JHS - JHS Sven.Lab.

📊 NSE: JHS 🏢 Personal Care - Indian 📅 Last Updated: 12/14/2025 8:37

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Oral Care. FY24 revenue declined 17% YoY due to a strategic realignment of the sales mix. However, Q4 FY24 revenue reached INR 21.66 Cr, representing a 51% increase over Q3 FY24 (INR 14.30 Cr) as new business in the toothbrush segment gained traction.

Geographic Revenue Split

For FY24, Domestic sales contributed 98.65% and Exports contributed 1.35%. In Q4 FY24, the split shifted slightly to 95.60% Domestic and 4.40% Export as international tie-ups began to regain space.

Profitability Margins

Gross margins improved as the company focused on better-margin products. PAT for Q4 FY24 was a loss of INR 0.75 Cr, which is a 92.98% improvement from the loss of INR 10.71 Cr in Q4 FY23. The company is targeting mid-teen EBITDA margins for FY25 through operational leverage.

EBITDA Margin

EBITDA margin for Q4 FY24 was 3.86%, a significant improvement of 2,023 bps compared to -16.37% in Q4 FY23. This was driven by a change in sales mix and a reduction in raw material and employee expenses.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company is focused on ramping up capacity utilization from the current 30% to 70% to drive growth without immediate heavy greenfield capex.

Credit Rating & Borrowing

Not disclosed in available documents. Interest and finance costs for Q4 FY24 were INR 0.13 Cr, up from INR 0.11 Cr YoY.

⚙️ Operational Drivers

Raw Materials

Key raw materials include formulations for Toothpaste, Mouthwash, Shampoo, Hand wash, and components for Toothbrushes (plastics/bristles).

Key Suppliers

Not disclosed in available documents; however, the company mentioned reworking costs from suppliers to improve the bottom line.

Capacity Expansion

Current capacity utilization is approximately 30%. The company plans to expand utilization to 70% by executing an order book of INR 110 Cr for FY25.

Raw Material Costs

Total Raw Material Expenses for Q4 FY24 were INR 14.65 Cr, representing 67.6% of revenue. This was a 4.60% decrease from INR 15.36 Cr in Q4 FY23, reflecting lower raw material prices and a better product mix.

Manufacturing Efficiency

Efficiency is being driven by improved manpower utilization and the addition of senior team members to oversee capacity utilization and deliveries.

📈 Strategic Growth

Expected Growth Rate

30-40%

Growth Strategy

Growth will be achieved through a 30-40% increase in sales via new client additions like Reliance (Retail and General Trade) and Amway, focusing on the export market, and pursuing substantial organic and inorganic acquisitions using current cash reserves and stock.

Products & Services

Toothbrushes (58.97% of FY24 revenue), Toothpaste (29.82%), Talcum Powder (7.92%), Mouthwash (3.29%), and other personal hygiene products like Shampoo and Hand wash.

Brand Portfolio

JHS Svendgaard. The company primarily acts as a private label and contract manufacturer for brands like Reliance, Amway, Zydus, and others.

New Products/Services

Expansion into Mouthwash and Talcum Powder segments, which contributed 3.29% and 7.92% to FY24 revenue respectively.

Market Expansion

Targeting the General Trade (GT) division of Reliance and increasing the export business, which started regaining space in Q4 FY24.

Strategic Alliances

Key partnerships include Reliance, Amway, and Zydus for domestic and retail supply.

🌍 External Factors

Industry Trends

The Indian contract manufacturing market is estimated to grow from USD 19.63 billion in 2023 to USD 38.92 billion by 2028, positioning JHS to benefit from the 'Make in India' push in FMCG.

Competitive Landscape

Competes with other large-scale contract manufacturers in the oral care and personal hygiene space.

Competitive Moat

The moat is built on established reputations with prominent FMCG brands and a diversified product portfolio in the oral care niche, which is sustainable as long as manufacturing standards remain high.

Macro Economic Sensitivity

Sensitive to FMCG consumption trends and raw material price fluctuations.

Consumer Behavior

Increasing focus on personal and home hygiene care products is driving demand for the company's expanded product lines.

Geopolitical Risks

Expansion into export markets increases exposure to international trade barriers and geopolitical stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, and Ind AS 108 for segment reporting.