Jyothy Labs gains 2% on acquisition of laundry service brand Quiclo; check details

In a stock exchange notification, Jyothy Labs said that the company has signed a business purchase agreement with Smartwash Solutions Pvt Ltd to buy out its brand ‘Quiclo’ for a cash consideration of ₹70 lakh in an all-cash transaction. The acquisition deal was completed on September 19, the company informed the bourses.

Jyothy Labs also informed the stock exchanges that the acquisition is only for the software and customer database of the brand and not for any entity, unit or division.

The brand being acquired is in line with Jyothy Labs' laundry service business. The transaction will help the company strengthen its division and expand its customer base in Hyderabad.

Additionally, Jyothy Labs said that the company’s laundry service and dry-cleaning unit in Hyderabad has now commenced commercial operations.

After the announcement, shares of Jyothy Labs rose as much as 2.3% to hit an intraday high of ₹556 on the National Stock Exchange of India (NSE). However, the stock pared some of its early gains to trade over 1% lower at ₹538.1 apiece on the NSE.

The stock has gained nearly 55% in the past one year but has been down around 3% in the past one month.

In the previous quarter ended June 2024, Jyothy Labs reported a consolidated revenue of ₹741 crore, 8% higher than ₹687 crore revenue seen in the year-ago period. Its consolidated net profit stood at ₹101 crore in Q1FY25, up 5% compared to ₹96 crore in Q1FY24.

Jyothy Labs had started in 1983 with one brand named ‘Ujala Supreme’. It now operates in the fabric care, home care, personal care, dish wash and laundry services with brands like Henko, Mr. White, Maxo, Margo, Exo, Prit among others.