is no longer a subsidiary of Jyothy Labs, effective immediately. The company has also signed a Share Purchase Agreement (SPA) with Kallol Enterprise Limited, which previously owned a 25% stake in JKBL.

As of March 31, 2024, JKBL generated BDT 520 lakh in revenue, accounting for 0.14% of Jyothy Labs’ total revenue. The net worth of JKBL was BDT 1,023 lakh, making up 0.42% of the company’s consolidated net worth.

Transaction Details

Kallol Enterprise Limited, based in the Tejgaon Industrial Area, Dhaka, Bangladesh, is the acquiring entity. Although this transaction is considered a related party transaction, Jyothy Labs has confirmed that it was conducted at arm’s length.

The company also clarified that the transaction is not part of any Scheme of Arrangement as outlined by SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

In line with Regulation 30 of the SEBI LODR Regulations, Jyothy Labs has submitted the necessary disclosures along with the SEBI Circular.

Jyothy Labs Q3FY25 Performance

During Q3FY25, Jyothy Labs Limited posted a consolidated revenue of ₹704 crores, demonstrating a 4% growth in value and an 8% increase in volume compared to the previous year, highlighting its ability to maintain a strong market position despite weaker consumer demand and fluctuations in the Household Insecticide category. The EBITDA margin for the quarter was recorded at 16.4%, down slightly from 17.5% in the same quarter last year.

For the 9 months ending December 31, 2024, revenue reached ₹2,180 crores, reflecting a 4% value growth and a 7.2% increase in volume. The company’s Gross Margin improved to 50.4%, an increase of 150 basis points from the same period last year. The Operating EBITDA margin for the nine months stood at 17.8%, showing a slight improvement of 10 basis points from the previous year.

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